Restaurant Dive’s Post

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

Foxtrot and Dom’s Kitchen & Market collectively operated less than 40 stores in just a few markets. The former was just a decade old, while the latter’s first location hadn’t even celebrated three years in business. But when the news hit last week that both retailers, which merged last fall under newly formed parent company Outfoxed Hospitality, had ceased operations, the outpouring of shock, grief and frustration across the industry was enormous. It’s not clear what led to the demise of Foxtrot and Dom's — two retailers that that had seemed so promising. What is clear, however, is that Foxtrot and Dom’s were operating during a tough time for upscale, innovative retailers. Their downfall comes as both consumers and retailers are feeling more pressure than ever to cut costs, pare down and focus on the essentials. Indeed, we’ve entered a period where creative new retail ideas will struggle to flourish against the raw power of large players and the grinding need for efficiency — and it’ll likely only get tougher from here.

Did you hear what happened in the grocery, restaurant, and hospitality industries this week? Check out the latest headlines from our #ShermsWeeklyInsider series! P.S. Follow us and our Founder & CEO Neal Sherman for the latest industry news. #grocery #cstore #restaurant #hospitality

Great read on the balancing act of innovation and efficiency in the grocery market. The article explores the fresh, innovative ideas of Foxtrot and Dom's and what lessons we can learn from their demise in a high inflationary market. As the grocery industry continues to evolve, it's crucial to find the right balance yet not lose focus on customer demands. What strategies have you implemented to stay ahead in this dynamic industry? #groceryindustry #innovation #efficiency

Remember Foxtrot? The upscale corner store with a unique selection of products? Well, if you haven’t heard, they recently closed all of their stores and it was pretty abrupt. So what does that mean for the Foxtrot employees, featured brands, and investments? Head over to my blog to hear my thoughts on Foxtrot closing. https://lnkd.in/d5Qq2rFy Did you have a chance to shop in Foxtrot before their closure? Let me know in the comments. #foxtrotmarket #favoritedaughterfavoritethings #favoritedaughter

It has been three months since the abrupt and unfortunate closures of VC-backed convenience retail chain Foxtrot, and this one in the hip West Loop Fulton Market location still looks as if it could be reopened any day, with food items lining the shelves, but what appears to be no plan in sight, only wasted food and great memories of a place I used to frequent for coffee and breakfast meetings, as well as shopping for quick items. A tombstone in the VC-backed graveyard. Could a different investor-base (perhaps non-VC) resulted in a healthier situation for Foxtrot? Either way, its always a blessing to spend a few days in Chicago during the summer. #foxtrot #chicago #retail #venturecapital #westloop

🌟 Here we go again - growing is in our DNA🌟 As our business continues to grow at an incredible pace, we’re thrilled to announce the arrival and installation of further blending tanks in the factory! We need to handle over 50,000 litres of liquid every day—a true testament to the scale of our operations. This is for January, which should be a quiet month and Quarter! Here’s a snapshot of what’s happening across the business: ✅ Production: The 5 lines are running, with the team back on 24/5 shifts after a well-earned Christmas break. ✅ Blending: Adjusting to new shift patterns to keep up with demand. ✅ Engineering: Working hard to implement a fully automated system to increase efficiency. ✅ Warehouse: Bustling with activity, so we’re introducing new software to streamline operations. ✅ Commercial: Busy crafting budgets, launching new products in waves, and winning customers in even bigger waves! ✅ Finance: Refining systems, enhancing data insights, and driving smarter processes. It’s incredible to see all our teams working together, aligned in their goals and planning for an even brighter future. It’s only January, and we’ve already achieved so much. A big shoutout to the entire Mallows Bottling & Beverages family—you’re making it happen! #Teamwork #Growth #Innovation #MallowsBeverages #2025Goals #contractbottling #softdrinks #spirits #rtd’s #innovating

Hot 'n Now is the latest chain to plot a comeback this year. The Michigan-based quick-service burger concept once counted about 150 locations and was briefly owned by Taco Bell before filing for bankruptcy in 2004 and eventually dwindling down to a single location. This week, Gun Lakes Investments and developer Jeff Konczak announced they acquired the Hot ‘n Now name, with plans to open two locations this year and more "in the coming years." New locations will be drive-thru and walk-up only, using modular buildings from Konczak’s B Cubed Manufacturing. Hot 'n Now joins Chi-Chi’s, Ground Round, and Steak & Ale with plans for a comeback.

In planning for Q1 2025, I keep circling back to the phrase, "Keep it simple." We all have 100 things that we could be doing in a day. I'm learning that this is no different at Franchise Business Review. Instead of getting caught in the 'we should do XYZ conversation', I'm going to encourage my team to focus on the top 3 impactful rocks. Impact is defined as, "having a strong effect on someone or something." Our someone/something: FBR customers + our internal process. If we get those done [well]? Boom. 💥 Anything else is icing on the cake... and I'm cool with naked cakes. They are beautiful. Photo credit: The best little bakery. Mayflour - Essex, MA #Q1planning #keepitsimple #easiersaidthandone #customersuccess

Can we have an honest discussion about Foxtrot? First, big kudos to Snaxshot for breaking the news before anyone else and handling it, IMHO, in a balanced and professional manner. Second, to be clear, I am very upset to see Foxtrot close down, especially in this rapid manner. I know how hard this must be for everyone involved and I am so sad to see these stores close, especially the one in Old Town Alexandria, which was anchoring such an important corner of the neighborhood. But, maybe this is a time for greater reflection for the industry. I assume, as everyone should Foxtrot did not fail because of mismanagement or poor leadership. No blame there. Macro effects - high rents, high labor costs and reduced foot traffic in downtown areas- were likely the biggest problems Foxtrot faced and made profitability impossible. Scaling too fast was also likely another key problem. I can only guess here. But the scaling too fast question should make us all take a step back and look at the assumptions behind why Foxtrot was such a darling of the industry and investor portfolios...until this week. To my knowledge bodegas and CVS locations (that Foxtrot was, I assume, competing against) are not failing and shutting down at the same rate. So maybe, this is another case where investors, who come from the 0.1%, were just WAY WAY too out of touch with the vast majority of consumers. Investors in the food industry continue to assume that the market for eclectic and esoteric food and bev is/was much, much bigger than it actually is....so many examples. Maybe bodegas and old school delis aren't so bad. They get the job done. They do not have to be "cool." They have been great businesses for immigrant families for generations. Why do we need to make them "cool?" Food is not fashion. Food and beverage (non-alcohol) are not lifestyle brands. Food brands are not aspirational brands. Consumers don't anchor their identity to food brands or get tattoos of food company logos. Food is amazing, personal and cultural...food brands are not. We are commodities. We are easily replaceable and often consumers don't distinguish between brands. It takes a hundred years and continuous work to build brand loyalty in a commodity...I am competing against one of those. Let's stop trying to make food "cool" and just make it better for the average consumer. Our consumers should be families and people just trying to pay their rent and get to work and not the millionaire heiress with the huge TikTok following. https://lnkd.in/ebMgUn6y