Outfoxed: When Leadership Fails
Dotted throughout Chicago are corner stores that break up the monotony of big box coffee shops and national brand convenience stores. One such store, Foxtrot, started as an online, local delivery service offering to connect consumers to fine wine, craft beer, fresh snacks, and essential conveniences. Basically, they were a curated delivery service for those times when you needed a quick housewarming gift and ran out of time to shop. Following the success of its delivery service, the founders took a risk in the temperamental Chicago food scene to open a modern convenience store.
In 2015, Foxtrot launched its first retail location, and by 2023, it had expanded to 33 locations in four markets: Chicago, Austin, Dallas, and Washington, D.C. Every Foxtrot store was a little different, reflecting the characteristics of the neighborhood consumers it planned to serve while maintaining a consistent store feeling. By design, Foxtrot focused on creating social spaces for people to catch up with friends or connect to Wi-Fi and work. They stocked the shelves with interesting local or small-batch snack items, delicious wine options, tasty beer selections, and a buzzy café in case you needed a caffeinated pick-me-up. Foxtrot paid attention to the details and with expanding grab-and-go food items, it provided a convenient alternative to busy city residents. After a particularly challenging day, you could wander into a Foxtrot and pick up a can of Rough Day Rosé from the Thracian Valley of Bulgaria. Before you judge, yes, I said a can and yes, it was dry and delicious with an 89-point rating.
Foxtrot focused on creating a replicable, bespoke consumer experience, which is no easy feat. They released an app to make purchasing easier. They offered loyalty perks to those who frequented their vibrant neighborhood locations. With its white building exterior and black store-front lettering, Foxtrot used what worked best at Whole Foods and Trader Joe’s to fill a gap that consumers didn’t know they needed—upscale convenience stores. They began rolling out private label products like Chicago-Style Hotdog Potato Chips, roasted banana and caramel ice cream, peach emoji gummi snacks that they stocked alongside Chicago food purveyors and other unique items produced by small businesses. The items they sold were pricey, but consumers rationalized the costs by making intermittent purchases or with the comforting thought that they were supporting independently owned businesses.
Foxtrot appeared unstoppable when it announced a merger in late 2023 with Dom’s Kitchen and Market, an upscale grocery store founded by Mariano’s Grocery CEO. Although Dom’s only had two locations in Chicago, it seemed that Foxtrot had big plans for the $18.6M it raised in debt financing to support further expansion. In 2024, Foxtrot’s owners created Outfox Hospitality and hired the former Whole Foods Executive Vice President as its new CEO. Everything seemed to be going great for Foxtrot and its vibey neighborhood stores—until April 23, 2024.
On a cool spring day, as Foxtrot regulars entered their local store to grab a cold brew to get their day started, they were abruptly escorted outside, all credits and loyalty perks were voided, and the doors were closed with handwritten signs taped to the windows that said, “Closed for good,” “Foxtrot closed forever,” or “We are closed effective immediately.” Although the exact sequence of events leading to the closure of these beloved neighborhood stores may remain undisclosed to the public, the evident absence of empathy and compassion from Outfox Hospitality towards its employees reveals a significant failure in leadership.
Anyone who has started a business or held a leadership role understands firsthand the challenges and complexities of managing operations and strategy. Determining when to expand or take the next steps can result in sleepless nights thinking about all the ways these decisions can and will impact people. The true disappointment lies not in Outfox Hospitality’s inability to make the modern convenience store concept thrive, but rather in its treatment of the dedicated people who tirelessly brought this vision to life daily across its 33 locations.
Effective leadership transcends business success and failure; it’s about the lasting impact you leave on the lives of those you lead. In the case of Foxtrot’s closure, it’s not just about the demise of a business concept but the abandonment of the dedicated individuals who made it a reality. Employees, left in the dark without transition support, now face uncertainty and hardships. Foxtrot’s legacy could have been one of creativity, community, and authenticity. Instead, the once-vibrant Foxtrot locations stand as silent reminders of dashed dreams and shattered livelihoods.
As leaders, we must recognize our responsibility to prioritize the well-being of our teams, especially in times of adversity. It’s not enough to offer eloquent apologies; true leadership demands proactive support and empathy. We must recognize the human element in every decision we make. True leadership transcends financial success and failure; it is about fostering a culture of empathy, support, and compassion. Let the lessons learned from Foxtrot's closure guide us in our endeavors to build organizations that prioritize people over profits, ensuring that no employee is ever left behind.
