Common APP

Understand global finance and economics

Formerly bankrupt restaurant chain menu reveals latest addition

With so many chain restaurants closing locations nationwide, it can seem almost impossible to kick-start a struggling business, especially in an uncertain economy and at the beginning of a trade war.

However, businesses that obtain their products from local vendors might benefit from this tumultuous time, since they don’t depend on foreign goods as much as their competitors. 

💵💰 Don’t miss the move: Subscribe to TheStreet’s free daily newsletter 💵💰

Many business owners would find it nearly impossible to make a comeback after significant setbacks. However, this formerly bankrupt business defied all odds, this time under different leadership.

Related: Formerly bankrupt restaurant chain returns perk customers love

Foxtrot and Dom’s Kitchen & Market joined forces in November 2023 to form Outfox Hospitality. This merger aimed to develop multiple stores featuring both the classic convenience store and a neighborhood café, spanning major cities in the U.S., including urban areas of Chicago, Texas, and Washington, D.C.

However, this business venture wouldn’t get to enjoy the fruits of its labor for very long because it was forced to file for Chapter 7 bankruptcy only five months later to pay off its mounting debt.

Foxtrot Café & Market reopens multiple locations after bankruptcy.

Image source: Chicago Tribune/Getty Images

Former Outfox employees retaliate after the sudden layoffs

The shocking bankruptcy filing left around 100 corporate and 1,000 service employees jobless without prior warning, as Outfox failed to inform them of the closures beforehand.

As the proverb says, “Hell hath no fury like a woman scorned.” But in this case, no one was angrier than Outfox’s former employees. 

The workers filed a class-action lawsuit against the company in April last year  for violating the Worker Adjustment and Retraining Notification Act (WARN), which requires companies to give employees 60 days’ notice before planned closures or mass layoffs. 

Related: Popular bankrupt restaurant chain reopens first store

However, this would become an ongoing legal battle, causing a series of other lawsuits in hopes of receiving restitution from the sudden job losses. 

The Illinois Department of Labor (IDOL) filed three separate federal bankruptcy claims against Outfox Hospitality last October over the WARN law violations, and another two months later.

Foxtrot makes a major comeback with the reopening of multiple locations

Despite its hiccups along the way, Foxtrot began reopening stores in the Chicago area under the name Foxtrot Café & Market in September of last year, no longer affiliated with Outfox Hospitality and without its previous partner, Dom’s Kitchen & Market.

The chain now has six fully reopened Chicago locations, which have been incredibly successful in the community. 

Because of this victorious return, Foxtrot decided to expand to another state. After much pleading from loyal fans, it reopened its first Dallas location this January and, less than a month later, reopened a second location in University Park, the home of Southern Methodist University (SMU).

Foxtrot partnered with local businesses to resell their products and created new menus for each state, featuring beverages and food with regional flavors to differentiate its locations and tailor offerings to local consumers. 

It also launched a merchandise collection for fans, including hats, sweatshirts, and bottle designs, which can be ordered through its app. It even created SMU merchandise for its University Park location.

More Retail News:

  • Another fast-food burger chain is quietly closing locations
  • McDonald’s menu adds experimental new items fans will love
  • Starbucks CEO sends strong message about customers, stock drops

The chain’s business moves have proven successful. It has now reopened eight locations in record time. To keep the momentum going, it finally revealed a new addition it had been teasing for weeks. 

Foxtrot unveiled Shroomies, its new name-brand treat with a handmade logo. These sweet-and-sour gummy mixes come in multiple fun shapes and vibrant colors and can be purchased at all locations. 

Customers can win free gummies for a whole year if they find a special ticket inside their bag. The bags also contain 20 bonus tickets with $50 in gummy credit for the lucky winners.

Related: Veteran fund manager unveils eye-popping S&P 500 forecast

#bankrupt #restaurant #chain #menu #reveals #latest #addition

Leave a Reply

Your email address will not be published. Required fields are marked *