Hebrew-language daily “Yediot Ahronot” reports that fuel company Delek is about to quit the partnership that has won the concession for operating US Starbucks’ coffee shop chain in Israel. Starbucks’ first coffee shops are due to open in the coming months, and their number is expected to reach 100 in six years.
As previously reported, businessman Yair Hasson received the Starbucks concession six months ago, and brought Delek in as a partner. Hasson and Delek owned 40% of Starbucks Israel each, with Starbucks International holding 20%. Following the agreement with Delek, it was assessed that Starbucks coffee shops would be set up in the company’s gas stations, which would provide Starbucks with large-scale deployment.
In view of Delek’s expected departure, it is not clear whether the coffee shop chain will get under way under Hasson and Starbucks International’s ownership only, or whether another partner will be brought in instead of Delek. Hasson and Delek would not comment on the report yesterday.
Starbucks Israel underwent changes even before the first coffee shop opened. Miki Keinan, who served as Starbucks Israel’s CEO for two months only, resigned, and no successor has been appointed yet.
Starbucks Israel is currently recruiting staff and spotting suitable locations for its first outlets. It is believed that Starbucks is seeking to open coffee shops next to the coffee shops of the Arcafe chain, owned by Sarah Shemer.
Published by Israel's Business Arena on 15 February, 2001