Dunkin' Donuts Israel
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Upon opening their first location Dunkin' was a tremendous hit. When the original location opened it broke Dunkin's own sales records by selling 3 million doughnuts in the first eight months. The chain's manager was quoted saying "Israelis do not stop eating doughnuts, They buy such quantities, quantities that we would never have believed they would buy. They buy boxes of 12, eat them here, and then buy more boxes to take home."
In 2001, when Dunkin' Donuts Israel decided to close, the company had accumulated a large amount of debt. When the Second Intifada broke out, Israeli tourism slowed, and Dunkin' decided to close. Approximately $2 million was invested in Dunkin' Donuts Israel when it failed. At the peak, Dunkin' Donuts had 9 branches in Israel, of their original goal of 15, including 3 in Jerusalem.
Causes of closure
While many factors attributed to Dunkin' Donuts' failure, some key factors were:
- The Second Intifada hurt Israeli economy.
- After Hanukkah many Israelis do not eat doughnuts due to all the Sufganiyah eaten.
- Local chains such as Roladin and Aroma Espresso Bar catered more to the unique Israeli tastes.
- Doughnuts were smaller and more expensive than local Israeli chains.
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