Israeli retail chain Fox-Wizel Group (TASE:FOX) and Yarzin Sella Restaurants yesterday signed a non-binding agreement in principle with UK organic coffee and freshly prepared food franchise Pret a Manger to set up and operate a chain in Israel. Fox notified the Tel Aviv Stock Exchange (TASE) this morning about the agreement. Fox expects to sign a binding agreement on the matter in the first quarter of 2023.
Last July, Fox reported that it was in talks to open Pret a Manger outlets in Israel but that the negotiations had been held up due to the demands of Pret a Manger.
In the agreement on principles, it has been agreed that a jointly owned company will be founded to hold the concession for Pret a Manger in Israel with Fox holding a 75% stake and Yarzin Sella 25%.
The development and establishment franchise for the Pret a Manager branches will be granted to the new company for 10 years, with an option for a further10 years, subject to meeting milestones, including the opening of at least 40 branches in the first decade. It was also agreed that in exchange for the franchise, the new company will pay Pret A Manger a monthly rate of the total net sales.
This is Fox's first foray into food retail and the company stresses that this is an important development in diversifying the company's brand portfolio and areas of activities.
Fox controlling shareholder and CEO Harel Wizel said, "The signing of the agreement of principles for the establishment of the Pret A Manger chain in Israel together with the Yarzin-Sella Group is a big step towards increasing the value, variety and competition in the Israeli market. Israeli consumers will benefit from the opening of the international chain here in Israel nationwide with a range of products that they like and look for every time they visit Europe or the US."
Pret a Manger CEO Pano Christou said, ""We are delighted to have reached an initial agreement that will allow us to bring the fresh food and organic coffee of the Pret A Manger chain to customers in Israel. Over the past year, we have expanded our international activities and our growth plans, in collaboration with our franchisees, Entering new markets. We look forward to seeing how customers in Israel will respond to the wonderful flavors and innovation of Pret a Manger and hope that we will be welcomed."
Yarzin-Sella Group CEO Yuval Sella added, "We at Yarzin-Sella are thrilled at the opportunity to bring to Israel this good news and innovation in the café and Go & Grab sector of the highest level, and are particularly excited with the partnership with Fox and the added value that the two groups together will bring to the Israeli market.
Pret a Manger is a coffee and fresh food chain with over 600 branches in more vthan 10 countries in North America, Europe and Asia. Pret a Manager was founded in London in 1986, where it is headquartered. The company has over 13,000 employees worldwide.
Yarzin-Sella Group is owned by Yoram and Ari Yarzin and Yuval Sella and has been operating in Israel's restaurant sector for over 30 years.
Published by Globes, Israel business news - en.globes.co.il - on December 22, 2022.
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