Kickstarting a business is a very difficult task on its own, and it gets even harder when trying to get back up after having to file for bankruptcy once before.Â
Most business owners would find it nearly impossible to return to business after so many unfortunate events. Still, this restaurant chain defied all odds and refused to let any major setbacks hinder its comeback.
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Only six months after bankruptcy, this beloved neighborhood café chain has quickly returned from the dead, reopening multiple stores and even expanding to new cities.
Related: Formerly bankrupt restaurant chain reopens locations, delights fans
However, this time, the company made a strategic business move by choosing a location targeting university students, neighborhood cafés’ number one clients, which might be the perfect formula for a win-win situation.Â
A hopeful merger turns into a terrible financial nightmare
In November 2023, Foxtrot and Dom’s Kitchen & Market joined forces to form Outfox Hospitality. This merger aimed to develop multiple stores that would feature both the classic convenience store and a neighborhood café spanning major cities in the U.S., such as urban areas of Chicago, Texas, and Washington D.C.
Related: Bankrupt restaurant chain gets sued by angry employees
However, this dream partnership quickly turned into a terrible nightmare because the newly formed company was forced to file for Chapter 7 bankruptcy to pay off its massive debt only five months later.
The startling bankruptcy filing left approximately 100 corporate employees and 1,000 service employees jobless without prior warning, as Outfox failed to inform its workforce of the mass closures beforehand.
Former angry Outfox employees retaliate over sudden mass layoffs
In April 2024, Outfox’s former employees filed a class-action lawsuit against the company for violating the Worker Adjustment and Retraining Notification Act (WARN), which requires companies to give employees a minimum of 60 days’ notice before any planned closures or mass layoffs.
This first lawsuit did nothing for the former employees, as they have not received any restitution for the sudden job losses. However, this would be the first lawsuit of many more to come.Â
On Oct. 30, The Illinois Department of Labor (IDOL) filed three separate federal bankruptcy claims against Outfox Hospitality, seeking the payment of wages and benefits the company owed its employees after the WARN law violation.
Because no resolution had been reached, only two months later, IDOL hit Outfox with another lawsuit on behalf of 350 Illinois-based former Foxtrot and Dom’s Kitchen and Market employees for infringing labor laws. It seeks $3.8 million in wages from the bankrupt company created after the merger.
Foxtrot reopens multiple locations and expands to another city
In early September of 2024, Foxtrot began reopening stores in the Chicago area under the name Foxtrot Café & Market, no longer affiliated with Outfox Hospitality and without its previous partner, Dom’s Kitchen & Market.
After five up-and-running Chicago locations, the company decided to expand to another city as a New Year’s resolution for 2025.Â
After much pleading from Dallas fans for locations in their area to reopen, Foxtrot reopened its first Dallas location at 3130 Knox Street in Knox-Henderson on Jan. 17 and added tacos, a Texas favorite, to its new menu.
However, Foxtrot couldn’t wait any longer, and less than a month later, it reopened another location, but this time, it wanted to target a very specific audience.
Foxtrot targets university students as its latest lucrative investment
On Feb. 6, Foxtrot opened its second Dallas location at 6565 Hillcrest Avenue in University Park. This area is known for being a very affluent neighborhood and, most importantly, the home of Southern Methodist University (SMU), one of Texas’s most academically distinguished universities with over 12,000 students. Â
This latest opening was a very strategic move for Foxtrot to reach another audience, specifically students who have turned cafés into their second homes, single-handedly helping these businesses pay their bills.Â
More Foxtrot News:
- Formerly bankrupt restaurant chain reopens stores and delivery
- New owners of formerly bankrupt restaurant chain reopen locations
- Formerly bankrupt restaurant chain reopens fifth location
Neighborhood cafés near universities are convenient spots for busy students to gather with friends, study, have a quick bite between classes, and obtain their much-needed dose of caffeine to keep up with their packed schedules.
Because Foxtrot knows how essential cafés are for students, it expanded its menu by adding all-day food, creative beverages, and SMU-themed items. Additionally, the café will host events involving the community, such as discounts for SMU students who show their university IDs and family days with promotional deals.Â
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