Cofix

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Cofix
TypePublic
TASE: CFX
IndustryCoffee shops
Founded2013; 8 years ago (2013)
FounderAvi Katz
Benny Farkas
HeadquartersTel Aviv
Number of locations
Israel: 145 (2019)[1]
Russia: 135 (2019)[2]
Belarus: 12 (2021)
Key people
Haim Aharon (CEO)
NIS 287 million[1] (2018)
OwnersAvi Katz
Rami Levy
Benny Farkas
Gil Unger
Hagit Shinover
Hanan Shemesh
Websitecofix.co.il/en

Cofix (Hebrew: קופיקס‎, a portmanteau of coffee and fix) is an Israeli coffee shop, bar and supermarket chain established in 2013 by Avi Katz, which uses a fixed price menu system. Most Cofix branches are in city centers, and other popular areas, but some are located in or next to educational institutions, such as Haifa University[3]

The chain sells fresh coffee at a fixed and low price, as well as associated food products, under the slogan "fresh coffee, fixed price". The Cofix Bar part of the chain also includes alcoholic beverages,[4] and Super Cofix is a Cofix-based supermarket. The chain originally offered all of its products at a fixed price of NIS 5 ($1.4),[5][6] including in the bar and supermarket branches,[4][7]

Cofix is listed at the Tel Aviv Stock Exchange under AGRI. Upon its entrance into the stock market, it was valued at NIS 90 million (~$25 million).[8] As such, Cofix became the first coffee shop chain to be listed at TASE.[9]

Business and impact[]

Israel[]

Cofix in Moscow

Cofix's entrance into the market caused a significant reduction in take-away coffee prices in Israel, notably in the Aroma Espresso Bar chain, which was forced to reduce take-away coffee prices.[10] Some stores and chains reduced prices on coffee, sandwiches, and other products similar to Cofix's to NIS 5 to compete.[11] This has been termed the Cofix Effect in major mass media outlets.[10][11] Cofix's entry into the market has been compared to the "cellular revolution" which took place in Israel a few years prior and saw massive reductions in cellular communication prices.[12]

Cofix's business model has led to a number of competitors, but as of 2015, only the chain has remained as a major competitive force in the same market segment.[citation needed] The major coffee and fast casual restaurant chains, such as Aroma Espresso Bar, Café Café and others, also compete with Cofix. In late 2013, the investigated claims that these chains coordinated prices in order to hurt Cofix's position.[12][13]

Cofix operates both directly and through franchisees. Its first franchise was granted in March 2015 for the King George Street branch in Tel Aviv.[14] In 2015, it entered the Tel Aviv Stock Exchange through the shelf corporation AGRI. The public owns 15.5% of the company.[15] In January 2016, Cofix partnered with Israeli burger chain Burgeranch that would see Cofix products sold next to Burgeranch ones.[16]

Cofix was set to open a factory in Yavne for supplying the chain with 13,000 sandwiches each day.[17]

In June 2015, Cofix opened a supermarket chain, called Super Cofix, that contains a relatively small number of common items sold at competing chains, in smaller packages so they can be sold for a fixed price of NIS 5.[18] The business model calls for a gross profit of 22–23%.[19] Some major manufacturers, such as Tnuva, created new packaging lines to be able to supply Super Cofix.[19]

In February 2017, Cofix raised its fixed price to NIS 6 per item,[20] and in December 2017 the scheme was changed yet again to a variation of prices, mostly either NIS 5 for smaller items and NIS 8 for larger items.[21]

In January 2018, 20% of Cofix was purchased by Rami Levi Hashikma Marketing.[22] In June 2018, Cofix announced a streamlining plan, following a Q1 2018 loss of NIS 5.4 million.[23] In July 2018, Rami Levi's share of the company increased to 50.01%, making him the majority stakeholder.[24] In January 2020, Rami Levi acquired the sweets store chain Little Switzerland through Cofix.[25]

Russia[]

