When Foxtrot Market folded, Austin's homegrown Royal Blue Grocery didn't bat an eye. Despite the grocery wars claiming a national player, the local bodega chain stands firm after 18 years in the game, and could even eye the vacant Foxtrot spaces for possible expansion, their co-owner hints.
Craig Staley, co-owner of Royal Blue, believes in understanding both their limits and market. "Where to open and where it can't compete," he said, adding that keeping an eye on margins is crucial in this tough industry. According to Austin Business Journal, Royal Blue walks the tightrope gracefully, catering to a diverse demographic from the wealthy to the homeless, with seven stores in downtown Austin and another outpost in San Antonio.
Royal Blue's business recipe includes a staple diet of ready-to-eat foods, which Staley claims have been a cornerstone for their survival and growth. "We couldn't have existed with just one store. And we wouldn't have made it without prepared foods," Staley told the Austin Business Journal. The company pursues a steady profit margin of around 37%, backed by a 3,600-square-foot commissary kitchen churning out popular house-made sandwiches and cookies.
Meanwhile, Foxtrot Market, a competitor who pitched itself as more of a tech enterprise since its 2016 inception, didn't survive to see its eighth year. After soaking up a hefty $160 million in funding, including a $100 million series C for expansion, Foxtrot's 33 stores in prime urban locations like Austin, Chicago, and Washington, D.C., closed down earlier this month following a merger at the end of last year. Staley calculated that about 200 stores would've been necessary for Foxtrot to satisfy its investors — a milestone far removed from their actual reach.
The tale of Royal Blue Grocery is not just a business saga but a chronicle of evolving friendship and enterprise. Staley and George Scariano, fellow co-owner of Royal Blue, cut their teeth bussing tables at Chuy’s and rode the wave of its expansion to forge their destiny. "They really inspire a lot of people. So we have this kind of friend network of all of these business owners in Austin that came from the 1990s Chuy’s,” Staley reminisced in the statement obtained by the Austin Business Journal. From soda fountains to kombucha and espresso, from foam cups to curated wine selections – Royal Blue Grocery has adapted not just to market trends but to the heartbeats of Austin's neighborhoods.
As Royal Blue considers its future – possibly in locations left vacant by Foxtrot – Staley's reflection offers a sobering reminder for any retail upstart: "Our competition is pretty much everybody and we sell a lot of commodities." Queen may have sung 'Another One Bites the Dust,' but for Royal Blue, it's just another day in the retail jungle.
