The "Subway" fast food chain has burst onto the autonomous areas, leaving potential rivals trailing behind. The chain has a West Bank franchisee, Adnan Bahur, and is negotiating with another candidate to represent it in Gaza.
The chain’s Israeli franchisee, Yair Tamir, also covers the Territories. The existing vacuum in the region as far as fast food chains are concerned, and the demand for the product, meant immediate success. Through Bahur, Tamir opened a first restaurant in Al-Bira, next to two schools. The restaurant started business two-and-a-half months ago, and, in the light of the demand, a second restaurant is already being set up in Bethlehem. At the same time, steps are being taken towards opening two more branches, in Nablus and Bet Hanina.
Sales in the Territories are higher than in the chain’s Israeli branches. This is not entirely surprising, given the absence of competition, and the location in an area with a fairly well to do population, which can afford to spend money on ready-prepared meals. Prices are identical to the chain’s prices in Israel. Demand is especially high for hot meals, which contain steaks or meat balls. The proportion of such meals sold in the Territories is significantly higher than in Israel.
Tamir said that the population segment which frequents the Al Bira branch comprises mostly Christian customers, with relatively high purchasing power and a strikingly Western background.
The investment involved in building branches in the Territories and in Israel is similar, apart from building labour costs. Investment in an Israeli branch amounts to about $7,000. Construction in the Territories is some 25% cheaper, and operating costs are lower too, because in the Territories there is no minimum wage. On the other hand, Tamir pointed out, haulage costs to the Territories are higher.
The chain’s Territories branches will be about the same size as those in Israel, apart from the first two branches, which were made larger because of the high level of interest aroused by the start of activity. In the Territories, the chain sells products which combine cheese and meat which are not sold in Israel for kashrut (Jewish dietary law) reasons. "We see the Territories as a market with growth potential, and I estimate that within two to two-and-a-half years we will be up to 10 branches" said Tamir.