Three and half years after the Cafe Cafe chain cut its takeaway price for a cup of coffee to NIS 8, the chain is again cutting the price, this time to NIS 6. "The NIS 8 price brought us a lot of new customers, with a 30-40% increase. It's good for both the franchise holder and for us," says Cafe Cafe owner Ronen Nimni.
According to Nimni, the profit margin on a cup of coffee after the price cut is 100%, meaning that a cup of coffee sold by the chain for NIS 6 costs the chain NIS 3, in addition to the other expenses. "The takeaway products are very much a niche product for us, so we can afford to lower the prices, and it will compensate us for the price cut," Zimerman explained.
"We expect 30-40% growth, and I believe that we'll still be surprised," Nimni adds. "When we cut the price the last time, we didn't think we'd do it again, but we saw it was good for both the franchise holder and for us, so we decided to take it one step further."
The concept behind the campaign is to educate the public to speak politely and say "please" and "thank you" when ordering coffee. Nimni says he wants "to encourage more respectful conversation in Israel society." Cafe Cafe customers who say "please" and "thank you" when they order an ordinary sized cup of coffee will pay NIS 6, instead of NIS 8. Asked whether customers who do not say "please" and "thank you" will have to pay more, he answers, "No, then the barman will say it."
Founded in 2001, Cafe Cafe is one of Israel's largest chains of cafes, with 157 branches deployed nationwide. Owned by Nimni and Mickey Teal, the chain includes other brands, such as Lechem Erez, Lechem Basar, the Fresh Kitchen chain, the Caspi chain of restaurants, etc.
Published by Globes [online], Israel Business News - www.globes-online.com - on May 3, 2017
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