Israel's largest café chain Aroma is cutting the price of it coffee to meet the challenge from Cofix. Aroma is cutting the price of its cappuccino 27% from NIS 11 to NIS 8. Aroma is the only café chain to date to say that it was considering steps to counter Cofix. Today's price cut could force other café chains to follow suit.
"There is new competition. Cofix has built the lean and mean concept. Just as we knew how to deal with Starbucks and the opening of Café Gregg, Café Café, and Cup o' Joe, followed by the aggressive entry of convenience store chains Yellow and Menta, we'll know what to do now," Aroma owner Yariv Shefa told "Globes".
"We've always tried to be very competitive in our pricing, and we were the cheapest chain. If you compare the prices of products for sitting at a café, you'll see differences of 20-40% for coffee products compared with competitors. We don’t charge for service, so the actual difference is greater."
Until recently Aroma charged lower prices for products to go than for eating at the café. It has now unified prices, partly because of a general price hike for most products. It lowered the price of its flagship product, a large cappuccino from NIS 14 to NIS 13.
Published by Globes [online], Israel business news - www.globes-online.com - on October 15, 2013
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