Benjamin Kosinski’s Post

I visited my first Foxtrot last year while in Chicago and absolutely loved it! I'm curious to see what will happen (if anything) for this brand. If you're interested to learn more about Foxtrot and/or its recently merger with Dom's Market, check out the Special Features and Small Operation sections of CSNews.com

The news of Foxtrot's closure last week was devastating and my deepest empathy goes out to all those affected—to the employees, the brands, and all who partnered in bringing the retail concept to life, many of whom are my customers, peers, and friends. For me, personally, this has been the loss of a fellow pioneer. Since starting Pop Up Grocer in 2019, barely a day has gone by without the retailer coming up in conversation. Foxtrot was by our side in supporting emerging brands—often times, like us, serving as their very first shelf. Larger retailers have extremely high barriers to entry and independent stores have limited reach—these brands need somewhere of meaningful impact to go, quickly. And while their failure, for many, will simply help draw the conclusion that “small format”, “premium convenience,” and “emerging brand-first” doesn’t work. Or, as I’ve seen commentary here, “a lack of product/market fit,” I respectfully and sorely disagree. One must look closer. For us, I won’t pretend to be without challenges—the market has significantly changed since our start five years ago and this has impacted our brand partners as well as our own costs of doing business. But, we believe very much in the opportunity to serve these emerging brands and to provide a much-desired and unique experience for our customers—now, more than ever. If you are a brand looking for a shelf with high visibility, I hope you will reach out. And if you are interested in joining us in this pursuit—as an investor or other strategic partner—I would love to connect. 

A sad day for lovers of new & delicious things. Food and beverage startups have been mourning the death of Foxtrot since Snaxshot broke the news of its closure last week. The Chicago-based grocer was a launchpad for innovative food and beverage products—a stepping stone on the path to scale. Food and bev is still heavily dominated by big, global players. Despite the internet's promise to democratize everything, the food and bev gatekeepers—ie, Big Grocery—continue to thrive. So Foxtrot’s demise isn’t just a blow to the suppliers left with unpaid invoices (and evidently there are many; this is utterly shameful). It’s a blow to all of us trying to slay Goliath; to build businesses from the ground up; and to help people imagine a more diverse, delicious and interesting world. All the more reason to support businesses like Pop Up Grocer, and independent grocers everywhere, which serve as vital showcases for new ideas. RIP, Foxtrot.

Grounds for closure: Where did Foxtrot's growth strategy fail? Foxtrot, a Chicago-based coffee shop and retail chain, announced the closure of all 33 nationwide locations, including four in Dallas, as part of its bankruptcy proceedings. This decision follows the integration of Foxtrot and Dom’s Kitchen & Market by Outfox Hospitality, which filed for bankruptcy five months prior. Accumulating $18.6 million in debt in 2023 due to expansion efforts across multiple cities, including Chicago, Austin, Dallas, and Washington D.C., Foxtrot explored various strategies to sustain operations unsuccessfully. Was their expansion too rapid, outpacing their business model's readiness? Initially renowned for its dedication to local brands, with 40% of its shelf space allocated to emerging brands as of 2022, Foxtrot underwent a transition towards national brands as part of its expansion strategy, consequently relegating local and emerging brands to a lower priority. For example, it recently substituted local coffee roasters with La Colombe, in line with the prevailing trend of collaborating with larger suppliers for essentials such as produce and meats. Delivery, once a significant revenue stream, saw changes as Foxtrot outsourced delivery contracts to third-party platforms in 2023, departing from its previous in-house courier model. Initially proceeding with caution regarding expansion, Foxtrot's ambitions soared nationally following a $100 million Series C funding round in 2022. This led to plans for opening 25 new stores, expanding the tech team, and making significant investments to expedite online order fulfillment. What factors do you think contributed to Foxtrot reaching this critical point? 👉 Click link for details: https://lnkd.in/gQxvDhAK #NNN #retail #realestate #investment #investing #commercialrealestate #property #passiveincome #cre #investor #realestateinvesting #commercialproperty #netlease #retailrealestate #foxtrot #bankruptcy

