Foxtrot Market and Dom's Kitchen & Market have agreed to merge in a deal that would allow the two hybrid market-cafe concepts to leverage the strengths of both, they said.
Terms of the transaction, which is expected to close in the fourth quarter of this year, were not disclosed. The merged companies, both of which are based in Chicago, would be combined under a new entity, Outfox Hospitality.
Liz Williams (pictured above), a former Taco Bell executive who was named CEO of Foxtrot earlier this year, will become CEO of Outfox Hospitality. Don Fitzgerald, co-founder and CEO of Dom's, will serve as president and chief operating officer of Dom's Kitchen & Market through a transition period, the companies said.
Mike LaVitola, cofounder of Foxtrot; Jay Owen, cofounder and co-chairman of Dom's, and Bob Mariano, cofounder and co-chairman of Dom's, will continue to hold advisor and board roles at Outfox.
“Dom's has long admired the Foxtrot brand, viewing it as an industry trailblazer and a market disruptor,” said Owen, who is the grandson of Dominick DiMatteo, founder of former Chicago-based supermarket banner Dominick's Finer Foods and the namesake for Dom's Kitchen & Market.
Foxtrot and Dom's both seek to combine the convenience of a neighborhood market with the experience of a local restaurant, Owen said.
“We do this by curating high-quality goods, preparing expertly crafted meals and delivering warm and friendly service,” he said.
Foxtrot operates 32 stores in Chicago; Washington, D.C.; and Dallas and Austin, Texas, with plans to add more locations in existing markets. It combines a retail offering that includes everyday essentials along with fine wines, local beers, on-trend snack items and an elevated, fast-casual style prepared-foods offering serving all dayparts. It seeks to provide an opportunity for product discovery in its small-format stores, with a strong focus on delivery and ecommerce, the company said.
Dom's, meanwhile, operates two locations in Chicago, offering “locally sourced, globally inspired, specialty, organic, and seasonally driven items,” the company said. The stores, which measure 17,800 and 27,000 square feet, also offer chef-crafted meals and in-store dining. A third Chicago store is slated to open next summer.
The two companies said the merger would allow the merchandising of customer-favorite foods and wines across both banners.
“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,” said Williams. “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. Together, we will bring together community, convenience and curated culinary to create a unique experience for consumers.”
Foxtrot, which has billed itself as “the convenience store of the future,” last year said it had raised $100 million in Series C financing to help fuel its expansion efforts, and announced another $18.6 million in debt financing earlier this year, according to reports. Foxtrot also recently announced a supply agreement with KeHE Distributors for natural, organic, and specialty products.
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