The Colonel's comeback: KFC makes a play for Israel...again
The American fast-food giant, which has already failed three times to make it in Israel, is attempting an agressive comeback to the Holy Land, meeting with potential franchisees, real estate agents and poultry suppliers.
Ynet's financial publication, Calcalist, has learned that the chain—which belongs to international fast-food company Yum!— has already met in Israel with a number of potential franchisees and real estate agents for property tours. The company has even started negotiations with poultry suppliers.
KFC has an aggressive expansion plan, with the company planning to set up 100 franchises in Israel within five years of the first restaurant.
The company is looking for a concessionaire who will agree to take the brand and develop it in Israel by granting sub-franchises to branch owners. If no master concessionaire is found, the company is considering splitting the entire franchise in Israel up between several business owners, each of whom will be responsible for a different area in the country.
The undertaking of such a strategy in Israel requires significant financial resources and a concessionaire with deep pockets that can present the company with equity.
Despite being a popular fast-food chain around the world, KFC has not enjoyed commercial success in Israel.
The franchise first came to Israel in the end of the 1980s, opening a lone branch in Tel Aviv, which eventually closed. In 1993, the company was revived by the Clal Group before changing hands again in 2003 to businessman Dudi Weissman of the Dor Alon Group.
At its peak in Israel, the restaurant had eight locations in the country, with the last of them closing in 2012.
If the company wants to succeed in Israel this time, it may have to undergo product-level changes, such as the coating of the batter to the chicken, which did not stick properly due to the salting required in the process of koshering.
