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Burger King Israel

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Burger King Israel
(ברגר קינג)
IndustryRestaurant
GenreFast food
FoundedIsrael (1993-2010, 2016-present)
Headquarters
Israel
Number of locations
17
Area served
Israel
Key people
Pierre Besnainou (Chairman)
Productshamburgers, chicken, french fries, desserts and soft drinks
Number of employees
TBA
ParentBurger King
Websiteburgerking.co.il
Hebrew logo used until 2003.

Burger King Israel (Hebrew: ברגר קינג) is the Israeli franchise of international fast food chain Burger King. Burger King first entered the Israeli market in 1993. It eventually closed in 2010, after the franchise owner Orgad Holdings purchased local chain Burgeranch and converted all Burger King locations in the country into Burgeranch locations. In July 2013, it was announced that Burger King was attempting to re-enter Israel. Initial discussions with its original Israeli franchise owner Yair Hasson were unsuccessful, and it finally secured re-entrance to the country by entering into a deal with a French company. The first restaurant, under the new franchise group opened in February 2016, at Rabin Square in Tel Aviv. As of 2024, there are 17 branches in the country, including 13 in Tel Aviv and its suburbs. Out of all these locations, 10 are Kosher branches.[1]

History

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Initial run, 1993–2010

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Burger King first entered Israel in 1993,[2] under the ownership of Yair Hasson, Meshulam Riklis and Kamor Motors.[3] In 1998, Hasson and Riklis bought out Kamor for USD$14.8 million.[4] In 2001 Hasson sold his share to Riklis, making Riklis the sole owner.[5]

Upon Hasson's departure, the company's management underwent several changes, including several new CEOs over the next few years. Each CEO tried to change the chain's strategy, all of which proved ineffective. Eventually, this led to the franchise's collapse after Burger King slowed down the deployment of its branches. In 2003, Burger King Israel had accumulated ₪98 million (US$27 million) in debt. Brothers Eli and Yuval Orgad bought the chain's fifty-six restaurants for ₪30 million (US$8.3 million).

Burger King Israel was purchased by Orgad Holdings after declaring bankruptcy in 2005, the locations remained open.

The owner of Burgeranch, Yossi Hoshinski, died of a heart attack in early 2008; shortly thereafter, Burgeranch entered bankruptcy.[6] Orgad Holdings bought Burgeranch from bankruptcy for over NIS 100 million.[7] In 2010, it was announced that Orgad Holdings would be re-branding its Burger King locations as Burgeranch. At the time the two chains were merged there were 55 Burgeranch locations and 52 Burger King locations, creating 107 locations in the country.[8]

Failed re-emergence, 2013–14

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In July 2013 it was announced that Burger King was attempting to return to the Israeli market, three years after the dissolution of its franchise in the country.[9] The company's desire to re-enter Israel stemmed from recent ownership changes in the parent company. In late 2010, the chain was acquired by Brazilian private equity fund 3G Capital for US$4 billion. The new ownership enacted an aggressive strategy of entering markets Burger King was currently not operating in, in a bid to chip away at the market share of its competitors. Discussions for a new franchise owner included Yair Hasson, Burger King's former franchisee in Israel. If the negotiations had proved successful, twelve new Burger King restaurants were expected to open within the first year it reentered the Israeli market, with fifteen more set to open in 2014.[4]

In November 2014, news began to circulate that Burgeranch was in talks to sell fifty-one of their seventy-two locations to a new business group, including Hasson, that would convert them back into Burger King locations. The remaining twenty-one locations would be shut down under the agreement.[10] The deal fell through.

Re-emergence, since 2015

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In June 2015, a group of investors, including Pierre Besnainou, obtained the Israeli franchise for the brand.[11] Fifty branches around the country are planned within five years, at an initial investment of US$12 million.[12] The first branch opened on 1 February 2016 across from Rabin Square in Tel Aviv,[13] which is not kosher.[14] On 9 March their second location opened, in the Ramat HaHayal neighborhood in Tel Aviv. As of 2020, there are 11 branches in the country.

On 6 April and 11 April 2016, the third and fourth locations opened, in Dizengoff Center and Azrieli Center respectively. Both of these locations were kosher, making half of the locations in Israel kosher.[15] In 2017, an additional kosher branch was opening in Hod Hasharon and an unkosher branch in Beersheba.

During the Jewish festival of Hanukkah, Jews traditionally indulge in eating oily and fried foods—such as sufganiyot (Hebrew: סופגניות), an Israeli round jelly doughnut—in connection to the miracle of the cruse of oil. In 2016, Burger King Israel introduced their "SufganiKing" (Hebrew: סופגניקינג): a Whopper with two sufganiyot in place of the bun. The SufganiKing was available during Hanukkah 2016 (December 25, 2016 – January 1, 2017),[16] and costed ₪14.90 (US$4.00). Burger King Israel's chief executive officer, Steve Benchimol, said of the SufganiKing, "This matching of two popular Israeli food items was inevitable for us. We’re proud to be able to end 2016 on a creative, festive note." Burger King Israel employees who had eaten the SufganiKing called it "delicious".[17]

Controversy

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A view of the Ma'aleh Adumim settlement

