In September 2013, the future looked rosy: café chain Cofix opened its first branch in Tel Aviv. The gimmick was everything for NIS 5: coffee, pastries, or a sandwich.
The masses flocked to the branches as they opened, and Cofix's competitors felt the pressure.
The summer of 2015 was hot - Cofix opened a chain of grocery stores selling everything for NIS 5, and the company became Israel's first ever stock-exchange listed café chain.
February 2017 - the chain raises the price of its coffee to NIS 6. The reasons: rises in rents, raw materials, the minimum wage, and electricity.
March 2017 - Cofix posts a profit of NIS 7 million for 2016.
November 2017 - Cofix reports a quarterly operating loss of NIS 1.2 million. Its share price falls 3%, making it a 40% drop for the year.
Meanwhile, the salary of Cofix's CEO has only risen. Yaki Vadmani was appointed CEO in August this year, with compensation potentially totaling NIS 2 million annually, double that of his predecessor.
Published by Globes [online], Israel business news - www.globes-online.com - on December 5, 2017
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