Franchises Are Booming

August 3, 2007 by Mark | 0 Comments

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Tzion Basheshet, owner of Coffee Time Bagels in Zion Square, keeps a watchful eye on the competition that moves into his territory, wary of the increasing number of big chains encroaching on his small business.

Every time a chain moves in, Basheshet says, it takes some business away from the others. “People don’t come to downtown Jerusalem cafes from across the country the same way they come to cafes in Tel Aviv,” he says, suggesting that profits are limited and each establishment is competing for a share of the pie.

“Every new place takes some percentage of the profits from the next one.”

One block over and across the street, Adam Budwig, manager of the Coffee Bean & Tea Leaf, sees things differently. “Competition is good,” he says. “It brings more people to the area because they have more options.”

Budwig has reason to be confident. He runs Jerusalem’s only branch of an international chain that owns 13 other branches across the country. The Coffee Bean & Tea Leaf arrived at Kikar Zion two years ago, joining Neeman Bakery, Café Hillel, Aroma, English Cake and Holy Bagel along a three-block stretch of Jaffa Road. It quickly established itself as a favorite among Anglos and tourists, particularly those who patronized its branches in America.


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