Burger King Israel
 |
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| Industry | Restaurant |
|---|---|
| Genre | Fast food |
| Founded | Israel (1993-2010, 2016-Present) |
| Headquarters | Israel |
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Number of locations
|
6 |
|
Area served
|
Israel |
| Products | hamburgers, chicken, french fries, desserts and soft drinks |
|
Number of employees
|
TBA |
| Parent | Burger King |
| Website | burgerking |
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.
Burger King first entered Israel in 1993, under the ownership of Yair Hasson, Meshulam Riklis and Kamor Motors. In 1998, Hasson and Riklis bought out Kamor for USD$14.8 million. In 2001 Hasson sold his share to Riklis, making Riklis the sole owner.
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 (USD$27 million) in debt. Brothers Eli and Yuval Orgad bought the chain's fifty-six restaurants for ₪30 million (USD$8.3 million).
The owner of Burgeanch, Yossi Hoshinski, died of a heart attack in early 2008; shortly thereafter, Burgeranch entered bankruptcy. Orgad Holdings bought Burgeranch from bankruptcy for over NIS 100 million. 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.
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. 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 USD$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.
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Wikipedia