Coffee Bean. Activity to be limited
Coffee Bean to become a fast food chain
In light of recession, new owner of coffee chain plans to start selling juice, yogurt in most of its branches in order to reduce costs
Businessman Dan Werner, the new owner of The Coffee Bean & Tea Leaf in Israel,
plans to turn most of the chain's branches into fast food and coffee compounds selling brands owned by him.
For this purpose, Werner established a management company for all his brands which will focus on purchasing, marketing and operating the brands and compounds.
The new concept, which was formed in light of the recession, includes fast food compounds in which Coffee Bean's activity will be limited within the area it operates today, and the vacant space will be used to introduce additional brands in order to reduce costs.
Coffee Generation
Meirav Crystal
People from some 500,000 households visited coffee shops in 2008 compared to people from 300,000 households in 2000. Industry, Trade and Labor Ministry report shows Israelis spend total of $314 million in cafés per year
The first branch to be changed is at the Schuster Center in Tel Aviv's Ramat Aviv neighborhood, which measures 90 square meters (969 square feet) in size. The traditional Coffee Bean activity will be reduced to a coffee-to-go format, and the remaining space will offer products of the Juiceland and My Yogurt chain owned by Werner.
The second compound featuring the new concept will open in the near future in Ramat Gan's Beser Towers and will also include My Yogurt and Juiceland products.
Werner, a former owner of the Norcat catering company, owns the Morag food group. Half a year ago, he purchased the Coffee Bean chain, which has yet to become profitable and deal successfully with its competitors.
Werner also owns the Sbarro chain in Israel, sushi chain Same Same and the operation of food services at the Green Villa in north Tel Aviv. The combined turnover of Werner's food brands totals some NIS 200 million (about $50.6 million), and he plans to buy two more fast food brands.
"We have already signed deals for the development of new compounds in Ramat Yishai and in Ramla's new mall," says Amir Yatzkan, business development manager at Werner's management company.
