Dom’s, Foxtrot cease operations

Dive Brief:

Dom’s Kitchen & Market and Foxtrot Market ceased operations Tuesday, Dom’s posted on its website.
The closure impacts 33 Foxtrot locations across the Chicago; Austin, Texas; Dallas; and Washington, D.C., metropolitan areas as well as two Dom’s locations in Chicago. It comes a few months after the grocer and convenience store chains announced their merger.
“We explored many avenues to continue the business but found no viable option despite good faith and exhaustive efforts,” Dom’s said on its website.

Dive Insight:

All elements of both Foxtrot’s and Dom’s businesses will close at the end of the day on Tuesday. According to Dom’s website, that includes delivery capabilities, store operations, store credits, both brands’ mobile apps and all customer-facing operations.

In a statement on Dom’s website and on Foxtrot’s Instagram account, the companies said the decision to shutter operations “has not been made lightly” and that it understands the impact it will have on its customers and team members. The company thanked its customers, team members and partners for the brand it built over the years.

“We understand that this news may come as a shock, and we apologize for any inconvenience it may cause,” the statement reads. “We genuinely appreciate your understanding during this challenging time.”

Last November, Foxtrot and Dom’s announced they were merging in an effort to “redefine food shopping and dining experiences” and offer “thoughtfully curated products and experiences” to customers.

At the time, former Foxtrot CEO Liz Williams took over the combined entity, Outfox Hospitality, with Dom’s CEO Don Fitzgerald serving as chief operating officer. However, in February, Williams left the company to become CEO of restaurant chain El Pollo Loco, and former Whole Foods executive Rob Twyman became CEO of Outfox Hospitality.

Dom’s was founded by Bob Mariano, the founder of the renowned Kroger-owned Chicago-area supermarket chain that bears his last name. Mariano partnered with Fitzgerald, a former Mariano’s executive, and Jay Owen, whose grandfather founded the former Dominick’s supermarket chain.

Dom’s, which opened its first store in 2021 and a second location the year after that, featured a unique store experience that focused on made-to-order meal stations positioned at the center of the store. The company saw grocery as playing a secondary role to offerings like a sandwich shop, sushi bar and artisan pizza.

Dom’s founders had high hopes for the upstart chain, with Fitzgerald describing the opportunity to work with Mariano on the project as irresistible. “This was kind of my ‘Last Dance’ to apply everything I learned in my career, but still get a chance to try a startup,” he said in an interview in 2021, when the first Dom’s location opened.

The retailer had planned to open a third store in 2024 and operate as many as 15 locations by 2025.

Foxtrot, which began operations as an online-only business in 2013, defined itself by offering a curated selection of local products along with fresh-made meals.

Although it’s unclear why exactly the two chains have ceased operations, the economic climate has not been favorable of late for upscale food retailers. Foxtrot, which expanded rapidly over the past few years, sold made-to-order meals, smoothies and coffee, and featured many local and niche brands in its stores.