Everything NIS 5 at new cafe chain
Cofix opened its first branch in Tel Aviv today, and plans 300 branches within three years.
Behind the concept is Avi Katz, who 18 years ago founded Bee Retail Group, the owner of the Dollar Store chain, based on the same concept. Katz, the founder and president of Hagshama Fund, has been joined in Cofix by his daughter, Hagit Shinover, his partner in Hagshama, Benny Farkash, and Adv. Hanan Shemesh.
Cofix inaugurated its first branch on Ibn Gvirol Street in Tel Aviv today, and two more branches will opened in the city, on King George Street and Ha'arba'a Street. Katz and Farkash will own the three branches, which cost NIS 5 million to launch. They have presented an ambitious development plan to initially open 100 branches and to open 300 branches with three years. All the branches will be franchises. Under the plan, the franchisees will not pay a fee. Katz estimates the set-up cost of each branch at NIS 200,000-300,000. Cofix will be kosher and closed on weekends.
The NIS 5 menu includes quality Italian coffee, sandwiches, grilled sandwiches, baked goods, cookies, chopped fruits, energy bars, beverages in 330-ml cans from Central Bottling Company Ltd. (Coca-Cola Israel), and squeezed orange and carrot juice.
"We are not an alternative for people seeking to sit at a café in a mall. We're bringing good news in the takeaway sector for working people looking for a coffee for the road," says Katz.
The new enterprise is intended to compete against convenience stores that offer similar products for the road, and café chains.
"Globes": Is this a social venture or is there business potential?
Katz: "The public's feeling that the cost of living has risen unjustly is correct. Prices have fallen in every category - fashion, computers; why not food? Because the food industry is dominated by cartels, and the other half is controlled by malls. It's a fixed game by the big players, and there is little competition. A few distributors dictate prices for consumers, who now pay more for no reason."
How have you promised to maintain the price?
"This is a realistic price, and it enables us to make a nice profit. Our idea is to sell more for less, not to sell a little at a high price."
Published by Globes [online], Israel business news - www.globes-online.com - on September 30, 2013
© Copyright of Globes Publisher Itonut (1983) Ltd. 2013
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