Sources inform “Globes” that the parent company of Spaghettim recently conducted lengthy negotiations to obtain the Israeli franchise for the Autogrill brand of Italian fast food. When the negotiations were unsuccessful, the parent company decided to found an Israeli Italian fast food chain with 50 outlets.
The new chain will sell both pizza and pasta. Six months ago, the Spaghettim chain started a pilot for combining pizza and pasta in its Rishon LeZion branch, and has now applied the idea in all its outlets.
The new chain will serve better quality Italian fast food, similar to the Autogrill brand of outlets, located in filling stations in areas with heavy traffic, including convenience stores.
The advantage of this concept, which has not been used before in Israel, is that it offers better-quality fast food, at competitive prices. The per-outlet investment in the new model is low, but locations with heavy traffic are necessary.
As reported in “Globes”, Gilroy Spaghetti Management conducted advanced negotiations to acquire the Erez Bread chain, After implementing a recovery program for the Spaghettim chain, including cost cutting and the closing down of money-losing sales points, Gilroy tried to apply a similar model at Erez Bread.
The Spaghettim chain, founded 11 years ago, has a sales turnover of NIS 60 million at its 11 outlets.
Published by Globes [online] - www.globes.co.il - on December 2, 2003