Pret A Manger ends franchise deal in 'Israel', cites 'force majeure'

By Al Mayadeen English
Source: Agencies
3 Jun 2024 20:01
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The coffee chain was planning to open at least 40 cafes across the occupied territories over the next decade.

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People wearing face masks to curb the spread of coronavirus queue outside a branch of the Pret a Manger sandwich chain in central London, Tuesday, Jan. 11, 2022 (AP)

British coffee and sandwich chain Pret A Manger has canceled its franchise agreement with Israeli partners to open its first branch in "Israel", The Times of Israel reported on Monday.

The franchise cited a force majeure event resulting from the war as the main reason for their decision.

The coffee chain was planning to open at least 40 cafes across the occupied territories over the next decade.

The decision comes as large crowds of pro-Palestinian demonstrators have been marching in London on weekends to protest against the genocide in Gaza and amid pressure from BDS to divest from "Israel".

🚨BDS VICTORY - Coffee shop chain Pret has pulled out of its planned investment in Israel, with media sources citing the threat of a major boycott campaign by Palestine solidarity activists. (1/6)#BDS #FreePalestine pic.twitter.com/0BcM5RyIvT
— PSC (@PSCupdates) June 3, 2024

Israeli fashion store chain Fox-Wizel Ltd. said in an announcement on May 30 that the London-based chain canceled the license agreement between the parties due to a "force majeure" event caused by the war.

Fox-Wizel reported that the coffee chain said the war was impacting 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 in a commercial agreement allows for contract termination if certain obligations cannot be fulfilled.

"We have taken the difficult decision to end our current agreement with Fox Group and Yarzin Sella Group," a Pret spokesperson said in a 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 traveling to Israel would not be insured," the spokesperson added.

The Israeli retailer announced it plans to oppose Pret A Manger’s decision and is preparing to contest 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 coffee shops in the occupied territories.

As part of the agreement, a jointly owned company for the franchise's purpose was planned to be established, with Fox holding 75% and Sella 25%.

Pret A Manger, renowned for its organic coffee and freshly prepared grab-and-go food, operates over 600 branches across Europe, North America, and Asia, employing over 13,000 people globally.

In the UK, the chain offers a diverse selection of sandwiches, including options such as falafel and squash, hummus and roasted pepper, or classic ham and cheese, alongside wraps and flatbreads.