In a dramatic turn of events, the Israeli retail giant Fox-Wizel Group (TASE:FOX) has been dealt a significant blow according to the Israeli business daily, Globes. The globally renowned coffee and freshly prepared food franchise, Pret a Manger, has abruptly terminated its franchise agreement with Fox, citing the ongoing war as the primary reason.
Just last year, Pret a Manger had enthusiastically entered into an exclusive franchise deal with Fox, which held an 80% stake, and Yarzin Sella, which held 20%. The collaboration was seen as a promising venture to bring the beloved Pret a Manger experience to Israel, starting with the opening of its first outlet in Tel Aviv by the end of 2024. The ambitious plan included the establishment of approximately 40 branches across the country.
However, on May 30, 2024, Pret a Manger announced its decision to cancel the license agreement, attributing the move to a "force majeure event" arising from the Iron Swords War. This unexpected development has severely impacted the company's ability to carry out the necessary preliminary actions required to launch operations under the license agreement.
My personal boycott list grows daily. Ben & Jerry. The Clooneys. Eric Clapton. And now…..Pret A Manger makes U-turn on Israel because of Gaza war https://t.co/SE8nRpCeZ7
— Marjorie Kaufman (@MarjorieKaufman) June 2, 2024
The situation is further complicated by escalating pressures from pro-Palestinian organizations, which have threatened a boycott if Pret a Manger proceeds with its plans to operate in Israel. This mounting political pressure has added another layer of complexity to an already fraught situation.
Pret a Manger, a household name among Israelis who have traveled to London and other international destinations, boasts a substantial global presence. The parent company, JAB Holdings, headquartered in Luxembourg, operates over 400 branches worldwide, including around 150 in the UK alone. The brand is well-known for its fresh sandwiches and salads, making its anticipated arrival in Israel a highly awaited event.
Everyone in here is giving money to Israel.
— Visegrád 24 (@visegrad24) November 13, 2023
Walk out right now!”
shouts a masked protester to customers at a “Pret A Manger” coffee shop.
He and other demonstrators, many with faces covered by Keffiyeh’s, a symbol of Palestinian nationalism, loudly chant “Free Palestine!”. pic.twitter.com/71MNzlBDi4
This setback not only affects Fox-Wizel Group's expansion plans but also highlights the intricate interplay of global business operations and geopolitical dynamics. The abrupt cancellation of the franchise agreement underscores the far-reaching consequences of regional conflicts on international business ventures.
