Burger King Aims for 100 Israeli Branches After Years of Struggle
Translated & summarized from Ice by baba
Burger King is aiming to significantly expand its presence in Israel, targeting the opening of 81 new branches to reach a total of 100. The fast-food chain, which has a history of financial struggles in the country, is under new leadership and has seen investment from its controlling owners. The expansion plan focuses on increasing accessibility through new locations, including at gas stations and in developing neighborhoods, while also adapting its menu to local tastes and kosher requirements.
The story in 6 lines · by baba
- Burger King plans to expand its Israeli operations from 19 to 100 branches.
- The company incurred a 15 million shekel loss in 2024 and received over 30 million shekels in owner investment.
- CEO Dana Tochner believes insufficient accessibility was Burger King's main problem in Israel.
- New branches will open at gas stations and in developing neighborhoods, not just malls.
- 12 of the current 19 branches are kosher, with plans to expand kosher offerings.
- Burger King previously faced bankruptcy and rebranding in Israel.
Burger King is embarking on a new chapter in Israel, seeking to solidify its market presence after a history of business difficulties and unsuccessful attempts to compete with McDonald's. Since 2022, the fast-food chain has been under the control of Delek Israel, which injected over 30 million shekels into the company after it incurred a 15 million shekel loss in 2024.
CEO Dana Tochner revealed in an interview with Yedioth Ahronoth that the company's new objective is to expand its footprint from 19 to 100 branches. This expansion will include opening restaurants at gas stations and in new residential neighborhoods. Burger King, an American fast-food chain founded in 1954, is globally recognized for its Whopper burger and is a major competitor to McDonald's.
Despite international success, Burger King has struggled to establish a stable operation in Israel. The chain first entered Israel in 1994 but faced bankruptcy proceedings in 2003 with debts of 98 million shekels. It was subsequently purchased by brothers Eli and Yuval Orgad. Later, disputes with the global company over royalties led to the conversion of Burger King branches to Burger Ranch in 2010. A subsequent attempt to reintroduce the brand in 2016, under French investor Pierre Besnaini, also failed to achieve significant market standing.
Tochner, who previously founded the Burgerim chain, believes the primary issue for Burger King in Israel has been insufficient accessibility. She stated that when she took over, there were 17 branches, and currently, there are 19.
Addressing the competition, Tochner expressed confidence, stating, "In Burger King's taste and quality, I don't see them." The chain is also adapting its menu to local preferences, with 12 of its 19 branches being kosher and efforts underway to expand kosher product offerings, including a pareve dessert. While prices have not increased in the past year, Tochner did not rule out future adjustments. The ambitious goal of 100 branches presents a significant challenge, especially given Burger King's past performance in Israel and the substantial lead held by McDonald's, which operates approximately 250 branches.