Updated story from the Tribune: No word on Fox & Obel re-open plan after health violations

Three days following an emergency closure due to a laundry list of health code violations, Fox & Obel is still closed with no word of when the gourmet grocer will re-open.

Monday’s failed inspection was the company’s sixth in three years. During the re-inspection following a complaint of suspected food poisoning, more than 200 fruit flies and 30 cockroaches were found in food prep areas and behind a wall, according to the Chicago Department of Public Health.

The inspector additionally noted food debris and grease on cooking equipment and dirty floors, walls, prep coolers, tables and food storage containers, as well as standing water in the dish washing area.
The grocer has failed six inspections in the last three years, and has a history of problems with storing meat and dairy products at safe temperatures, according to health department reports.

I remember how thrilled I was the day F&O opened. For years, I was a steady customer. Produce was never a strength, but the cheeses, meats, bakery and gourmet packaged food selection couldn't be beat. Seafood was also pretty good, as I recall. They had a Paulina Market trained butcher running the meat department.

Gradually, the depth of inventory in the packaged foods department began to shrink. Things like White Lily flour were no longer on the shelves. Then, I remember seeing the seafood counter slowly evolve. I work nearby, and needed four portions of salmon for a tasting. It looked so bad that I then went over to the Dominick's location on Columbus, where I actually found some pretty nice farm raised product. On one occasion, I noticed belly lox from the Deli counter, and asked for a pound. The guy slicing it cut me a sliver to try. It had sone sour sitting in the display case so long.

When the cheese selections were reduced to almost nothing, with literally all product pre portioned and shrink wrapped, they lost me as a cheese customer.

As far as the pest situation goes, I'd like to share a little insight from my experience running a kitchen in a huge 100+ year old building for 10 years. The roaches and their pals live in the walls. There is no way to permanently get rid of them. But with the help of an aggressive Pest Control company (better living through chemicals) as well as good daily sanitation practices, you can drive the pests back in the walls and keep them there.

FYI, roaches as well as fruit flies enter every restaurant kitchen on a daily basis via cardboard produce boxes. This is why the city inspectors encourage you to transfer everything to non pourous containers and dispose of the boxes.

At that former club, we had a great pest control company that knew our building and did a great job of keeping our kitchens pest free. When money became an issue, the GM switched to a different provider in order to save money. We all warned him, but he had to cut expenses. Sure enough, in a matter of months, we were bombarded by roaches and fruit flies. Like my mother, may she rest in peace used to say, "You buy cheap, you get cheap!"

That's really interesting Darren.
I could have sworn the sign said "open" yesterday evening when I passed on the way home.
Tonight I will walk the dog that way and let people know what I see.

Darren72 wrote:Updated story from the Tribune: No word on Fox & Obel re-open plan after health violations

Clicking on this link now reveals that F&O has re-opened.

DML wrote:That's really interesting Darren.
I could have sworn the sign said "open" yesterday evening when I passed on the way home.
Tonight I will walk the dog that way and let people know what I see.

I parked in front on McClurg last night. There was an upset wife & husband with 2 ya's scoping their smart phones for where to next. The father wanted the Irish pub & the mother was literally rattling the bars trying to get in versus the Irish pub. Then there were raised voices about finding some place to eat. I almost jumped out and suggested GNR Purple Pig but I don't think it would be his idea of a welcoming wagon . This was around 8 pm. They were definitely not open at that time.

D4, one Irish pub in the area, is pretty good for what it does. Above average for bar food and a nice beer selection.

Lizzie McNeils is the other Irish pub in the area. Bad food, average beer list, but right on the river.

As I noted above, the one really good place in the area is Local Root. I will have to do a full post on the place since it looks like nobody has done so. Great coffee in the morning with bakery made that morning, good fast casual lunch, and dinners have some interesting although much of the menu has an upscale comfort food feel.

DML wrote:As I noted above, the one really good place in the area is Local Root. I will have to do a full post on the place since it looks like nobody has done so. Great coffee in the morning with bakery made that morning, good fast casual lunch, and dinners have some interesting although much of the menu has an upscale comfort food feel.

OT: I agree 100% on the quality of the bakery, food and coffee (Intelligensia) at Local Root. Unfortunately, their croissants are about the size of my thumb, and their scones are the size of a cookie. Not exactly the filling grab & go breakfast I want. They used to have a little bacon, egg & cheese sandwich on the menu that was absolutely perfect, but they took it off (or only serve it one day a week, IIRC). Anyway, all of this is moot for me b/c I'm trying to make a better effort to eat breakfast at home (cheaper+healthier).

