Type Public Industry Coffee shops CEO Haim Aharon (2014–) Headquarters Israel Founders Avi Katz, Benny Farkash | Traded as TASE: CFX Key people Haim Aharon (CEO) Founded 2013 Number of locations 161 | |
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Operating income Owners Avi Katz
Benny Farkas
Gil Unger
Hagit Yanover
Hanan Shemesh Stock price CFX (TLV) 1,476.00 ILA +11.00 (+0.75%)7 Mar, 5:24 PM GMT+2 - Disclaimer | ||
Cofix first low cost coffee bar in tel aviv mael benoliel for i24news french version 2013
Cofix (Hebrew: קופיקס, a portmanteau of coffee and fix) is an Israeli coffee shop, bar and supermarket chain established in 2013 by Avner "Avi" Katz. Most of the Cofix branches are in city centers, and other popular areas, but some are located in or next to educational institutions, such as the Haifa University and Ariel University.
Contents
- Cofix first low cost coffee bar in tel aviv mael benoliel for i24news french version 2013
- Business and impact
- Activity outside Israel
- Israel
- International
- Controversy
- References
The chain has 148 branches, most of which are regular branches selling coffee, food products, and occasionally a small selection of other products. The Cofix Bar part of the chain also includes alcoholic beverages, and Super Cofix is a Cofix-based supermarket. The chain offers all of its products at a fixed price of NIS 5 ($1.29), including in the bar and supermarket branches. The entire chain is kosher, but in some Haredi population centers the products are additionally glatt kosher, and the branches have no seating areas. These are under the auspices the subsidiary Urban Cofix, and are branded Cofix in the City (Hebrew: קופיקס בעיר, Cofix BaIr).
Cofix is listed at the Tel Aviv Stock Exchange under AGRI. Upon its entrance into the stock market, it was valued at NIS 90 million (~$23 million). As such, Cofix became the first coffee shop chain to be listed at TASE.
Business and impact
Cofix's entrance into the market caused a significant reduction in take-away coffee prices in Israel, notably in the Aroma Espresso Bar chain, which was forced to reduce take-away coffee prices. Some stores and chains reduced prices on coffee, sandwiches, and other products similar to Cofix's to NIS 5 to compete. This has been termed the Cofix Effect in major mass media outlets. Cofix's entry into the market has been compared to the "cellular revolution" which took place in Israel a few years prior and saw massive reductions in cellular communication prices.
Cofix's business model has led to a number of competitors, but as of 2015, only the Cofizz chain has remained as a major competitive force in the same market segment. The major coffee and fast casual restaurant chains, such as Aroma Espresso Bar, Café Café and others, also compete with Cofix. In late 2013, the Israel Antitrust Authority investigated claims that these chains coordinated prices in order to hurt Cofix's position.
Cofix operates both directly and through franchisees. Its first franchise was granted in March 2015 for the King George Street branch in Tel Aviv. In 2015, it entered the Tel Aviv Stock Exchange through the shelf corporation AGRI. The public owns 15.5% of the company. In January 2016, Cofix partnered with Israeli burger chain Burgeranch that would see Cofix products sold next to Burgeranch ones.
In June 2015, Cofix opened a supermarket chain, called Super Cofix, that contains a relatively small number of common items sold at competing chains, in smaller packages so they can be sold for a fixed price of NIS 5. The business model calls for a gross profit of 22–23%. Some major manufacturers, such as Tnuva, created new packaging lines to be able to supply Super Cofix.
Activity outside Israel
With the help of Russian investors, Cofix opened its first store in Moscow near the Red Square in October 2016. The investment in Russia totaled $2 million as of December 2016.
Israel
The chain's founder Avi Katz has set out to open 300 Cofix branches in Israel, with at least 10 Cofix Bar branches. One-hundred eighty of those branches are set to be opened by 2020. According to Cofix, it costs NIS 350,000 to open each new branch. Cofix hopes to achieve a 3% market share countrywide, of the Israeli food market. Cofix is set to open a factory in Yavne for supplying the chain with 13,000 sandwiches each day.
International
Internationally, the chain's founder revealed plans to open Cofix branches in Moscow and London. Locations in Turkey are also planned. In Russia, the plan is to open 300 branches in Moscow and 700 elsewhere in the country.
Controversy
Cofix has waged a battle against its main Israeli competitor, Cofizz. Cofix claims that the latter plagiarized its logo and exploited the success of its brand, while Cofizz founders claim that they worked for Cofix without a salary and in exchange for unfulfilled franchise promises, which forced them to open a competing chain. The battle has reached the Israeli court system.