The Regional Grocery Store Chain That's Suddenly Closing All Locations

Thom's Market, a beloved family-run grocery in Austin, Texas, is shutting its doors after 18 years on April 20th, 2025. Since opening in 2006, the three-store chain has been a go-to for Austin locals, loved for its local produce and artisan products from Barton Springs Mill flours to freshly roasted coffee. Founded by Bill Thom, the stores quickly became community cornerstones along Springs Road, Rivers Drive, and Burnet Road, each featuring the iconic cowgirl mascot, Betty, symbolizing Texas spirit.

Thom's Market has been a fixture in Austin's grocery culture for almost 20 years, cherished by locals for its commitment to local suppliers and diverse offerings including food, beer, and wine. The market was known for its commitment to sustainability and strong neighborhood relationships. However, its closure has sparked conversations about the evolving retail market in Austin, shedding light on the challenges faced by independent stores amidst changes in ownership, market conditions, and community needs. This is not only limited to Austin, a number of businesses in the U.S are shutting down or closing stores in 2025.

Bill Thom decided to close his grocery stores not because of financial troubles or dwindling popularity, but because he's ready to retire and his children live outside Texas. This sparks some wonder, especially given the financial aids the stores received in 2015 and 2018. Observers are looking at larger trends affecting grocery chains across the country — like the aftereffects of the pandemic (the reason quoted by Bar Louie for filing bankruptcy), a 3% increase in the cost of ingredients as of March 2025, and rising wages with Austin's minimum hitting $15, well over the national $7.25.

Bill Thom didn't specifically blame the tough Texas market conditions since Covid-19 for closing his stores, but he's stepping away at 70 after a long tenure. He took over a family business started in 1911, transforming it into the modern Thom's Market with three locations. In his farewell message on the store's website, aptly titled "Adios," Thom thanked the community for its support and announced the stores would close permanently after Easter. He has sold the properties to new owners, whose plans for the spaces remain undisclosed.

The sudden shutdown of Thom's Market has Austin buzzing about the future of its locations,  according to the Austin Statesmsan. While details are still murky, it looks like Lahzat Khanjae, who's set to buy Thom's Market, might assume control of existing inventory and keep some of Thom's local flavor in the products. This move could fit well with Austin's ongoing economic uptick, especially in professional and business services. Bill Thom mentioned that staff retention is likely, which should ease worries about immediate job losses as everyone waits to see what Khanjae will do next. 

This smooth transition is reminiscent of H-E-B's 2022 acquisition of spaces linked to Central Market, which managed to keep its operations and team stable — a critical factor in keeping customers comfortable during changes. While the future of the stores under Khanjae's ownership is still under wraps, sticking to Thom's community-driven approach might soften any potential negative reactions. Thom's Market, known for its strong relationships with about 250 local vendors, seems poised to continue these partnerships under the new ownership. 

The timing of the closure coincides with a spike in demand for commercial real estate in Austin, sparking speculation that the properties could switch to mixed-use developments. However, Khanjae, known for his involvement in convenience store chains, appears likely to maintain a grocery focus for now, given his acquisition of Thom's existing inventory. While details remain vague, there's a hopeful sense among customers that Thom's dedication to local sourcing will carry on.