Dive Brief:
- Foxtrot Market and Dom’s Kitchen & Market plan to merge, the companies announced in a press release Monday. Terms of the deal, which is expected to close by the end of 2023, were not disclosed.
- The two Chicago-based food retail brands plan to operate under a new entity, Outfox Hospitality, after the deal closes. Foxtrot CEO Liz Williams will become the new company’s CEO with Don Fitzgerald, Dom’s current CEO, serving as Dom’s president and chief operating officer through a transition period, per the announcement.
- The companies said they share a vision for redefining food shopping and dining experiences, noting that their combination will further propel their ability to offer “thoughtfully curated products and experiences” to customers.
Dive Insight:
This planned merger advances the work that both chains have invested in foodservice and a gourmet shopping experience. It brings together Foxtrot’s broad array of local goods, wine assortment and cafe experience with Dom’s “highly curated” selection of both Chicago-area and international products and its kitchen full of made-to-order meal options.
The merger will bring products from both companies into Foxtrot’s 32 locations and Dom’s two current sites plus one under construction, the press release said.
“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 the release.
The deal should also unlock economies of scale and the ability to “leverage resources” across both of their formats.
Williams joined Foxtrot as president and CFO in 2022 and was promoted to CEO in April after co-founder and former CEO Mike LaVitola stepped down. Prior to joining the convenience retailer, she served as CFO of Taco Bell and then president of Taco Bell International, giving her plenty of experience with running and growing a food-oriented brand.
LaVitola, along with Jay Owen and Bob Mariano, co-founders and co-chairmen of Dom’s, will take on advisor and board roles within Outfox Hospitality.
While the full terms of the deal were not disclosed, Bloomberg reported that it’s an all-stock deal.
“Our shared vision centers on bringing the convenience of a market together with the experience of a restaurant into hospitable spaces that are destinations in the communities we serve,” said Owen in the press release.
This agreement between Foxtrot and Dom’s is the latest in a string of both large and small M&A announcements across the c-store industry in 2023. Notable deals earlier this year included BP buying TravelCenters of America for $1.3 billion and Maverik merging with Kum & Go.
The trend has not abated as the end of 2023 nears. In just the last month and a half, Holiday bought 14 Holiday Stationstores locations back from grocer Coborn’s, Casey’s entered Texas with a 22-site purchase from W. Douglass Distributing, Petroleum Marketing Group bought 10 sites from Springer Eubank Company and SQRL picked up 210 stores from bankrupt retailer Mountain Express Oil.
Foxtrot currently has 32 locations in the Chicago, Austin, Dallas and Washington, D.C., metropolitan areas. Dom’s, which was founded in 2021, currently operates exclusively in the Chicago area.