Eilat Named Israel's Burger Capital in New Industry Report
A new report from business analytics firm Points reveals that while Tel Aviv has the most burger restaurants, the resort city of Eilat has been crowned Israel's "burger capital" due to the highest ratio of outlets per household. The Israeli burger market is substantial, featuring 14 chains operating 526 branches across 114 locations. McDonald's, celebrating 33 years in Israel, dominates the market with 238 branches, representing 45.3% of the total. This makes the American giant larger than its next six competitors combined, including Burger Ranch, Burgerim, Burgers Bar, BBB, Burger Saloon, and Burger King.
The report also highlights significant regional variations. Rishon LeZion boasts the most diverse competition with 13 different chains. In Jerusalem, Burgers Bar holds a commanding presence with 16 out of the city's 26 burger outlets. Notably, medium-sized towns like Gedera, Zichron Yaakov, and Yokneam are surpassing larger cities in burger outlets per resident, often due to regional commercial centers attracting external customers.
Conversely, the Haredi (ultra-Orthodox) sector shows limited engagement with national chains. Bnei Brak and Beit Shemesh have only two and three branches, respectively, attributed to strict kashrut (dietary law) requirements and a preference for local businesses. Despite this, the overall industry is experiencing significant growth, with 25 new branches opening versus 8 closures in the past year. McDonald's led this expansion with a net gain of 7 branches, followed by Burgers Bar, Burgeranch, and Shake Shack.
Tel Aviv experienced a slight decline with two closures and no new openings, while Haifa saw three new openings and no closures. Yafit Ben Haim, CEO of Points, stated, "The Israeli public really loves burger chains and sees them as a regular food option or for leisure. The data shows that in some cities, competition for the consumer is very dense, while in other areas, the presence of chains is still limited. For the chains, this is a competitive map: where the market is already saturated, and where there are still opportunities for expansion."
