Jafnika Restaurant Chain Faces Violent Attacks Threatening Brand and Investor Value

In early May, Barak Abramov, owner of the Jafnika restaurant chain, celebrated a major business milestone when Leumi Partners acquired a 20% stake in his Landora Group for 200 million shekels, valuing the group at about one billion shekels. This deal marked one of the largest recent transactions in Israel's restaurant sector and was seen as a growth investment by Leumi Partners, a leading investment arm of Bank Leumi.

However, since yesterday, Jafnika has been targeted in a series of violent attacks including shootings, arson, and grenade throws at multiple branches across Israel, including Givatayim, Kiryat Ono, Ramat Gan, Netanya, Afula, and Herzliya. The attacks have shaken one of Israel's largest restaurant chains, which operates over 40 franchised locations. Industry sources suspect that some franchisees may be linked to organized crime groups, and that the violence is part of a broader conflict between crime organizations aiming to damage the brand’s reputation and drive away customers.

The repercussions extend beyond physical damage to the restaurants. The brand, built over more than 20 years, faces severe harm to its reputation, which could lead to a loss of customers, hesitation among franchisees, and reluctance from suppliers and shopping mall owners. A source familiar with the matter estimated the financial damage could reach hundreds of millions of shekels, emphasizing the danger to innocent civilians and legitimate businesses.

Leumi Partners, which recently invested heavily in Landora Group, now finds itself involuntarily involved in this criminal conflict. The investment was based on Landora’s strong business model, which includes not only Jafnika but also other food chains and a vertically integrated production and distribution system. The group had projected revenues of about 500 million shekels and a net profit of 100 million shekels by 2026. Both Leumi Partners and Abramov had expressed confidence in expanding the group’s operations through new branches, delivery services, and digital growth.

Founded in 2004 and acquired by Abramov in 2015, Jafnika grew to become Israel’s largest Asian restaurant chain with over 40 branches and international presence. The current attacks appear aimed at undermining the entire brand and its ecosystem, affecting employees, franchisees, suppliers, investors, and customers alike. Neither Jafnika nor Leumi Partners have issued a response to the ongoing situation.