Foxtrot Market and Dom's Kitchen & Market are planning to merge in a deal that's expected to continue the expansion for both fast-growth brands.
The two Chicago-based food retail ventures will keep their respective names but will operate under a new holding company, Outfox Hospitality.
Liz Williams, who was named CEO of Foxtrot in April, will lead day-to-day operations for the combined company. Williams joined Foxtrot in June 2022 as the company's first president and CFO.
The merger between Foxtrot and Dom's was first reported by Bloomberg on Monday.
In speaking with Chicago Inno, Williams declined to share specifics on the deal but did say it was a stock deal and that the merger had the full support from early venture investors on both sides.
Both brands have expansion on the horizon, with Dom's planning to open a third location in River North next summer and Foxtrot planning to open 50 corner stores by the end of 2024 following a $100 million raise in 2022.
Though the timelines for those openings may need to be adjusted as a result of the merger, Williams said she is excited to continue Foxtrot's growth.
"We're reassessing what the numbers are going to look like, but we'll certainly be continuing to grow in the markets that we're in," Williams told Chicago Inno.
Williams added that no stores will be closed as a result of the merger and that there's a lot of room for growth in the Chicago market for both brands.
The combined company has 34 locations in Chicago, Washington, D.C., Dallas and Austin, Texas. The merger will see food and wines from both brands provided across all stores.
"While we do serve a similar customer and do have some overlap, both of the brands have a distinctive point of view," Williams said. "Dom's is much bigger and has a much wider variety of products to sell a weekly grocery basket along with a cup of coffee. Foxtrot is a lot smaller, much more of a convenience, where you can pop in for a snack or lunch."
Because of the different formats of each store, Williams envisions the brands taking different corners throughout the city.
"I think there's room for expansion for both of us throughout the city and into the suburbs and I think this just gives us a lot more scale in the Chicago market to really support that growth," she said.
The merger is expected to close in the fourth quarter.
