Industry Fast-food restaurant Headquarters Israel Products Doughnuts, Coffee Ceased operations 2001 | Defunct 2001 Area served Israel Founded 1996, Israel | |
Dunkin' Donuts Israel (Hebrew: דאנקן דונאטס) was an Israeli franchise of the chain Dunkin' Donuts.
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History
Dunkin' Donuts Israel opened their first location within Israel in 1996 in Tel Aviv. Their main flagship store was located in Rabin Square, with their factory in Lod.
Upon opening their first location Dunkin' was a tremendous hit. When the original location opened it broke Dunkin's own sales records by selling 3 million doughnuts in the first eight months. The chain's manager was quoted saying "Israelis do not stop eating doughnuts, They buy such quantities, quantities that we would never have believed they would buy. They buy boxes of 12, eat them here, and then buy more boxes to take home."
In 2001, Dunkin' Donuts Israel elected to cease operations due to substantial debt accumulation. The onset of the Second Intifada led to a downturn in Israeli tourism, prompting the decision to shut down. The venture saw an investment of about $2 million, ultimately failing to achieve its intended impact. At its zenith, Dunkin' Donuts operated 9 outlets in Israel, falling short of the initial aim to establish 15 branches, which included 3 locations in Jerusalem.
Causes of closure
While many factors attributed to Dunkin' Donuts' failure, some key factors were: