Pret a Manger has announced it will not open stores in Israel due to complications caused by the ongoing conflict in the Middle East.
The food-to-go chain invoked a force majeur clause to terminate the agreement, claiming logistical challenges such as “significant ongoing travel restrictions” would prevent the business from carrying out checks to set up Pret in a new market.
Pret had reached an initial agreement with Fox Group in 2022 to bring 40 shops to Israel, starting with the capital Tel Aviv.
The agreement saw the sandwich chain partnering with Fox Group and restaurant group operator Yarzin Sella.
According to the Times of Israel, the deal envisioned the creation of a jointly owned company for the purpose of the franchise, in which Fox Group and Sella would hold respectively 75% and 25% of the shares.
Fox Group told the Israeli newspaper it is planning to oppose Pret’s decision and is preparing to reject the coffee chain’s claims.
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A Pret spokesperson said: “We have taken the difficult decision to end our current agreement with Fox Group and Yarzin Sella Group.
“We had tried to delay this decision for as long as possible, but the significant ongoing travel restrictions have meant that our teams have not been able to conduct the checks and training needed to set up Pret in a new market. Under the terms of Pret’s travel insurance, any colleagues travelling to Israel would not be insured.
“We want to express our sincerest thanks to the teams at Fox Group and Yarzin Sella Group, who have been supportive and extremely collaborative partners.”
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