Dunkin' Donuts Israel

Dunkin' Donuts Israel (דאנקן דונאטס)
Industry Fast-food restaurant
Founded Israel (1996)[1]
Defunct 2001[1]
Headquarters Israel
Area served
 Israel
Products Doughnuts, Coffee

Dunkin' Donuts Israel (Hebrew: דאנקן דונאטס‎) was an Israeli franchise of the chain Dunkin' Donuts.

History

Dunkin' Donuts Israel opened their first location within Israel in 1996 in Tel Aviv. Their main flagship store was located in Rabin Square,[1] with their factory in Lod.[2]

Upon opening their first location Dunkin' was a tremendous hit. When the original location opened it broke Dunkin's own sales records by selling 3 million doughnuts in the first eight months.[3] The chain's manager was quoted saying "Israelis do not stop eating doughnuts, They buy such quantities, quantities that we would never have believed they would buy. They buy boxes of 12, eat them here, and then buy more boxes to take home."[4]

In 2001, when Dunkin' Donuts Israel decided to close, the company had accumulated a large amount of debt. When the Second Intifada broke out, Israeli tourism slowed, and Dunkin' decided to close.[5] Approximately $2 million was invested in Dunkin' Donuts Israel when it failed.[6] At the peak, Dunkin' Donuts had 9 branches in Israel, of their original goal of 15, including 3 in Jerusalem.[2]

Causes of closure

While many factors attributed to Dunkin' Donuts' failure, some key factors were:

  • The Second Intifada hurt Israeli economy.[5]
  • After Hanukkah many Israelis do not eat doughnuts due to all the Sufganiyah eaten.[6]
  • Local chains such as Roladin and Aroma Espresso Bar catered more to the unique Israeli tastes.[7]
  • Doughnuts were smaller and more expensive than local Israeli chains.[8]

See also

References

  1. 1 2 3 This day in Jewish history / Dunkin' Donuts' founder is born – Retrieved 3 September 2014
  2. 1 2 סוףגניה – Retrieved 3 September 2014
  3. ↑ Downsize me: Israel shuns fast food – Retrieved 3 September 2014
  4. ↑ American Fast Food In Israel: The Bagel – Retrieved 3 September 2014
  5. 1 2 Doughnuts return in honor of Hanukkah – Retrieved 3 September 2014
  6. 1 2 Dunkin Donuts Catastrophic Failure in Israel Archived September 4, 2014, at the Wayback Machine. – Retrieved 3 September 2014
  7. ↑ רשתות מזון בינ"ל: למה נכשלו ואלו כדאי להביא לארץ – Retrieved 3 September 2014
  8. ↑ Skeptical about the Israeli cupcake trend – Retrieved 3 September 2014
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