Dollop is another good option in the area for coffee/pastries, and I prefer their Metropolis coffee.

I feel really bad for the employees at F&O. I fear that poor management is going to cost them their jobs.

Yeah, the croissants are Local Root are not large, but they are amazing light and tasty.

I live very close. The smell early in the morning pulls you in.

Not sure what days they have the breakfast sandwiches. I know I had one last week. Very good.

Cross-posted in Comings and Goings, but e-mail blast said they'd be open at noon Thursday.

Here's hoping they make it. F&O was a pioneer. They have non-Chinese pignoli, for F's sake! Their brownies are to die for. Their breads are great.

I hope they survive.

I, too, hope they survive, but they cannot continue to give the vibe they are on life support.

When Eataly opens, they'll be history.

My partner and I went to Fox and Obel yesterday and we were shocked at what we saw. The seafood section was downright shockingly anemic.

I wanted to look at the spirits section because when I was there on July 4, they did not have the normal broad selection of gins that they used to have. It was the same yesterday.

Finally, the deli meats section was bizarre. There was nothing essentially in the case. They said it was because they had been having refrigeration problems but who knows?

When we left, I thought to myself, "I can't imagine they'll be open much after Labor Day."

The problem is that the sort of problems they had are too tough to shake.

I used to love the place, but there is just no way I'm going back.

Walking around the neighborhood, it seems that most people feel the same. I don't remember the last time I saw people walking around with FO bags.

It may survive a while as a cafe on business going to and from the pier, but the locals have abandoned it.

DML wrote:It may survive a while as a cafe on business going to and from the pier, but the locals have abandoned it.

Aside from all else, are they hurt by the Mariano's in Benton Place?

riddlemay wrote:

DML wrote:It may survive a while as a cafe on business going to and from the pier, but the locals have abandoned it.

Aside from all else, are they hurt by the Mariano's in Benton Place?

Can't imagine that would be an impact. For the neighborhood, Dominick's at Illinois/Columbus and Whole Foods (Huron?) are the real options.

We used to get our meat/fish at FO. Now we are going to look at Randolph Street.

email received from F&O last week:

Dear Fox & Obel Customer –

This communication is, first and foremost, a sincere thank you for your support. As you have probably realized, we have been experiencing more than our share of negative circumstances leading to far less-than-ideal store conditions. And for this, we apologize.

Fox & Obel has unfortunately experienced a number of challenges over the summer, including our forced shutdown, to which we responded by more than complying with the city’s requests. We have also had a series of equipment mishaps - many brought on by the hot weather – including, but not limited to, the loss of refrigeration and hot water. In response to all of this, we erred on the side of safety by removing the product from the shelves. Due to the unique nature of our products, many are provided by small vendors with longer production and consequent delivery times. We are confident you will start seeing improvement over the next several weeks as our vendors are able to replenish your favorite products, and we are able to re-organize our display shelves.

Once again, thank you for your support, and your patience. Please bear with us as we work to get our shelf conditions back in order and re-dedicate ourselves to providing the exceptional variety and high level of service you, our loyal customers, deserve.

Most Sincerely,

The Fox & Obel Team

=R=

ronnie_suburban wrote:email received from F&O last week:

Dear Fox & Obel Customer –

This communication is, first and foremost, a sincere thank you for your support. As you have probably realized, we have been experiencing more than our share of negative circumstances leading to far less-than-ideal store conditions. And for this, we apologize.

Fox & Obel has unfortunately experienced a number of challenges over the summer, including our forced shutdown, to which we responded by more than complying with the city’s requests. We have also had a series of equipment mishaps - many brought on by the hot weather – including, but not limited to, the loss of refrigeration and hot water. In response to all of this, we erred on the side of safety by removing the product from the shelves. Due to the unique nature of our products, many are provided by small vendors with longer production and consequent delivery times. We are confident you will start seeing improvement over the next several weeks as our vendors are able to replenish your favorite products, and we are able to re-organize our display shelves.

Once again, thank you for your support, and your patience. Please bear with us as we work to get our shelf conditions back in order and re-dedicate ourselves to providing the exceptional variety and high level of service you, our loyal customers, deserve.

