Cofix reverts to NIS 5 per item formula

Cofix

The cafe chain is reversing February's price hike to NIS 6 per item, but broadening its offering, with some items at NIS 8.

Fixed-price coffee shop chain Cofix (TASE: CFX)is attempting to combat the decline in its profitability. After raising its price to NIS 6 in February, Cofix has now announced a change in its pricing policy whereby it will revert to NIS 5 per item for items such as coffee and sandwiches, but will add larger items, such as a large coffee or sandwich, for NIS 8 each.

In addition, Cofix will start to offer coffee capsules and to sell coffee in jars in collaboration with El-Nakhleh Coffee. A 50-gram jar of granulated coffee will sell for NIS 5. The coffee capsules will be compatible with Nespresso coffee machines.

Cofix was founded in 2013. It runs a chain of 134 cheap cafes (some through franchisees) in Israel through subsidiary Urban Cofix, and owns half of grocery chain Super Cofix, the other half being owned by Richard Hunter's Green Lantern group. Cofix is also active in Russia through a Russian company of which Urban Cofix owns 36%. The Russian chain has 33 branches in Moscow and three in St. Petersburg.

Cofix currently has a market cap of NIS 97 million. So far this year its share price has fallen 38%.

Published by Globes [online], Israel business news - www.globes-online.com - on December 18, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

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