With the help of Russian investors, Cofix opened its first store in Moscow near the Red Square in October 2016.[26] The investment in Russia totaled $2 million as of December 2016.[27] By late 2017 the chain had 39 stores in Moscow, and four in Saint Petersburg.[2]

In 2018 the turnover of Cofix in Russia was estimated at approximately 2 billion rubles.[28] Due to the rapid growth in Russia, Cofix became the leader in relative growth rates among European coffeehouses according to «FoodService Europe & Middle East» magazine.[29]

In 2019 the Russian Cofix was estimated as the sixth largest coffeehouse chain in the country.[30] In July 2019 Forbes Russia listed Cofix among TOP-10 most profitable franchises costing between 5 and 25 million rubles.[31] At the end of the year Cofix launches a vegan product line designed for people adopting healthy and responsible lifestyle.[32]

In 2020 the Russian Cofix remains one of market leaders and consists of more than 190 coffeehouses located in Moscow, Saint Petersburg and Irkutsk.

Controversy[]

Cofix has waged a battle against its main Israeli competitor, Cofizz. Cofix claims that the latter plagiarized its logo and exploited the success of its brand, while Cofizz founders claim that they worked for Cofix without a salary and in exchange for unfulfilled franchise promises, which forced them to open a competing chain. The battle has reached the Israeli court system.[33]

See also[]

References[]