Most Sincerely,

The Fox & Obel Team

=R=

Got it too - and they've confirmed some equipment and availability issues that were apparent for long-time shoppers. We've really tried to give them second (and third, and fourth) chances, but given the alternatives within walking distance or a short drive, it's hard to justify coming back unless they really step their game up. Unfortunately the burden is on them to show that they're changing their business approach over the continued downward decline of the past several years.

Otherwise, their only merit except for the truly unique products that an industrious shopper can find online is location, which in a high-density neighborhood with a heavy tourist % might be enough, but that's a far cry from their original (now forgotten) mission by the founders. It's not like it's 2001 and F&O was one of the few places with Fage yogurt or Irish butter.

@ DML: you forgot Treasure Island .

Just filed for Chapter 11 bankruptcy protection per the Trib's web site.

http://www.chicagotribune.com/business/ ... 1263.story

^^ Bankruptcy by itself isn't ideal but not the end of the world; certainly it's no shame anymore for an ongoing business in today's economic climate if it's part of a strategy to get back to financial solvency. But unfortunately this announcement doesn't do much to restore confidence after their email blast reporting "more than our share of negative circumstances". I'm surprised they did Chapter 11 rather than liquidation. It will be curious to see they have a bankruptcy plan or a buyer is stepping in to assume the business.

sdrucker wrote:^^ Bankruptcy by itself isn't ideal; certainly no shame anymore for an ongoing business. But unfortunately this announcement doesn't do much to restore confidence after their email blast reporting "more than our share of negative circumstances". I'm surprised they did Chapter 11 rather than liquidation. It will be curious to see they have a bankruptcy plan or a buyer is stepping in to assume the business.

I agree. And it's not exactly contrite to send out the apology email, followed up a few days later with a bankruptcy filing. If they were hoping to right the ship with their customers, this pretty signifcant bit of withholding probably isn't going to help. But now, in addition to all their customers being disappointed, their creditors can all be pissed, too.

I'm sorry but anyone who continues to shop here must be completely devoid of alternatives, the ultimate masochist or both. This is a hard store to feel good about supporting. I don't live nearby but if I did, I'd invest some energy in avoiding F&O.

=R=

It's not a matter of being contrite, it's also disingenuous to use the weather as an excuse for understock issues when the bankruptcy filing cited by the Trib today mentions over 100 creditors, and there were previous media stories (see my post #104 on this thread, summarizing a Crain's article I linked in #102) that had brought up supplier issues due to credit issues.

One interesting thing I noted in the Trib: supposedly they owe almost $350K to Sysco, the food distributor. I'm admittedly not familiar with the supply chain of the supermarket business, but I am surprised that a supposed high-end grocery, charging premium prices, is buying supplies from a distributor known for food service and institutional (hospitals, schools, etc.) business.

Regardless, apparently F&O has become a parody of itself. I almost feel guilty posting this kind of thing, since it's so relentlessly negative, but unfortunately the record speaks for itself over the past few years. IMO there's little sadder than a family business or a closely held one that starts out with laudable intentions, getting run into the ground by successors.

And to think that we chose living in Streeterville over River North in 2001 partially because of what we thought it represented for the area LOL....

I'm thinking Ari Fox and Ken Obel cringe mightily whenever they read these items. Wish they'd never sold it - the original idea was so fabulous. That phony "apology" email by the current "Fox & Obel Team" reads more as petulant and sullen than apologetic to me.

I just attended a meeting of Streeterville Organization of Area Residents which discussed the redevelopment of the building.

The owner, architect, and project manager for the construction all spoke.

The building is going to be turned into apartments with a retail space on the base.

They would very much like to keep a high end grocery store in that location. They said other grocers had expressed an interest in the space.

Other than noting that Fox and Obel had filed for bankruptcy today, they would not say anything specific about F&O.

SDrucker,

I believe that by choosing from Sysco's product line carefully, you can save a huge amount of money without affecting quality. So why not? If I can save $5 on a case of 40 gallon plastic garbage bags, and use 20 cases a month, why not? Same goes for plastic wrap. Certainly, F/O used a boatload of paper products and deli containers of every shape and size. Some of the items I get from Sysco include Plugra butter, frozen wild Gulf shrimp, Kosher salt, the same Roland gourmet products that fancier suppliers sell (European Imports, etc...). They are also the only supplier that I know of carrying 40% heavy whipping cream. I also use them for sugar, salad oil, flour and other commodities. Rarely do I get center of the plate products from them, but I will use them for some basic produce items like lemons, onions, celery and Russet potatoes.

