Business Family Expands into Fast Food with Multiple Acquisitions
Translated & summarized from Ynet by baba
Business family M. Baruch & Sons has acquired stakes in two Israeli fast-food businesses, "Don Prado" pizza and "Wings Crispy," as part of a plan to build a national fast-food group. The expansion into the growing fast-food sector comes amid rising living costs and lower operational overheads compared to traditional restaurants.
The story in 5 lines · by baba
- Baruch family enters fast food by acquiring pizza and wings businesses.
- Son Ben Baruch will manage the new fast-food division.
- Acquisitions aim to build a national fast-food group.
- Fast food market is booming in Israel.
- Deals reflect rising living costs and lower operational overheads.
Gili Baruch, owner of the established electrical appliance importer M. Baruch & Sons and a real estate entrepreneur, is entering the fast-food sector with his son, Ben, who will manage the new division. The Baruch family recently acquired Barak Abramov's stake in "Don Prado," a well-known pizza establishment in Petah Tikva specializing in stone-oven, handmade pizzas. The deal, valued in the low millions, is believed to stem from Abramov's lack of interest in a single branch, as he focuses on his core business, the Japannica chain. Japannica recently saw 20% of its shares acquired by Leumi Partners at a company valuation of one billion shekels, and has previously been targeted by crime families.
The Baruchs have also finalized an agreement to purchase the entirety of "Wings Crispy - American Style Wings," a business with a branch in Givat Shmuel founded by Drew Rosen, which focuses on tempura-coated wings. Ben Baruch plans to build a fast-food group encompassing multiple brands, aiming for national expansion through company-owned branches or a franchise model.
This move occurs amidst a boom in Israel's fast-food market, contrasting with the closure of many restaurants, particularly high-end ones. Trends driving this growth include crispy fried chicken, exemplified by Chef Yisrael Aharoni's "Aharonis" chain, and hot dog eateries. This follows a recent report of the Kamari Group acquiring 50% of Zalman's, a hot dog chain. The appeal of fast food is attributed to its relative affordability amid rising living costs, and for entrepreneurs, lower operational costs due to reduced need for chefs and smaller real estate footprints.
Ben Baruch stated that these acquisitions are initial steps, highlighting Don Prado and Wings as brands with excellent products and loyal customers. He sees potential for national growth with Wings and views Don Prado as a solid platform for expansion. Attorneys Udi Danahirsh and Binitzion Bini represented the buyers, with Danahirsh noting the fast-food market's consolidation, where investors are acquiring promising brands for future growth and potential stock market listings.