Gilad Bruchim, owner of M. Bruchim & Sons, one of Israel’s oldest and largest parallel importers of electrical appliances, as well as a real estate entrepreneur, is entering the fast-food business with his son, Ben, who will manage the family’s new venture.
The Bruchims recently acquired Barak Abramov’s stake in Don Perdo, a well-known Petah Tikva pizzeria specializing in handmade pizzas baked in a stone oven. Abramov owns the Japanika restaurant chain and Beitar Jerusalem soccer club.
The deal was estimated at several million shekels. Abramov is believed to have sold the pizzeria because he had little interest in holding a single location and wanted to focus on his core business, the Japanika chain. Leumi Partners acquired about 20% of Japanika at a company valuation of 1 billion shekels. The chain previously made headlines after grenades were thrown at several of its branches on multiple occasions by organized crime families.
The Bruchims did not stop with Don Perdo. They also signed an agreement to acquire full ownership of Wingz – American Style Wings. The business has a location in Givat Shmuel, founded by American-born entrepreneur Drew Rosen, and specializes in chicken wings with a tempura-style coating.
Ben Bruchim plans to establish a fast-food group that will own several brands, each of which will be developed into a nationwide chain through locations owned by the Bruchim family or operated under a franchise model.
Israel’s fast-food sector is booming even as restaurants, particularly upscale establishments, are closing. Crispy fried chicken is leading the resurgence, a trend being driven by chef Yisrael Aharoni with his Aharoni’s chain, whose signature product is “chicken candy,” along with hot dog chains.
Wings location in Givat Shmuel
(Photo: Yaron Shalom)
Ben Bruchim
(Photo: Courtesy)
On Sunday, it was reported that the Kamari Group had reached a deal to acquire 50% of Zalman’s, a chain specializing in hot dogs. The deals come against the backdrop of Israel’s high cost of living and the fact that fast-food prices are relatively inexpensive for consumers. For entrepreneurs and franchisees, the advantage is lower operating costs: there is no need for a chef in the kitchen or for a large amount of commercial space.
“These are our first steps,” Ben Bruchim said after the two deals. “Don Perdo and Wingz are brands with excellent products and loyal customers. The group we are building combines innovation with controlled growth. We see potential for Wingz to become a nationwide chain, while Don Perdo is an established platform that we can grow.”
In both transactions, the buyer was represented by attorneys Udi Danhirsh and Ben-Zion Bini of Danhirsh & Co.
“The fast-food market in Israel is undergoing consolidation,” Danhirsh said. “Investment firms and entrepreneurs are acquiring brands with potential in order to grow them and eventually take them public.”