Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)
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Enter Avi Katz, a businessman from the Tel Aviv suburb of Bnei Brak. In Sep- tember 2013 Katz launched the first Cofix café, in Tel Aviv, sparking a java revolu- tion by setting the entire menu — cof- fee, baked goods and sandwiches — at an across-the-board price of 5 shekels per item. Katz, a retail magnate, had al- ready made a fortune with a variety of chain stores he had opened or acquired over the years. But even Katz was surprised at the runaway popularity among Israelis of this affordable coffee-shop concept. The chain now boasts 70 franchised units and will be seeking expansion through a new format it began rolling out at press time called Super Cofix: a supermarket in which all the products will sell for $1.50 per item. Meanwhile, the chain's success has also brought about a seismic change in the Israeli coffee culture at large, by means of several copycat five-shekel cof- fee-and-pastry outlets; the competitive if SrAEl'S SophISTICATEd CoffEE culture was getting out of control. Upscale café chains like Arcaffé or Café hillel, which dot the tiny country's retail landscape as conspicu- ously as Mcdonald's and Starbucks do in the U.S., were selling cap- puccinos for upwards of 15 shekels (about $4) each and croissants for roughly 12 shekels. grudging decision of the trendier cafés to lower their own prices by a shekel or two; and, not least, lots of satisfied coffee drinkers. on the other hand, at Cofix the coffee comes in only one size, the baked goods and sandwiches are strictly no-frills, and there is none of the soft lighting, shiny decor or com- fortable couches that are obligatory in the upscale places. But the patrons do not seem to mind. "There's definitely less selection, but if I'm in a rush and passing by, you can't beat a coffee and sandwich for 10 shek- els," said Tel Aviv resident Benji lovitt. "No one is going to Cofix for the ambi- ence, and the vast majority of Israelis are not coffee snobs — they can't taste the difference, if there even is one." Katz agrees, and he explains that he had the idea for a discount café back in I frugal brew israel's COFiX draws CrOwds with its nO-Frills, lOw-COst COFFee By David Brinn r e t a I l I n g t o d a y 26 S C t / J u l y 2 0 1 5