Fauchon is a French gourmet food and delicatessen company that was founded in 1886 in Paris, France. Fauchon is considered a major reference in contemporary French gourmet foods,Le Nouvel Économiste, 22 September 2011 "Fauchon, Hédiard : une histoire de goût" and it had 81 outlets in operation around the world as of 2019.
History Origins from 1886 until 1952 The founder of the Fauchon brand, Auguste Fauchon, was born in Ellon, Calvados, in 1856. He moved to Paris in 1880, where he began to work as a street vendor, moving on to become a wine and spirits merchant. In 1886, at the age of 30, he opened a fine foods outlet on Place de la Madeleine in the 8th arrondissement of Paris.
The quality of the products made by Fauchon and its numerous approved suppliers quickly made it well-known internationally,Le Journal du dimanche, 8 February 1998, "Fauchon veut retrouver son lustre d’antan" by Jean-Michel Salvator and it came to symbolise French-style luxury. In 1968, French radicals chose to raid Fauchon and distribute foie gras to the poor.The Daily Deal, 21 May 2002, by Matt Miller "Pass the foie gras" During the Second World War, restrictions and rationing made business difficult for the company. Auguste Fauchon died in 1945, and his children sold the company in 1952.Les Échos, 28 August 2006. "Fauchon célèbre 120 ans de gourmandise"
From 1952 to 1998: exploring new opportunities In 1952, Joseph Pilosoff, the former owner of "Chocolat Poulain", "Ciseaux d'argent" in Saint-Cloud and "Aux 100000 chemises" in Paris, took over Fauchon and built up a partnership with Air France. He also expanded the name abroad, opening new Fauchon outlets including in Japan at Takashimaya department stores in 1972. When Joseph Pilosoff died in 1981, his daughter took over at the head of the company. However, she too died soon thereafter, in December 1985, in a fire on the company premises.
In 1986, Joseph Pilosoff's granddaughter, Martine, and her husband, Philippe Prémat, became the owners of Fauchon.Le Figaro, no. 16643, 16 February 1998, interview with Martine Prémat Martine Prémat's management proved difficult. Turnover had been flat since the beginning of the decade at around 250 million French francs (some €38 million), with losses of FF5 million in 1991, FF4.7 million in 1993 and FF11.9 million in 1996, and debt standing at FF73 million (€11 million) and a negative net equity of FF4.9 million.Capital, May 1997, pages 54–55, by Eddy Murano, "Succès et Dérapages – Fauchon, un épicier fauché"
The company strategy to sell its products in mass-market superstore chains such as Carrefour and Auchan, was sharply criticised, and the management was reproached with running the risk of spoiling the company's image, making it commonplace,Gault Millau, no. 327, February–March 1998, pages 31–34, "Enquête : La vérité sur Fauchon" and was also criticised for making management errors.
Despite attempts to expand the group in the 1990s by opening shops in Geneva and Saudi Arabia – only to close them a few years later – or by sponsoring the Paris Dakar rally, Martine Prémat finally sold the company to Laurent Adamowicz for FF240 million (€36.6 million) in March 1998,Le Figaro, 31 December 2005, "Fauchon, la Griffe gourmande"Europe 1 radio, Le Journal de l’Économie, 4 February 1998, 6:30 am, by Jean-Michel Salvator including the freehold of the buildings on Place de la Madeleine, sold the following year.OGIC, promotion immobilière, page visited 11 October 2009
From 1998 to 2003: wide expansion of activities
Laurent Adamowicz, a former investment banker and business school graduateLes Echos newspaper, Issue #19002 of 3 October 2003, page 50, Distribution, Entreprise et Marchés, En Vue, Laurent Adamowicz with experience in the field of luxury products, positioned the brand on the gourmet foods market. He launched new products"Tea with Sympathy", Financial Times, 22–23 January 2000, by Holly Finn and ad campaigns, renovated points of sale, withdrew the brand from mass-market outlets and renovated the historical Tea Salon on Place de la Madeleine. He started a new partnership with Air France, and promoted young pastry chefs, like Pierre Hermé, Sébastien Godard, Christophe Adam, Dominique Ansel.
