Foxtrot Market, Dom’s Kitchen to Merge
Chicago-based food retailers Foxtrot Market and Dom’s Kitchen & Market have agreed to merge and will create a new entity called Outfox Hospitality.
In a media release, the companies said this merger is “just the beginning of a prosperous partnership that will bring thoughtfully curated products and experiences to consumers.”
Foxtrot launched in 2013 and has certainly established itself as a retail disrupter in recent years. It’s a combination of a grocer, convenience store chain, cafe and e-commerce marketplace, currently operating 32 locations across Chicago; Washington, D.C.; Dallas; and Austin, Texas, with plans to continue expansion in existing markets.
[Also Read: Foxtrot Store Spotlight]
The first Dom’s location opened in 2021. The company currently operates two stores in Chicago, with a third to open summer 2024. Like Foxtrot, Dom’s stores also offer in-store dining in addition to groceries. The company defines its format as a local food emporium with hubs of prepared and ready-to-cook food options as well as a curated grocery assortment.
When the deal closes, Liz Williams, who became Foxtrot’s first president and chief financial officer in 2022, will become the CEO of Outfox, leading all day-to-day operations, according to the release. Don Fitzgerald, who is the current CEO of Dom’s, will serve as president and chief operating officer of Dom’s through the transitional period.
Mike LaVitola, co-founder of Foxtrot; Jay Owen, co-founder and co-chairman of Dom’s; and Bob Mariano, co-founder and co-chairman of Dom’s, will continue to hold advisor and board roles within the organization.
“Dom’s has long admired the Foxtrot brand, viewing it as an industry trailblazer and a market disruptor,” Owen said in the release. “Our shared vision centers on bringing the convenience of a market together with the experience of a restaurant into hospitable spaces that are destinations in the communities we serve.”
[Also Read: Dom’s Kitchen & Market Preps for Expansion]
“We’re excited for this new venture with Dom’s Kitchen & Market because we share a common mission of modernizing the way people shop," Williams added. "Merging our two brands will elevate the experience for our customers and move the retail industry forward.”
The new combined entity will offer popular food, wines and other products from both retail brands across all stores. Together, the two companies say they will operate a multi-format and e-commerce experience “built for the next generation consumer.”
Additionally, with both companies headquartered in Chicago, there are “scale advantages” and the ability to leverage resources across both formats, per the release. At present, the combined brands have 34 locations.
“We are thrilled to share Foxtrot cult-favorites like our gummy candies, savory snacks and unique wines with the Dom’s community and to bring Dom’s delicious, expertly prepared meal options to local Foxtrot stores,” Williams said. “In addition to our markets, our cafe and coffee businesses are at the heart of our stores, and we look forward to continued growth through our partnership.”
The merger is expected to close in the fourth quarter of 2023. Guggenheim Securities is acting as financial advisor to Foxtrot Market and Latham & Watkins is serving as the legal advisor. Greenberg Traurig, LLP is serving as legal advisor to Dom’s Kitchen & Market.