Zalman’s looks to take a big bite out of Israel’s kosher hot dog market

For Moshe Zalman Olive, selling half of Zalman’s, the American-style kosher hot dog chain he founded in Israel, isn’t an exit — it’s an opportunity to keep building his dream.

“Look out, McDonald’s, here we come,” he exclaimed in a call with The Times of Israel.

Olive, a Chabad Hasid who immigrated to Israel from Chicago in 2011, launched Zalman’s after becoming frustrated with the quality of hot dogs available in Israel.

Last week, Kamari Kimona’ut, an Israeli commercial management company, announced that it had acquired a 50% stake in Zalman’s for NIS 3.5 million ($1.14 million) in a deal that valued the company at NIS 7 million ($2.3 million).

Kamari founder Assaf Kamari told the Hebrew-language Ynet news site that it plans to expand Zalman’s from its current 12 branches to as many as 40 in the coming year. But Olive told The Times of Israel that he hopes to continue expanding far beyond that.

“This is not an exit: it’s taking on extra responsibilities in order to keep growing,” Olive said. “We have no expectation for how big we can get, but we’ll take it as far as we can as long as it is feasible and profitable.”

Love at first bite

Before moving to Israel 15 years ago, Olive ran a metal recycling business in Chicago, which he sold so he could “do all the Jewish things I couldn’t do while I was in the business world,” he said. He moved to the Nachlaot neighborhood of Jerusalem, near his daughter’s family, and went to study Torah at a nearby yeshiva.

But Olive missed the good hot dogs he enjoyed in the old country, and set out to create one himself. His wife laid down three frank rules: The hot dog had to be made entirely from beef, carry Mehadrin kashrut certification, and be low in nitrates and preservatives.

Olive brought in two partners — fellow Lubavitchers — and worked with Tel Aviv chef Alan Talmor to develop the recipe, with a Jerusalem manufacturer producing the initial prototype.

“Israelis aren’t traditionally hot dog fans, due to the poor quality of sausages here in the past,” Olive said. “But we tested ours with about a hundred Israelis, and everyone loved it.”

The first Zalman’s location opened near Ben Yehuda Street in Jerusalem in 2019 and was “an instant success,” Olive said. “We got all kinds of press coverage, and people were talking about the new American guy in town. We were even able to grow during COVID, when our restaurants were shut down, by offering deliveries.”

Today, the company has three Jerusalem branches, as well as locations in Tel Aviv’s Azrieli Mall, Ra’anana, Bnei Brak, Beit Shemesh and other cities. It also recently opened a branch in Chicago, where it competes with Ken’s Diner and other local spots.

But growth brought new demands, and as the number of locations increased, Olive said it became clear that he needed additional support. He held discussions for several months with Kamari — which owns several other businesses, including the Saban Express convenience store chain — before closing the deal.

Going for the whole dog

Kamari said it is looking to expand the chain in the Haredi sector, where Zalman’s has already built a strong following. Olive said the chain has also proved popular with English-speakers, drawn in part by its American-style atmosphere. In addition to hot dogs, which are served with different varieties and toppings, the chain’s corn dogs are particularly popular, he said.

Meanwhile, hot dogs appear to be making a comeback in the broader Israeli market, according to Ynet. Michelin star-winning chef Moshik Roth launched a new gourmet sausage chain, Francko, in Tel Aviv this week, and the Yellow convenience store chain recently ran a NIS 5 hot dog promotion, it said.

“We’re not afraid of competition,” Olive said. “We feel we have the best product available, made from meat only, with no substitutes. We have better service than anybody else, and a great vibe. If there is more competition, it just means there’s more demand.”