In 2000, Fauchon became a growing and profitable company again, with 90 million Euros ($135 million) in sales and 5 million ($7.5 million) in EBIT for 2002.Management, December 2003, "Fauchon finds the taste of profit" Fauchon opened new stores in Japan, in South Korea, Taiwan, the Middle East, Europe, and finally in the United StatesLes Échos, no. 17579, 5 February 1998, page 18, "Waldo veut développer Fauchon aux États-Unis" (Waldo wants to develop Fauchon in the United States)The New York Times, Fabricant, Florence (16 August 2000), "Fauchon Opens A Market in Midtown"Les Échos, no. 17619, 2 April 1998, page 19, "Le nouveau PDG de Fauchon veut implanter l'entreprise aux États-Unis" ("The new Chairman and CEO of Fauchon wants to bring the company to the United States")La Tribune, 2 April 1998, page 11, "L'épicerie fine Fauchon veut conquérir le marché américain" where it never had a store before, investing FF60 million (€9.2 million) in five years in the US market,Le Monde, issue #16493, 5 February 1998, "La vente de Fauchon relance les grandes manœuvres sur le marché de l'épicerie de luxe. Le repreneur, la société Waldo, veut développer la marque aux États-Unis" ("The buyer of Fauchon, the company Waldo, wants to develop the brand in the United States") with a diversified investor group that included Michel Deroy and Jean-Francois Toulouse, former owners and managers of Dock de France supermarkets, the investment fund Matignon Investissements et Gestion, the publicly listed UK fund Intermediate Capital Group, and Barclays Capital Development France.La Tribune newspaper, 2 April 1998, article page 11, "L'épicerie fine Fauchon veut conquérir le marché américain" ("The gourmet epicerie Fauchon wants to conquer the American market") Barclays Private Equity France, a subsidiary of the Barclays plc Group, backed Laurent Adamowicz in his takeover of Fauchon to participate in its development in France and abroad.
In France, the acquisition of Flo Prestige delicatessens for €39 million increased the number of outlets in Paris by 12 stores. In 2003, the Fauchon network included 650 franchises, with 16 of its own shops, three in New York and 13 in Paris.Le Figaro, 20 March 2003, "Laurent Adamowicz redéploie Fauchon"Le Parisien, 1 October 2003, "Fauchon s’installe chez Flo et mise sur la proximité"
The acquisition of the Flo outlets in Paris in 2002 and the opening of three shops in New York led to a sharp rise in income between 1998 and 2004, but a decline in Fauchon's net profits. In the spring and summer of 2003, Fauchon, heavily in debt, was affected by the collapse of the tourism market with the combination of several events: the Iraq War and the fall of the Saddam Hussein regime in April 2003, followed in May 2003 with the severe acute respiratory syndrome (SARS) virus epidemic, and then the unprecedented heat wave in Europe that hit France particularly hard with over 15,000 dead in August 2003.