My guess is that The Peninsula, Ritz,and Four Seasons get Sysco deliveries several times a week. I know for a fact that Les Nomades uses them, because I asked my sales rep who his other accounts in the neighborhood are.

Thanks, Ronnie! I don't know the food business except as a consumer, but it makes a lot of sense that along with selling general commodities and nitty-gritty packaging things, Sysco would branch out into more esoteric or premium products like some of the ones you cite. They probably bring some economy of scale to it that small suppliers might not.

But in the area of the news just keeps on coming, Crain's is running an article today on William Bolton, head of the Volpes management group that owns Fox and Obel, which mentioned that F & O investors have not only accused him of diverting $200,000 of their investment for his own personal use, but they've filed documents stating that he's admitted redirecting it to his stake in Zapatista (the latter part of the story is behind their pay wall, but they link to a court document with the filing at http://www.scribd.com/doc/169722329/201 ... -of-Interr.

The Crains story:
http://www.chicagobusiness.com/article/ ... 6589790C0R

I debated whether to post this, but with Crain's carrying it, other media may follow as well.

"Thanks, Ronnie! I don't know the food business except as a consumer, but it makes a lot of sense that along with selling general commodities and nitty-gritty packaging things, Sysco would branch out into more esoteric or premium products like some of the ones you cite. They probably bring some economy of scale to it that small suppliers might not."

You're welcome SDrucker!

FYI, a year or two ago, Sysco purchased European Imports, the above mentioned specialty food distributor previously owned by the Binny's Binsteins. Every item in the EI Catalogue, is now available from Sysco, with the exact same item numbers being used.

ronnie_suburban wrote:

sdrucker wrote:^^ Bankruptcy by itself isn't ideal; certainly no shame anymore for an ongoing business. But unfortunately this announcement doesn't do much to restore confidence after their email blast reporting "more than our share of negative circumstances". I'm surprised they did Chapter 11 rather than liquidation. It will be curious to see they have a bankruptcy plan or a buyer is stepping in to assume the business.

I agree. And it's not exactly contrite to send out the apology email, followed up a few days later with a bankruptcy filing. If they were hoping to right the ship with their customers, this pretty signifcant bit of withholding probably isn't going to help. But now, in addition to all their customers being disappointed, their creditors can all be pissed, too.

I'm sorry but anyone who continues to shop here must be completely devoid of alternatives, the ultimate masochist or both. This is a hard store to feel good about supporting. I don't live nearby but if I did, I'd invest some energy in avoiding F&O.

=R=

I took one for the team and walked through on the way home today. Oddly enough, they're still doing a steady business, if not quite one with any lines for anything.

The old extended dairy case near the cafe was completely turned off, with a small milk and refrigerated selection by the prepared foods (which also was partially shut down and maybe 1/3rd smaller). As another poster noted, the seafood selection was also tiny compared to the past, with almost no fresh poultry. Finally, they were out of the fresh herbs, and the lettuce and prepackaged berry selection was almost zero.

Oh, and maybe it was the time of day, but the cafe no longer had the breakfast menu up, or to go stuff in their refrigerated case

Some of their stock - things like granola, teas, and packaged dry mixes - looked kind of normal, as did the more basic breads in the bakery. But as the Chapter 11 sinks in, we'll have to see what happens next.

I'm simply amazed that the sales reps allowed this to continue.

When I used to do work for another provider, they would file suit when the amount due got to be around $10,000.00.

The sales reps must be taking a massive hit on this one, and it is their own fault.
If a client is not paying, you need to cut them off.

Hi- This reminds me of the Sun Times when employees were being told that they had to cut corners because the newspaper was loosing money, while Mr. Black had his hands in the till.

DML wrote:I'm simply amazed that the sales reps allowed this to continue.

When I used to do work for another provider, they would file suit when the amount due got to be around $10,000.00.

The sales reps must be taking a massive hit on this one, and it is their own fault.
If a client is not paying, you need to cut them off.

I know. It's utterly bizarre seeing a company getting out that far. We typically put someone on COD terms as soon as they exceed their credit limit or become more than 30 days past due. Why would you keep selling someone who isn't paying? I mean, if they're not paying, you're not really selling. At that point, you're just giving.

=R=

Well, you can make it up in volume!