Death of Fox & Obel

photo (63)I’ve written many “Death of” articles – death of Blackberry, death of the penny, death of the Encyclopedia Britannica. But this one really hurts…

Before Mariano’s Fresh Market, Whole Foods, Wild Oats, and Trader Joe’s (I’m still mad at them for not giving me an opportunity to interview after I submitted an application at a different point in my life out West, but that’s a story for another time), there was Fox & Obel, the Chicago-based, River East mainstay for over a decade. With rumored celebrity investors like Scottie Pippen, 5 dollar per ounce olive oil, truffle tasting stations, in-house wet and dry aged meats (initially the only grocer that carried Tall Grass Beef from Red Buffalo Ranch, owned by Bill Curtis), top-notch wine and apéritif lists, hard-to-find regional and international accoutrements, and a Zagat-rated cafe attached, people had flocked to what is arguably the first high-end grocery store in Chicagoland. And this was despite its sky-high prices (trust me, much worse than Whole Paycheck, I meant Whole Foods).

Manning the bakery was Phyllis, a lovely woman and native of South Africa who never hesitated to scold rude customers, who took it. There was Martha, the ever-smiling assistant manager greeting patrons as they walked in and out. And Juanita, café manager and a single mother (her son’s a star athlete at a local Catholic school). Juanita knew exactly how you liked your coffee. Fox & Obel managed the unlikely balance of Chicago Gold Coast uppity-up-ness with a neighborhood feel. My business partner (of Spend Matters fame) Jason Busch Ioved the bakery so much that its muffins, pastries and bread made it into our formal LLC operating agreement for our Spend Matters advisory business (i.e., written into the agreement was that one partner had to “stop at the Fox and Obel” bakery before business meetings – I kid you not, and yes we did honor the agreement!) Unfortunately, it’s now time to amend it.

For a while we’d heard rumors of additional investors, new stores in the downtown area, North American expansion. Then bam: the bottom fell out.

My wife Jenna and I walked around the closing sales event with heavy hearts. To Jenna and me, this was not just a grocery store – Tsige cooked for us, Sue babysat our kids, and on Friday afternoons I used to bring my RJSL and Spend Matters colleagues treats from the Fox & Obel bakery. So what happened? I can certainly make a few hypotheses.

  • Decreasing passion and sense of mission – After initial success, the original founders cashed out to private equity investors. And I could sense a gradual decline in quality over the past few years. Does that mean every buyout spells doom for those acquired? No, but it does mean that if cash flow buyers (as opposed to strategic acquirers) focus too much on the short-term bottom line, it will erode the X-factor that made the establishment special.
  • Hiccups in execution – It could be as minor as less crust on what used to be their signature almond croissant (Jenna noticed it after a new pastry chef came on board; the long-time head quit when his paycheck bounced), as major as multiple health code violations (fruit flies in food preparation stations is what I’ve heard), and everything in between, such as failure to pay electricity bills on time.
  • Poor inventory – Along with declining quality, I noticed that shelves were becoming emptier. No longer was Fox & Obel the go-to place for hard-to-find items, and even its staple trappings were sometimes missing, a cardinal sin for a grocery store. I am not a grocery industry expert by any stretch of the imagination, but even I could see tension between Fox & Obel and its suppliers.
  • Erosion of the foundation – No disrespect to technology and process (many economists claim these are the only two factors that could push the famed EFPC – efficient frontier production curve – outward), but people make up every business’s foundation, regardless of the segment. Again, towards the end, I heard grumblings from Fox & Obel’s employees. Perhaps they trusted me since I was a regular, but nonetheless, I never heard any complaints over the first few years.

I could go on and on, but it won’t bring Fox & Obel back. Furthermore, I think these causes of their failure are a good lesson for just about any business. And in case you were wondering what Jenna and I bought at the final closing sale, we stocked up on Fox & Obel water glasses and Mexican Coca Cola, made with real sugar. Coincidently, the sourcing of Mexican coke is a great personal procurement lesson – which involves having to pay significantly more for a far superior product (which also requires seeking out) albeit with the same corporate brand.

I promise to tackle more cheerful topics for the rest of 2014. Happy New Year, everyone.

We’ll also let you know what new Chicago bakery (La Fournette is highest on our current list) that Jason and I decided to amend and include in our operating agreement so that the entire Spend Matters and MetalMiner office continue to remain well-fed and sugared-up.

Tidbits #11 – The Perfect Filet (Or is it fillet?)

McDonalds filet of fish sandwichNo, not that Filet-O-Fish but actual fish fillet…  And I will admit it – Jenna and I love winding down a long day after our putting our son to bed with a nice glass of wine and watching the Food Network.  After 10 years of blissful marriage, somehow ESPN got replaced by TFN…   Go figure…

giada delaurentis bobby flay rachel rayNo we don’t watch shows by Giada de Laurentis or Rachel Ray, rather edgy episodes like ChoppedWorst Cooks in America and No Reservations.  By the way, I read somewhere that Giada’s show is one of the most taped and watched program by male college undergrads.  But that’s for another post…

Anyway, during a recent Worst Cooks episode, a contestant displayed a look of horror when presented with a whole fish.  Her comments – Whole Foods always has fillets, I don’t know what to do with this thing.  I’ve butchered plenty of my catches in the past so perhaps I should not be writing this post, but I’ve purchased enough whole fish at Fulton Fish Market to sort of know what to do with an entire fish…  Fairly straight forward, According to Juan from the fish market.

  • Initial incision should be right behind the gills next to the collarbone.  As soon as you feel the spine, stop cutting depth-wise.
  • Run your knife along the spine all the way to the tail – while conventional wisdom says knife should not be too sharp as to cut into the spine, I’ve had much better luck with sharper knives.
  • Lay the fillet skin-side down and cut out the ribs first then followed by the skin.
  • Here is the professional’s such as Juan’s secret – run the back of your blade from nose to tail to encourage the pin bones to pop up – then pluck them with tweezers, your fingers or whatever is handy next to you.
  • Goes without saying – repeat on both sides of the fish.

My rule of thumb – unlike red meat, never take out the fat off of your fillet.  That is where all the flavors lie…   Besides, fish fat is not as bad as red meat fat (full disclaimer – I am not a doctor).  Lastly, asides from having a really sharp fillet knife, speed or lack thereof is key to good fileting, e.g. take your time.

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