The “Yediot Ahronot” Hebrew daily reports that Paz Oil Co., controlled by Zadik Bino, plans to sell the Burger Ranch chain to Burger Ranch managing director Yossi Lubaton.
Paz, which fully owns Burger Ranch, will sell it to Lubaton in stages. Lubaton will initially be made responsible for running Burger Ranch as an external operator, and will be given a minority share in the chain, in exchange for a financial investment. At this stage, Paz and Bino will retain responsibility to the banks for all of Burger Ranch’s obligations. The contract between Bino and Lubaton is due to be signed in the next few days, after being approved by the Paz board of directors.
Burger Ranch has 92 outlets in Israel, half of which are operated by franchise holders, and an estimated annual sales turnover of NIS 150 million. Up until 2001, Burger Ranch was breaking even, but has accumulated NIS 8 million in losses since the intifada and the recession began.
Bino decided to get out of the fast food business, after Antitrust Authority director general Dror Strum refused to approve Burger Ranch’s acquisition of Burger King Israel.
Published by Globes [online] -l www.globes.co.il - on September 14, 2003