Are there Starbucks in Israel?

Before traveling to Israel, one question that coffee lovers ask is, are there Starbucks in Israel? Read on to find out.

No, there are no Starbucks in Israel. I went on a business trip to Jerusalem, Israel, for one week two months ago. For a person who always orders Starbucks Frappuccino daily, I was shocked to find that my Starbucks app was not working in Israel. I thought of it as a technical issue due to the geographical change.

I decided to go out and look for a Starbucks store where I could order my drink. I searched for their stores and did not find any. I decided to go back to my hotel and ask the receptionist where I could find one. However, I was disappointed when he told me there was no Starbucks in Israel. I wrote this article to explain why Starbucks failed in Israel and give you more information about it.

Table of Contents

When did Starbucks launch in Israel?

Starbucks was first launched in Israel in the year 2001. It found its outlets in Tel Aviv. Starbucks has many franchises worldwide, but its experience in Israel lasted only two years, from 2001 to 2003. The coffee chain has not given any news about returning to Israel.

How many stores did Starbucks have in Israel?

Starbucks managed to open just six stores in Israel for the two years it was in operation. These six outlets were all in the same city, Tel Aviv. This was because Tel Aviv is a place for foodies, and there were so many competitors in this city, such as the Arcaffe and Aroma, which are premium cafes.

The company did not open its stores in other cities, not even the capital of Israel, Jerusalem, due to the poor reception by the locals. The main reason it avoided the capital city, Jerusalem, was due to violence now and then, which would not be suitable for business.

Why did Starbucks fail in Israel?

Starbucks has managed to open its stores in 72 countries, but Israel is the only country where it opened its stores and failed after just two years. Starbucks gave a notice regarding its failure in Israel. It said they did not fail due to political issues but because the ongoing operational challenges they experienced in Israel’s market led to their failure.

Here are some more reasons why the well-known coffee chain failed in Israel.

Starbucks failed partnership with DIFC

Starbucks partnered with Delek Israel Fuel Company to enter the Israel market when it first launched its outlets in Israel. For Starbucks, this was a better experience to get more customers, but for DIFC, they saw Starbucks coffee as another black liquid company that could bring them more money. One of the DIFC leaders jokingly said that the two companies sold black liquids, making them perfect for each other. This partnership was a big flop, and Starbucks did not manage to achieve its goal of making a profit.

Starbucks culture and coffee did not appeal to Israelites.

Israelites like to sit down and enjoy their coffee with loved ones without hurrying to leave the coffee shop. Well, Starbucks needed to make more profits and lead as the best coffee house in Israel’s market; hence they served so many customers simultaneously. The customers had to come in and out with their coffee which did not make the Israelites happy. Also, Israelites believed that their local cafes served much better coffee than Starbucks, and to make matters worse, Starbucks was more expensive than the coffee in their local stores.

Starbucks chose just one city, which made its market small.

Starbucks chose to open its outlets in just one city Tel Aviv and avoided other cities, even the capital city. This made their market too small than it should have been. Additionally, their coffee was too expensive, and their stores did not meet the Israelites’ needs to relax and enjoy their coffee. The customer flow they enjoy in other cities in the world was foreign in Tel Aviv. They did not have as many customers as they expected. All these factors led to significant losses in this country, and an epic fail for Starbucks.

FAQs Section

When did Starbucks leave Israel?

Starbucks left Israel in the year 2003 after surviving for only two years.

Will Starbucks go back to Israel?

Well, Starbucks does not have any current plans to go back to Israel. They are busy trying to open an outlet in Italy. They have not given any news about ever going back to Israel.