As someone who hadn't experienced Foxtrot and Dom's Kitchen & Market firsthand, the sudden closure of these businesses prompts reflection on what customers truly seek from their grocery experiences. This article sheds light on the challenges that innovative retailers face amidst the dominance of larger competitors and the demand for efficiency. Despite their ambitious growth plans, both Foxtrot and Dom's ceased operations abruptly, leaving the industry reeling with shock and frustration. Foxtrot revolutionized convenience by offering a multifaceted experience encompassing a café, grocery, and delivery services, while Dom’s distinguished itself through culinary excellence with its foodservice stations. The demise of these retailers sparks speculation about the viability of their business models and the effectiveness of their financial management. In an era where cost-cutting and essential-focused strategies reign supreme, retailers struggle to sustain imaginative concepts in the face of industry giants. Foxtrot's labor-intensive model and Dom’s experiential focus encountered significant pressure to deliver consistent returns. The relentless competition driven by efficiency and evolving consumer spending habits poses challenges for startups, while established players like Aldi thrive with their lean operations. However, amidst these challenges, there remains opportunity for innovation, albeit in a more focused and selective manner. Retailers must strike a delicate balance between cost-cutting measures and providing unique experiences to stay competitive in today's landscape. Whole Foods serves as a prime example, maintaining customer excitement through innovative store designs, emphasis on local sourcing, and meticulous brand development. In conclusion, the abrupt closure of Foxtrot and Dom’s serves as a reminder of the imperative for retailers to pilot innovative concepts while nurturing strong connections with customers, even within an environment demanding utmost efficiency. #RetailInnovation #CustomerExperience #GroceryTrends

Have you read our story yet about Schnuck Markets, Inc. and their first cohort of diverse small businesses coming into the stores? It was a front page news story for our September 2024 issue, and you can also view it through the link here: https://lnkd.in/gZYY8Q_K

Lots of buzz around Foxtrot shuttering in my feed. Plenty to unpack here. First off my heart goes out to the employees affected and the emerging brands that were bought into the idea of Foxtrot being a catapult for their businesses. I genuinely hope that everyone can survive the severity of this action. My 2 cents if anyone gives a $h!t. I was there a few years back with Freak Flag Organics chasing Foxtrot as an account. These cute, curated, retailers seem to be great marketing playgrounds for emerging brands to be 'discovered', harvest data, etc. While they can be beneficial, the juice often isn't worth the squeeze. What happened with Foxtrot is not surprising. The strictly emerging/sexy brand model at retail just isn't profitable, for anyone. I fear ego likely had a hand in this. Raise 100M and then expand way too fast, and geographically too thin (DC issues, brand building, etc) is just not fiscally feasible. Or responsible. Ego (possibly greed) drives this sort of behavior. It's apparent that big CPG brand slotting fees, marketing support, etc combined with own brand expansion are a sad necessity for the majority of retailers. Drizzle on unforeseen issues like gnarly inflation (bougie rent, cogs, etc), supply chain issues etc made it incredibly difficult for them to make it. Erewhon is another example of the OG 'cool kid' retailer diverting/avoiding losses by expanding private label offerings...in a BIG way. Sadly, they are likely going the way of Whole Foods Market. At the end of the day, this F-ing sucks. I wish nothing but the best for everyone that didn't see this coming. It's not easy. #cpg #retail #grocery #trendy #ebitda #cogs #profitability

BeatBox is CRUSHING it. Here's what it means for the rest of the booze industry: BeatBox has blazed a trail unlike many others we've seen in the space. They've taken a new kind of product and packaging (one that hadn't really gone mainstream previously) and taken it nationwide largely on their own. This is a company that I'm sure any large supplier would love to get their hands on and frankly, one they probably all wish they could have acquired earlier! So, what does it mean? It means that alternative formats and packaging are very much in play. In a moment in time when booze companies are looking for new ways to find growth, I expect we'll see many more companies like Gratsi and BeatBox discovering and building entirely new sub-categories. Bullish on the next generation of alcohol and CPG businesses that blaze their own paths! If you're considering launching a new booze biz, now might just be a good time to do it... CC Top Shelf Ventures -- PS- Any other examples of companies building with new, innovative packaging or product types?

In 2017, our founder Ed Barry opened his first coffee shop with no roadmap—just on a mission to have a positive impact every day! Six years later, that vision turned into eight thriving locations across the UK and a franchise in the Middle East. After selling his coffee business, Ed launched Edify, driven by the challenges he faced as a coffee chain owner. Our mission? To simplify lives by solving the same problems Ed encountered—We’re starting where Ed found it the most challenging. Ed’s journey inspires everything we do: ☕Be Bold – Approach challenges with courage. ☕Be a Lifelong Learner – Embrace constant growth. ☕Be Kind, Open, and Honest – Build trust through mutual respect. At Edify, we don’t just build solutions—we’re building a culture that makes lives easier for coffee shop owners & their teams, everywhere. #inventorymanagement #companyculture

This week we saw Foxtrot close its doors, leaving a large number of affected businesses feeling bruised and uncertain about how to proceed without sufficient communication to guide them. "Representatives of a number of local businesses that supply goods to Foxtrot and Dom's said they will now have to try to recoup the money owed to them for recent orders." What implications does this have for cash flow within a growing business? Are brands adequately diversifying their channels to mitigate risks? At Wayflyer, we promote business expansion and highlight the necessity of a varied, multi-channel footprint. If you’re looking for bespoke working capital solutions for your Wholesale and EComm business - DM me. #CPG #Foxtrot #GrowingBusiness #Wayflyer #Funding #WholesaleFunding