Burger King Israel
| Industry | fast-food restaurant |
|---|---|
| Founded | Israel (1993) |
| Defunct | 2010 |
| Headquarters | |
Number of locations | 0 |
Area served | Israel |
| Products | hamburgers, chicken, french fries and soft drinks |
Number of employees | 0 |
| Parent | Burger King |
Burger King Israel, was the Israeli subsidiary of Burger King. Burger King first entered the Israeli Market in 1993. It eventually closed in 2010, due to a merger with Burger Ranch. In July 2013 it was announced that Burger King is attempting to re-enter Israel.
History
First Entrance Into Israel
Burger King first entered Israel in 1993. At the time, Yair Hasson, Meshulam Riklis and Kamor Motors, together held all the shares. In 1998, Hasson and Riklis bought Kamor's share in the chain according to a company valuation of $14.8 million, and in 2001 Hasson sold his share to Riklis.
Until 1998, the chain was run by Kobi Hayoun who served as CEO. Hasson served as the chain's chairman in Israel. Upon Hasson's departure, things took a turn in the company's management, which included frequent changes in CEOs within several years. Each of the CEOs brought in tried to change the chain's strategy, which eventually led to its collapse after Burger King slowed down the deployment of its branches and its competitors took advantage of the situation and began gaining momentum.
In 2003, Burger King filed for suspension of proceedings in Israel after accumulating NIS 98 million (about $27 million) in debts. Brothers Eli Orgad and Yuval Orgad bought the chain for NIS 30 million ($8.3 million). At the time of the purchase, the company had 56 restaurants in Israel and was considered inferior to its competitors.
In 2008, Hasson, who at the time served as the chairman of Global Brands (the company which owned the franchise to market Domino's Pizza in Switzerland, Luxemburg and Lichtenstein) tried to buy Burger King. The talks failed, and the Burger Ranch chain was eventually sold to the Orgad brothers as well.
Dissolution
In 1997, 74 percent of Burger Ranch was acquired by Paz Oil Company Ltd.. At the end of 2001, Paz completed the acquisition, becoming 100 percent owners of the chain. In 2006, Paz sold the chain to the Israeli businessman Yossi Hoshinski. In early 2008 Hoshinshki died of a heart attack, and the company went into bankruptcy. In 2008, Orgad Holdings bought out Burger Ranch for over NIS 100 million.
In 2010, it announced that Orgad Holdings would be re-branding Burger King Israel as Burger Ranch. At the time the two chains were merged there were 55 Burger Ranches and 52 Burger Kings, creating 107 Burger Ranches[1]
Re-emergence Attempt
In July 2013 Burger King announced it is attempting to return to Israel, three years after leaving the country.
Burger King's desire to re-enter Israel stems from ownership changes in the international company. In late 2010, the chain was acquired by Brazilian private equity fund 3G Capital for $4 billion. The buyers support an aggressive strategy of entering markets Burger King is currently not active in, in a bid to eat away at the market share of its competitors, led by McDonald's
Discussions for a franchise owner include Yair Hasson, formerly Burger King's franchisee in Israel. If the negotiations are successful, Burger King is expected to open 12 restaurants on the first year it resumes its activity in Israel, and 15 the following year. The chain's deployment will then be expanded.[2]
Kashrut
Under Burger Kind's first stint in Israel there was a mix of both kosher and non-kosher locations. It is unclear what the status will be of the new franchises.
