The fast casual and grab and go portion of the restaurant industry can be a tricky one.
While many customers in a city tend to prize convenience over pricing, there comes a point in time where prices get too hefty for most sober-minded consumers. Pair that with ever-changing consumer tastes, which often fluctuate with the market, and it operating a swanky downtown convenience store can be a dangerous tight rope to walk.
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On the one hand, many convenience chains saw considerable success during the Covid era, when customers stayed away from more formal dining establishments but still wanted to get out of the house to grab a bottle of wine for company at home or a croissant sandwich during the lunch break.
Many chains saw rapid growth during the early 2020s, expanding from just a few locations to nationwide, particularly in high-rent districts of cities that still had plenty of demand for quality and convenience.
But the post Covid road hasn't been so easy. The novelty of grabbing a cocktail to go has since worn off, and more consumers are watching their budgets closely as high inflation takes a bigger chunk out of their paycheck. It's no longer easy to justify a one-off purchase of a $10 artisanal ice cream pint when your grocery bill for the necessary staples continues to rise each month.
Popular nationwide chain closes immediately
One such chain that found this out the hard way was Foxtrot and Dom’s Kitchen & Market, which merged in late 2023 after considerable growth across major metropolitan areas, including Washington, D.C., Texas, and Chicago.
Foxtrot and Dom’s Kitchen & Market offered mainstay conveniences for urban consumers, like freshly made sandwiches and baked goods, crackers, bread, cereal, bottles of organic wine and even supplements like magnesium.
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In 2023, the company raised over $18 million in debt financing and expanded to 33 locations across the U.S.
But just five months after merging, the new company Outfox Hospitality, announced it would shutter all of its locations and file for Chapter 7 bankruptcy, according to Snaxshot.
The announcement came suddenly on the morning of April 23, when Outfox alerted corporate employees during a conference call that all stores would be closing by noon that day. There are approximately 100 full time corporate employees working for Outfox from its headquarters in Chicago, plus another 1,000 working across the various market locations in Texas, Illinois, and the greater Washington, D.C., region.
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"It is with a heavy heart that we must inform you of a difficult decision we have had to make," the company wrote April 23, adding that "This decision has not been made lightly."
"We understand that this news may come as a shock, and we apologize for any inconvenience it may cause. We genuinely appreciate your understanding during this challenging time," the company wrote.
Some reports allege that market workers were kept out of the loop about the anticipated closures, with some reporting they had to usher customers out of the store so they could shut down in time for the noon deadline.
"Foxtrot employees are handing out free bottles of wine at one of the downtown DC stores, after the company announced the closure of all its locations," one D.C.-based X user tweeted.
‼️ Foxtrot employees are handing out free bottles of wine at one of the downtown DC stores, after the company announced the closure of all its locations https://t.co/41bkyREx2H
— Jessica Sidman (@jsidman) April 23, 2024
"I'm outside the Division St Foxtrot in Wicker where people are FREAKING out about the chain's closure. One woman just told me she moved to the neighborhood because Foxtrot was here," a Chicago user wrote.
I'm outside the Division St Foxtrot in Wicker where people are FREAKING out about the chain's closure. One woman just told me she moved to the neighborhood because Foxtrot was here @BlockClubCHI pic.twitter.com/fM1RGRK8zs
— Quinn Myers (@rquinnmyers) April 23, 2024
"All Foxtrot coffee shops in Dallas closed mid-morning while customers were still inside. If this sounds bananas, it is," another posted.
All Foxtrot coffee shops in Dallas closed mid-morning while customers were still inside. If this sounds bananas, it is.
— Sarah Blaskovich (@sblaskovich) April 23, 2024
What we know: https://t.co/EE1wvHL5jp
TheStreet has reached out to Outfox for comment.
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