Report: Starbucks May Try for Israeli Market a Second Time

YERUSHALAYIM

starbucks delivery

Starbucks coffee shops are ubiquitous on the streets of New York and Los Angeles – and that could be the situation in Yerushalayim and Tel Aviv, as a group of investors reportedly is seeking to bring the worldwide coffee chain to Israel – for the second time, after franchisees closed down the branches that they had opened here several decades ago.

The investors, who control the Fox Group – best known for its chain of “fast fashion” clothing stores – are said to be seeking alternatives to apparel, sales of which have been hurt by international competition, as more and more Israelis purchase clothing online. The group is examining other food and restaurant options as well, Yediot Acharonot reported, but Starbucks is “high on their list of preferred investments,” given the affinity Israelis have for coffee, and their familiarity with Starbucks from extensive travel abroad. It should be noted that the chain has outlets in nearly all of the countries bordering Israel, as well as almost every country in Europe.

This would not be the first time Israel would host Starbucks coffee shops; there were several here in the 1990s, but the chain closed down after several years due to poor sales. Since then there has been much speculation as to why Starbucks has had amazing success almost everywhere in the world – even in hard-to-crack markets like China, where it has more than 3,500 outlets.

Many pundits said that the menu, offerings, and style of the chain was different than Israelis were used to, and other explanations were offered.

According to the Yediot report, the Israeli investors have been in contact with Starbucks officials to ensure that they are able to offer the kinds of products Israelis will want, so that the chain is a success this time around.

To Read The Full Story

Are you already a subscriber?
Click to log in!