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Burger King to lose presence in Israel
May 10, 2010
Israel apparently is a tough market for some U.S. quick-service chains. Burger King is the latest brand to shut down operations in the country, with its stores scheduled to be converted to another brand of September.
Burger King Europe GmbH and A. Orgad Holdings Co. Ltd. (Orgad) that operate 55 Burger King franchised restaurants in Israel have both amicably agreed to terminate all franchisee agreements. Forty-seven of Orgad's owned and operated restaurants will cease operations by June 14, another by June 30 and the remaining by Sept. 6.
These restaurant closures do not impede Burger King Europe GmbH growth plans for Europe and the Middle East as the company remains wholly committed to growing the brand in these regions, the company said in a statement.
The Jerusalem Post reports that Orgad, the sole Burger King franchisee in Israel, will rebrand its 52 Burger King stores as Burger Ranch, a more popular local chain. Orgad has owned the Burger King stores since 2005 and bought the 55-unit Burger Ranch chain last year.
From the story:
"All the research carried out over the past few months shows beyond a doubt that the taste of Burger Ranch is the preferred taste for most Israelis," Orgad directors Eli and Yuval Orgad were quoted as saying in the Hebrew media.
U.S.-based QSRs Starbucks, Dunkin' Donuts and Wendy's also failed to establish a presence in Israel, but none had the longevity of Burger King.
Other QSRs in Israel include KFC, McDonald's and Subway. KFC and McDonald's both entered the country in 1993 and serve a kosher menu. KFC has about 10 stores, and McDonald's more than 130. Last year, McDonald's announced it was adding its McCafé coffeehouse concept to its stores. Subwayhas one unit in the country.
Updated: Includes statement from Burger King.
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