In the middle of 1999, a geopolitical dispute with the global Islamic community and Jewish groups in the United States and Israel arose over an Israeli franchisee opening stores in the West Bank. When Burger King franchisee in Israel, Rikamor, Ltd., opened a store in the West Bank settlement of Ma'aleh Adumim in August of that year, Islamic groups, including the Arab League and American Muslims for Jerusalem, argued that international Burger King parent Burger King Corporation's licensing of the store helped legitimize the illegal settlement.[18][19][20] Beyond the called-for Islamic boycott of the company, the Arab League also threatened the revocation of the business licenses of Burger King's primary Middle Eastern franchise in the twenty-two countries that are part of the league's membership.[21]

Burger King Corporation quickly pulled the franchise license for that location and had the store shuttered explaining that Rikamor, Ltd. had violated its contract by opening the location in the West Bank.[22] Several American-based Jewish groups issued statements that denounced the decision as acceding to threats of boycotts by Islamic groups. Burger King Corporation issued a statement that it "made this decision purely on a commercial basis and in the best interests of thousands of people who depend on the Burger King reputation for their livelihood".[23][24]

See also

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References

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  1. ^ "סניפים - ברגר קינג ® | רשת ההמבורגרים של ישראל".
  2. ^ "Burger King Announces Plans To Open 50 Restaurants In Israel". Apnewsarchive.com. 1993-10-13. Retrieved 2017-11-07.
  3. ^ HighBeam
  4. ^ a b Yefet, Orna (July 18, 2013). "Burger King in talks to return to Israel". Ynetnews. YNet. Retrieved 14 December 2013.
  5. ^ Peled, Shachar (2003-12-04). "King of the burger - Haaretz - Israel News". Haaretz.com. Retrieved 2017-11-07.
  6. ^ "Burger Ranch | Saciol Profile". Saciol.com. 2014-01-01. Archived from the original on 2014-08-19. Retrieved 2017-11-07.
  7. ^ "Burger Ranch to take over all local branches of Burger King - Israel - Jerusalem Post". Jpost.com. 2010-05-11. Retrieved 2017-11-07.
  8. ^ Eglash, Ruth (May 11, 2010). "Burger Ranch to take over all local branches of Burger King". The Jerusalem Post. Retrieved 14 December 2013.
  9. ^ Dolsten, Josefin (2013-07-19). "Burger King making a comeback in Israel". The Times of Israel. Retrieved 2017-11-07.
  10. ^ No bull? Burger Ranch may shutter in reported Burger King deal - Retrieved 26 November 2014
  11. ^ Burger King is Returning to Israel Archived October 19, 2015, at the Wayback Machine
  12. ^ 50 branches are planned in the first five years at a $12 million investment Archived November 20, 2015, at the Wayback Machine
  13. ^ Burger King is back in Israel - Cofix and Burgeranch team up
  14. ^ The (Burger) King returns to Israel
  15. ^ BREAKING: Burger King Makes its Kosher Return to Israel with 2 New Locations
  16. ^ Quirk, Mary Beth (2016-12-06). "Burger King Selling A Doughnut Burger For Hanukkah". Consumerist. Consumer Reports. Archived from the original on 2016-12-07. Retrieved 2016-12-07.
  17. ^ "Burger King serves up Hanukkah donut Whopper". The Times of Israel. Jerusalem: David Horovitz. 2016-12-06. Archived from the original on 2016-12-07. Retrieved 2016-12-07. The 'SufganiKing' is a cross between the traditional festival jelly filled sufganiyot and a hamburger
  18. ^ BBC News (1999-08-10). "Middle East protest grows against burger giant". BBC. Retrieved 2008-06-04. The Arab League is to consider backing a campaign to force the closure of a fast-food outlet in a West Bank Jewish settlement built on land seized during the 1967 war.
  19. ^ Candice Williams (2007-07-07). "U.S. Muslims Call For Burger King Boycott". Israel Faxx. Archived from the original on January 2, 2009. Retrieved 2008-06-27. A Washington-based Muslim group, American Muslims for Jerusalem, says it is calling on Muslims and Arabs to immediately boycott the fast food restaurant chain, Burger King, for a second time. In a news conference, the group says the Miami-based fast food
  20. ^ United Nations Office for the Coordination of Humanitarian Affairs (OCHA) OCHA - occupied Palestinian territory (oPt) Archived 2014-09-13 at the Wayback Machine
  21. ^ Megan Steintrager (2000-11-05). "Middle East Muddle". Restaurant Business Magazine. Archived from the original on January 2, 2009. Retrieved 2008-06-24. ... and the Arab League has threatened to revoke contracts for 84 Burger Kings throughout the Middle East.
  22. ^ Deborah Sontag (1999-08-30). "Burger King Outlet in West Bank Becomes a Political Dispute". The New York Times. Retrieved 2008-06-04. Now, after Burger King's decision on Thursday to cancel its franchise contract for the shop in Maale Adumim, Jewish groups are accusing the company of capitulating to Arab pressure.
  23. ^ Julia Goldman (1999-09-01). "Dumping West Bank store puts Burger King in a pickle". The Jewish News Weekly. Archived from the original on 2008-02-05. Retrieved 2007-10-01. When the Burger King Corp. pulled its name from a franchise in the West Bank settlement of Ma'aleh Adumim on Thursday of last week, it claimed the reason was breach of contract.
  24. ^ Israel Faxx news report (1999-08-30). "Jews Plan to Boycott Burger King". Israel Faxx. Archived from the original on January 2, 2009. Retrieved 2008-06-04. The Zionist Organization of America is considering calling for a worldwide Jewish boycott against Burger King, to protest its surrender to Arab threats and the closure of its branch in Ma'aleh Adumim.
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