Is High End Convenience Store Foxtrot the Next Big Thing

 

You want what when? You name it, Foxtrot the Chicago based high end retailer that focuses on delivery, just raised another $42 Million dollars, to give convenience store customers in ‘up-scale’ neighborhoods just what they want and when according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

Foxtrot, currently operates just eight stores in Chicago and Dallas, expects to add as many as nine stores in those cities by the end of 2021, and expand into new markets including select Washington, D.C. neighborhoods. So, we ask is Foxtrot the next big thing?

Consumers don’t care if big name investors the ilk of celebrity chef and restaurateur David Chang, sweetgreen co-founder and CCO Nicolas Jammet and former CEO of Whole Foods Walter Robb invested. 

Consumers do care about 60-minute delivery, including wine, Ready-2-Eat and Heat-N-Eat fresh prepared food, and meal components that can be bundled into the perfect mix & matched meal for one, two, or three.

Consumers do care about Foxtrot’s line of private label packaged goods and gift offerings, that can be delivered within an hour. They also care about cashierless instore checkout, fast service, never out of stock staples, and good prices.  Even high end customers want to maintain the price, value, service equilibrium.

CEO and Co-founder Mike LaVitola stated “With this new round of funding and an incredibly strong executive team now fully in place, we see 2021 as a year of tremendous growth for Foxtrot,” … “We have built a business that marries the local approach of a corner store with the convenience of e-commerce. We know how our stores operate best and in which markets, which is where we’ll be going deep with our expansion efforts next. We also look forward to showcasing to customers coast-to-coast what Foxtrot is all about as we continue to roll out shipping nationwide.” 

Here is a little background; “Foxtrot combines an upscale corner store and café with app-based purchasing that makes its entire inventory available for delivery in under an hour. Foxtrot derives its revenue equally between online sales and in-store purchases. The brand’s delivery model has been central to its customer service strategy since inception, making Foxtrot uniquely positioned for strength during the pandemic. In 2020, company sales increased over 100% fueled by consistent year-over-year growth across channels. Of that growth, according to the company, 55% derives from retail, largely from same-stores sales, and over 200% from e-commerce, driven by 100% increase in app downloads.”

Yes, Foxtrot stores offer a full-service café, sommelier-curated wine shop, and unique gift bundles for every occasion. In addition to grocery staples, Foxtrot stores offer a full-service café, sommelier-curated wine shop, and unique gift bundles for every occasion via on-demand delivery and in its tech-enabled brick and mortar stores. Select gift bundles are also currently available in Foxtrot’s Ship Shop, which will continue to add offerings as it expands its nationwide shipping capabilities. How much room is there for high-end convenience meals, gifts, and snacks?  We think enough to get to 200+ units.  Then what? What do you think?

Don’t over reach. Are you ready for some fresh ideations? Do your food marketing ideations look more like yesterday than tomorrow? Interested in learning how Foodservice Solutions® can edify your retail food brand while creating a platform for consumer convenient meal participation, differentiation and individualization?  Email us at: Steve@FoodserviceSolutions.us or visit us on our social media sites by clicking the following links: Facebook,  LinkedIn, or Twitter

Food Branded retail space food sales Urban vs Suburban

Consumers that work in urban centers are inclined to make more money, eat out more often, and pay a higher price for both food and beverages according to the US. Census Bureau. Today, new grocerant niche Ready-2-Eat and Heat-N-Eat fresh food retailers are targeting those centers in a ‘land grab’ according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

Johnson continued “legacy brands may end up being valued brands in the suburbs and in rural location fighting for survival while ‘new’ retailers deliver a new value add urban relevant set of fresh food offerings.

Recently, urban convenience-store retailer Foxtrot received a $17 million growth funding round co-led by Imaginary and Wittington Ventures and has two new locations slated to open soon, the company has announced.

So, Foxtrot’s stores represent “a digitally native evolution of the corner store/cafe that marries the best of neighborhood retail and e-commerce technology to offer a thoughtfully curated collection of daily essentials, coffee and prepared foods available in-store or delivered in under an hour,” the Chicago-based chain said..

Nick Brown, co-founder and managing partner of Imaginary  stated “Foxtrot has built a brand that redefines the perception of what convenience stores can and should be for today’s consumers by marrying its digital roots with brick-and-mortar, focusing on community and bringing people into the stories around their product,”  “Seeing the loyalty of their customers over the past few years and how they’ve grown with Foxtrot, it’s clear to us that Mike and his team have created a unique omnichannel experience that we’re eager to partner with and take to the next level.”

Note: Foxtrot has seen 150% year-over-year growth of its e-commerce customer base, 250% year-over-year growth of its corporate team head count and two-times year-over-year revenue growth, the company said. Loyalty program customers shop at Foxtrot 10 times per month on average across both retail and e-commerce channels, it said.

Each Foxtrot retail location features hand-selected local and heritage products such as craft beer, wine, spirits, food, gifts and everyday essentials, as well as Foxtrot-branded and private-label items including coffee and prepared food, which account for 50% of sales. Consumers can also order in-store products through the Foxtrot app and e-commerce site and select on-demand delivery.

Grocerant niche Ready-2-Eat and Heat-N-Eat fresh food retailers edified with technology, fresh fast local food, and beverage the ilk of Eatzie's and Foxtrot will continue to garner urban locations displacing legacy branded food and beverage retailers that continue to do what they have all ways done and keep doing it the same way according to Johnson.

Are you ready for some fresh ideations? Do your food marketing tactics look more like yesterday that tomorrow?  Visit www.FoodserviceSolutions.us for more information or contact: Steve@FoodserviceSolutions.us Remember success does leave clues and we just may have the clue you need to propel your continued success.