On Grocery Stores, Part I
A rant/explainer.
Welcome to this week’s post for all subscribers, on grocery stores. On Friday, paid subscribers will receive a recipe for “chocolate coconut bars” which may or may not closely resemble a favorite candy bar whose name remains trademarked. As always, check out more of my food photography at my website here.
Grocery stores may seem like a gnarly topic to tackle on an email newsletter that rarely exceeds 500 words, but reader, they have been on the mind as of late. Last week, the world of consumer packaged goods (CPG) was turned upside down when Chicago-based retailers Foxtrot and Dom’s Market closed unexpectedly. The internet aftershocks that followed felt a bit like niche internet drama (throwback to the Chrissy x Alison drama that consumed me in 2020!!), but I think it’s an important moment to discuss in a wider lens to help those of you outside the world of CPG understand the ramifications.
First, some background. These two chains merged late last year in what was widely considered a boon to small food companies: Foxtrot was known for their Up & Comers Awards, in which they recognized burgeoning CPG brands and offered them shelf space. The merger with Dom’s Market, which was co-founded by Bob Mariano of the Mariano grocery fame, offered these small brands that had been championed by Foxtrot the opportunity to expand onto more shelves. Amongst my clients and friends in the industry, getting into Foxtrot was a watershed achievement, recognizing their products as on-trend, yes, but viable on a retail shelf—important metrics if they were seeking expansion into more expensive, competitive shelf space.
That these brands are losing a retail partner who offered a trendy, small-brand friendly opportunity to test retail capabilities is unfortunate, to be sure. What’s even sadder is that the brands whose products were on shelves are unlikely to be paid for the purchase orders they had last filled, leaving them even more strapped for cash than they already might be as little baby CPG brands. Many of my clients are mourning both current financial losses and the loss of the potential that being a Foxtrot brand represented. To say this is a blow is an understatement.
Of course, this being a very online age, the trolls have been showing up in the comments: “Sad day for rich people.” “Not surprised, it was marketed towards people who love to over pay for internet/brand hype and 8 dollar coffees. What a rip off.” Whatever your attitudes towards expensive coffees and niche products that, yes, often come with a higher price tag, the fact remains that many factions of the Foxtrot ecosystem are people, and those people have been left in the lurch. From employees who showed up to work on Tuesday only to find that they were out of a job to the companies who will likely never get paid for the final purchase orders that Foxtrot was ordering just weeks before closing, there is a gap here that looms large.
Fundraisers and offers have popped up in Chicago to support staff and makers: Here Here Market is offering a fee-free first month to small businesses. Side Practice Coffee is opening up shelf space to new vendors. In Good Spirits donated 100% of the weekend’s tips and 10% of all sales to Foxtrot employees who were laid off. Other businesses are filling gaps for customers: Andale Market offered $10 off to anyone who came in with a Foxtrot or Dom’s gift card. Countless lists have popped up listing small businesses and coffee shops to patronize instead of Foxtrot.
This is a poignant lesson: a business model flush with venture capital and business practices that were, at best, disorganized and spur-of-the-moment and at worst, shady and dishonest has evaporated overnight. Small, locally-owned businesses, including the ones that it had been accused of bullying and copying in the past, are proving their staying power to support other small brands.
Smarter, more economic-minded writers will figure out what went wrong with Outfox Hospitality. Business-savvy trend predictors will tell us what this means for the future of CPG and shoppy shops. I’m just here to tell you that there are lots of people—behind the brands that Foxtrot stocked, behind the bar, serving coffees—who deserve our support regardless. Check out this Instagram post for a list of brands that are affected and support them by buying their products, following their pages, and asking for them at your favorite shops.
See you back here on Friday for candy! Next Tuesday, we’ll dive into a deeper, more introspective look at grocery stores.