In January 2004, Laurent Adamowicz sold his interest in the company and left his CEO's office to Michel Ducros, one of the sons of Gilbert Ducros (1928–2007), the founder of the Ducros spice business."Les nouvelles recettes de Michel Ducros", Le Point, Issue #1665, 17 January 2007"Quand Ducros se jette à l’eau" (When Ducros takes a dive). L'Express, 9 August 2007, page 44-46
Since 2004
From 2004 onwards, Michel Ducros bought out most of the other shareholders, private and institutional, and will acquire between 2005 and 2009 all of the shares held by the Barclays Group, the 36% stake owned by La Compagnie du Bois sauvage, the stake held by Matignon Investissement & Gestion,Le Point, no. 1933, 8 October 2009, "Michel Ducros est propriétaire de plus de 90% de son affaire" and lastly the minority shareholdings.Le Point, no. 1933, 8 October 2009, "Fauchon version fashion" "I am an entrepreneur, I invest in the long term," he explained.Le Point magazine, Issue #1933, Article of 8 October 2009, "Michel Ducros est propriétaire de plus de 90% de son affaire"Le Point magazine, Issue #1933, Article of 8 October 2009, "Fauchon version fashion"
In 2004, the new shareholders adopted a strategy that aimed to boost profits by selling off those assets they deemed to be non-strategic, closing stores in Russia and the United States,New York Times, 20 May 2005, by Elaine Sciolino, "Fauchon's Food Empire Cedes Territory to a Rival" selling their ready-prepared meal tray business to the Fleury Michon group,Les Échos, no. 19268, 19 October 2004, "Fleury-Michon acquiert les plateaux-repas de Fauchon" and finally selling the Fauchon Paris stores to the company's rival Lenôtre.Le Figaro, 19 May 2005, "L’épicerie de luxe vend neuf boutiques à Lenôtre. Fauchon a perdu la bataille de Paris"; official Lenôtre website Within the space of 6 years, Fauchon cut back its workforce by 700 employees, from 900 to 200 people.L'Express, 17 January 2008, page 75 "Fauchon, L'épicier chic et choc", by Corinne Scemama
Michel Ducros revised Fauchon strategy with all its suppliers and set up a strict sourcing, to promote the French savoir-faire and develop exclusive recipes. Fauchon continues to produce most of its own breads, cakes, pastries and delicatessen products on its premises (in the Paris suburb of Courbevoie for cakes and pastries).
In 2013, after the departure of the CEO Isabelle Capron,Le Figaro, 15 March 2014, "Divergences a la tete de Fauchon" (Conflicts at the head of Fauchon) Michel Ducros appointed Eric Vincent as CEO, which announced ambitious plans for the company, aiming to have 100 outlets by 2017 (from 63 in 2013), mostly in franchises.
Despite the lack of success in the United States and China in 2009,Le Figaro, 14 October 2007, "Fauchon veut ouvrir treize magasins en Chine" Fauchon still aimed at international development on several big markets (Japan, Middle East, Asia and South America). Fauchon had some 60 stores and restaurants around the world in 2013. Fauchon reinforced its presence through Asia in Hong Kong in 2014 and Thailand, and invested in North America, and the Middle East, where new openings are concentrated.
On the verge of bankruptcy in 2004 (with losses of €30 million), Fauchon made its way back to a smaller loss in 2009, and in 2013 posted an operating profit of €900,000 on sales of €50 million. In Fauchon employed 270 people, operated 76 retail outlets and posted sales revenue of €180 million (including sales by franchises), 80% of which in international markets."Fauchon veut doubler de taille en cinq ans" , Capital, 18 September 2013 In June 2020, after many years of poor financial performance, Fauchon went into administration.
2015: creation of Fauchon Hospitality In September 2015, Fauchon adopted a new strategy and began developing a luxury hospitality branch. In March 2018, the company launched Fauchon Hospitality to develop a network of luxury boutique hotels around the world, with a focus on Japan, Europe and the Middle East. Fauchon Hospitality is headed by Jacques-Olivier Chauvin, previously CEO of Relais & Châteaux and SVP of Van Cleef & Arpels. Samy Vischel, president of Fauchon, is vice president of Fauchon Hospitality. Bernard Lambert is the international business advisor of the project; he was the president of the SBM and the Méridien company.
Fauchon partnered with the upscale hotel group Esprit de France, a subsidiary of Compagnie Lebon, to create and co-manage the first Fauchon L'Hôtel on the Place de la Madeleine in Paris in a building acquired by Qatar National Bank. It opened 1 September 2018. The five-star hotel is affiliated with Leading Hotels of the World.