British coffee and sandwich chain Pret A Manger has annulled its franchise agreement with Israeli partners, halting plans to open its first branch in the country due to the ongoing conflict with Hamas.
Initially, the popular chain had plans to inaugurate at least 40 outlets in Israel over the next decade. However, escalating tensions and substantial pro-Palestinian demonstrations in London, sparked by the Hamas attack on southern Israel on October 7, have influenced Pret A Manger’s decision.
In an official statement to the Tel Aviv Stock Exchange, Fox-Wizel Ltd., an Israeli fashion retail company, revealed that Pret A Manger terminated the agreement on May 30, citing a force majeure event due to the war. According to Fox-Wizel, Pret A Manger asserted that the conflict hindered their ability to execute the necessary preliminary steps outlined in the license agreement. A force majeure clause allows for contract termination if obligations cannot be fulfilled due to extraordinary circumstances.
“We have made the tough decision to end our current agreement with Fox Group and Yarzin Sella Group,” a Pret A Manger spokesperson said in an email statement. “We delayed this decision as long as possible, but significant travel restrictions have prevented our teams from conducting the necessary checks and training to launch Pret in a new market.”
The spokesperson further explained, “Under the terms of Pret’s travel insurance, any colleagues traveling to Israel would not be insured.”
Fox-Wizel has indicated plans to oppose Pret A Manger’s decision and is preparing to challenge the coffee chain’s claims.
In December 2022, Pret A Manger entered into a non-binding agreement with Fox-Wizel Ltd. and Yarzin Sella Group to establish and operate the coffee shops in Israel. The agreement included forming a jointly owned company, with Fox holding a 75% stake and Sella 25%.
Pret A Manger, known for its organic coffee and freshly prepared food, operates over 600 branches across Europe, North America, and Asia, employing more than 13,000 people worldwide. In the UK, the chain offers a variety of sandwiches, wraps, and flatbreads, featuring fillings like falafel and squash, hummus and roasted pepper, and ham and cheese.