  1. ^ Jump up to: a b Yeshayahou, Kobi (March 27, 2019). "Cofix closes 13 branches, reduces losses". Globes. Retrieved March 27, 2019.
  2. ^ Jump up to: a b "Израильская сеть Cofix планирует увеличить число кофеен в России до 180 в 18г" [Israeli Chain Cofix Plans to Increase Number of Coffee Shots in Russia to 180 in 2018]. Financial One (in Russian). December 18, 2017.
  3. ^ Crystal, Meirav (October 12, 2014). "Cofix in the Academia: Will Open Branches in Haifa and Ariel". Ynet (in Hebrew). Retrieved June 19, 2015.
  4. ^ Jump up to: a b Ya'akobi-Hendelsman, Hiali (March 3, 2014). "Lehayim, and Cheap: Cofix Bar Opened". Israel Hayom (in Hebrew). Retrieved June 19, 2015.
  5. ^ of Israel staff, Times (February 16, 2017). "5-shekel coffee chain steams price up to 6". The Times of Israel. Retrieved May 25, 2017.
  6. ^ Crystal, Meirav (September 30, 2013). "New Coffee Chain: Entire Menu for NIS 5". Ynet (in Hebrew). Retrieved June 19, 2015.
  7. ^ "Cofix reverts to NIS 5 per item formula - Globes English". Globes (in Hebrew). 18 December 2017. Retrieved 2018-04-25.
  8. ^ Bindman, Racheli; Kadosh, Nurit (May 4, 2015). "Price Tag of Cofix Chain: NIS 90 Million". Calcalist (in Hebrew). Retrieved June 20, 2015.
  9. ^ Levy, Aviv (June 15, 2015). "Cofix becomes first cafe chain on TASE". Globes. Retrieved June 20, 2015.
  10. ^ Jump up to: a b Yefet, Orna (October 14, 2013). "Cofix Effect: Aroma Israel Will Lower Take-Away Coffee Prices". Calcalist (in Hebrew). Retrieved June 20, 2015.
  11. ^ Jump up to: a b Crystal, Meirav (October 16, 2013). "Cofix Effect: More Coffee Shops Offering NIS 5 Menu". Ynet (in Hebrew). Retrieved June 20, 2015.
  12. ^ Jump up to: a b Dovrat-Mezrich, Adi (October 10, 2013). "Leading Coffee Chains Coordinate Steps: "No One is Going to Lower Prices"". TheMarker (in Hebrew). Retrieved June 20, 2015.
  13. ^ Levy-Weinriv, Ela; Hayut, Ilanit (October 10, 2013). "The [Antitrust Authority Chief] Investigates: Suspicion of Price Coordination Among Coffee Chains". Globes (in Hebrew). Retrieved June 20, 2015.
  14. ^ Yefet, Orna (March 3, 2014). "First Cofix Bar Branch in Tel Aviv Inaugurated; "At Least Ten More Will Be Opened"". Calcalist (in Hebrew). Retrieved June 20, 2015.
  15. ^ Hayut, Ilanit (May 4, 2015). "Cofix on Way to TASE Through AGRI Shelf Corporation". Globes (in Hebrew). Retrieved June 20, 2015.
  16. ^ "Fearing the King, Cofix and Burgeranch Team Up". Globes. January 28, 2016. Retrieved January 28, 2016.
  17. ^ Azulai, Yuval (August 17, 2016). "Cofix to open Yavne factory". Globes. Retrieved August 18, 2016.
  18. ^ Lukash, Alexander (November 10, 2014). "How Will Cofix Sell for NIS 5? Small Packages". Ynet (in Hebrew). Retrieved June 20, 2015.
  19. ^ Jump up to: a b Hayut, Ilanit (June 2, 2015). "Tnuva Trying to Solve Cost of Living Problem Without Lowering Costs". Globes (in Hebrew). Retrieved June 20, 2015.
  20. ^ "סערה בכוס קפה: קופיקס מעלה את המחיר ל-6 שקלים". כלכליסט - www.calcalist.co.il. 2017-02-16. Retrieved 2017-08-07.
  21. ^ Kadosh, Nurit (December 17, 2017). "קופיקס מחשבת מסלול מחדש: חוזרת למחירים של 5 שקלים" [Cofix Recalculates Itinerary: Returns to NIS 5 Prices]. Ynet (in Hebrew). Retrieved December 31, 2017.
  22. ^ Dovrat-Mazritz, Adi (January 1, 2018). "רמי לוי רוכש חלק מקופיקס - ואלה התוכניות שלו" [Rami Levi Purchases Part of Cofix – Here Are His Plans]. TheMarker (in Hebrew). Retrieved July 26, 2018.
  23. ^ "Cofix switches to Q1 operating loss - Globes". Globes. June 3, 2018. Retrieved June 3, 2018.
  24. ^ Kaneh, Hadar (July 26, 2018). ""אולי יהיו קצת יקרים יותר מקופיקס": אחרי ההשתלטות - רמי לוי מייקר את מוצרי הרשת" ["Might Be a Bit More Expensive than Cofix": After Taking Control, Rami Levi Increases Chain's Prices]. TheMarker. Retrieved July 26, 2018.
  25. ^ Kadosh, Nurit (January 19, 2020). "קופיקס: הושלמה רכישת 4 חנויות שוויצריה הקטנה ב-18 מיליון שקל" [Cofix: Acquisition of Four Little Switzerland Stores Completed for ILS 18 Million]. Calcalist (in Hebrew). Retrieved February 29, 2020.
  26. ^ Yeshayahou, Kobi (October 10, 2016). "Cofix Opens First Moscow Cafe". Globes. Retrieved October 10, 2016.
  27. ^ Benmeleh, Yaacov; Khrennikov, Ilya (December 14, 2016). "Israel's Coffee King Takes on Starbucks With $1-a-Cup Franchise". Bloomberg News. Retrieved January 9, 2017.
  28. ^ "Ритейлер подаст кофе". Коммерсантъ. Retrieved 2019-08-06.
  29. ^ https://www.cafe-future.ru/analytics/kofe-po-krupnomu/. Missing or empty |title= (help)
  30. ^ "Топ-10 российских сетей кофеен". marketmedia.ru (in Russian). Retrieved 2019-08-06.
  31. ^ "30 самых выгодных франшиз — 2019. Рейтинг Forbes | Бизнес". Forbes.ru. 2019-07-02. Retrieved 2019-08-06.
  32. ^ "Овощи заливают кофе". Коммерсантъ.
  33. ^ "Dirt Coffee: The War Between Cheap Coffee Chains Cofix and Cofizz". Globes (in Hebrew). Retrieved June 20, 2015.

External links[]

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