Foxtrot Raises Millions to Reimagine the Convenience Store
CHICAGO — Foxtrot Delivery Market is making an investment in its future as a reimagined convenience store.
Chicago-based Foxtrot, which combines delivery with in-house dining and a selection of curated items, closed a $17-million growth round, co-led by Imaginary and Wittington Ventures, reported Tech Crunch.
Investment from previous backers includes Fifth Wall, Lerer Hippeau, Revolution’s Rise of the Rest Seed Fund, M3 Ventures, The University of Chicago, Collaborative VC and Wasson Enterprise, as well as new investors Bluestein Associates and Barshop Ventures.
Founded in 2013, Foxtrot launched as a beverage delivery app aimed at University of Chicago students. Today, the company has grown into nine upscale c-stores across Chicago and Dallas.
Foxtrot is known for on-demand delivery for its full product suite via its mobile app. Delivery is $5 — including tip for the driver — and is expected to arrive in under one hour.
Customers who place a delivery order will receive a text notification once their order is on the way and can track the order’s progress via the mobile app. A copy of their receipt is sent to the email address associated with the account.
As an added bonus, customers who spend $100 at Foxtrot, either in store or online, will be automatically enrolled in the Perks loyalty program for the current and following month.
When it comes to product mix, Foxtrot offers a wide variety of products, including craft beer and natural wines, in addition to familiar brands and items under the Foxtrot label like sandwiches, prepared meals, candy and coffee. In total, Foxtrot works with more than 100 vendors to supply customers with upwards of 800 different products, Tech Crunch reported.
According to the company, it experienced double year-over-year (YOY) revenue growth, with 150 percent YOY growth of its e-commerce customer based. Its revenue is split 50/50 between offline and online sales.
Founder and CEO Mike LaVitola says maintaining a cohesive experience across retail and online is one of the greatest challenges.
"They're fundamentally different," said LaVitola. "The things that make one successful are very different from the things that make the other side successful. Going forward, to be as successful as we've been in these first markets, we need to make sure that the customer is coming to us online and in the store, and that they feel that they’re seeing the same brands and the same ecosystem."
Foxtrot currently operates seven locations across Chicago's most popular neighborhoods: Southport, West Loop, Lincoln Park, River North and Wicker Park. It also operates two locations in Dallas. The company has plans to expand its footprint in these markets, as well as a launch in Washington, D.C.