Starbucks, the American coffee conglomerate, will set up in Israel a chain of its coffee stores through a partnership with Israeli investors. The Israeli partners are Israeli businessman Yair Hasson and the local fuel company Delek, planning to open the first store within six months with another ten scheduled for the following year, and another dozen stores the year after. “If all goes as planned, within five years Israel will have over 80 Starbucks stores, after an overall investment of US$30m,” as reported in Haaretz. The new venture is a partnership between Hasson (40%), Delek (40%) and Starbucks (20%).
Per capita coffee consumption in Israel is among the highest in the world – about 3.8 kg per year. Nearly 99% of the coffee consumed in Israel is either instant or Turkish coffee. According to the report, Starbucks plans to open its stores in prosperous urban centres near Tel Aviv, “targeting well-off clientèle who can afford to pay US$2.75 for cappuccino and US$1.25 for a small cup of espresso.”
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By Aaron Priel, just-food.com correspondent
To read last week’s feature on Starbucks’ successful venture into Japan, click here.
