McDonald's Corporation (NYSE: MCD) has opened its first McCafe in Israel at the Ayalon Mall in Ramat Gan. The McCafe is located next to the renovated McDonald's branch in the mall, which cost NIS 4 million.
McDonald's Israel owner and CEO Omri Padan said, "The restaurant at the Ayalon Mall is identified with the opening of McDonald's in Israel. It is therefore natural that it will be the presented as the first McCafe in Israel."
Padan added that McDonald's Israel was reopening its branch on Rothschild Boulevard in Tel Aviv, which will also have a McCafe.
Padan said, "Each branch that will be renovated and which is big enough - and we plant to renovate ten restaurants a year - will be reopened with a McCafe. New restaurants will also include a McCafe. We open about ten new restaurants a year.
"The question whether to open a McCafe will depend on whether the McDonald's branch is big enough and if there is a suitable clientele. By the end of the year, we'll renovate the McDonald's at the Kanyon Hazahav in Rishon LeZion and it will have a McCafe. However, we did not include a McCafe in the renovated McDonald's at the Mul Hayam Mall in Eilat because there was simply no room for it."
Padan told "Globes" that up to 25 McCafes would be opened within three to four years. He said he had no fear of competition because Israelis want good coffee and genuine French croissants, which McCafe would offer at low prices.
Published by Globes [online], Israel business news - www.globes-online.com - on March 31, 2009
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