Due to war, UK’s Pret A Manger sandwich and coffee chain scraps planned Israel entry

British coffee and sandwich chain Pret A Manger canceled a franchise agreement with Israeli partners to open its first branch in the country due to the ongoing war with the Hamas terror group.

The coffee chain was set to open at least 40 cafes in Israel over the next decade. The decision comes as large crowds of pro-Palestinian demonstrators have been marching in London on weekends to protest against Israel since the Hamas-led October 7 onslaught on southern Israel that sparked the ongoing war in Gaza.

In a statement to the Tel Aviv Stock Exchange, Israeli fashion store chain Fox-Wizel Ltd. said that on May 30 the London-based chain canceled the license agreement signed between the parties due to a force majeure event resulting from the war.

Fox-Wizel stated that the coffee chain alleged that the war was affecting the “company’s ability to carry out the preliminary actions needed to open operations as set out under the license agreement.” The force majeure clause of a commercial agreement can be used to terminate a contract if certain obligations are not met.

“We have taken the difficult decision to end our current agreement with Fox Group and Yarzin Sella Group,” a Pret spokesperson said in an emailed statement. “We had tried to delay this decision for as long as possible, but the significant ongoing travel restrictions have meant that our teams have not been able to conduct the checks and training needed to set up Pret in a new market.”

“Under the terms of Pret’s travel insurance, any colleagues travelling to Israel would not be insured,” the spokesperson added.

Fox said it is planning to oppose Pret A Manger’s decision and is preparing to reject the coffee chain’s claims.

In December 2022, Pret A Manger entered into a non-binding agreement with Fox-Wizel Ltd. and restaurant group operator Yarzin Sella to establish and operate the coffeeshops in Israel. As part of the agreement, a jointly owned company for the purpose of the franchise was planned to be set up in which Fox would hold 75% and Sella 25%.

Pret A Manger, which serves organic coffee and fresh food prepared on the spot to grab and go, has over 600 branches in countries across Europe, North America and Asia and employs over 13,000 people worldwide. In the UK, the chain sells a range of sandwiches filled with ingredients such as falafel and squash, hummus and roasted pepper, or ham and cheese, as well as wraps and flatbreads.