Sources inform ''Globes'' that Yellow Cup Franchise Ltd., the owner of the "Juiceland" chain of fresh fruit drinks stands, has signed an agreement with US security company Arocon, under which the latter will invest $40 million in the launch of 500 Juiceland branches across the US. This is a significant step forward for the Juiceland chain, which currently operates 28 stands across Israel.
The two sides have set up a joint company called Yellow Cup USA, of which Yellow Cup Israel will hold 90%. The deal marks Arocon's first foray into consumer sales. The company's founder Amir Yatzkan will relocate to the US to oversee the development of the US company, which will sell franchises for stands at a later stage. Yellow Cup USA will forward 3% of royalties to its Israeli parent.
Ten branches are due to begin operating in the US by the end of 2007, one of which will be at the Mall of America shopping complex in Bloomington, Minnesota next month. A further 50 stands are due to be launched in 2008, following which the pace of expansion will be speeded up. Yellow Cup Israel will finance 25% of the cost of opening the first ten stands, with Arocon bearing all the costs from then onwards. The investment in the first stand will total $150,000, but this will decrease as the number of stands grows. Yatzkan expects the cost of opening a stand will fall to $80,000-100,000 after a year.
The Juiceland brand started out in a small fridge inside the Italian restaurant that Yatzkan ran in Jerusalem's Malha Mall several years ago. "I had a small fridge and I decided to install some orange and carrot juice machines," he recalls. "Within a short space of time, the small fridge was producing an income that was larger than that of the entire restaurant. I asked the mall manager if I could put up a stand outside. He replied, 'you’re not normal, Azrieli has invested hundreds of millions here and you want to put up a wagon?" The two men nevertheless agreed that Yatzkan would put up a stand, and if Azrieli complained about it when he visited the mall, Yatzkan would dismantle it within 24 hours. Azrieli liked the idea, and the rest is history.
Published by Globes [online], Israel business news - www.globes.co.il - on July 16, 2007
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