Pizza Hut Israel

Pizza Hut Israel is the Israeli franchise operation of Pizza Hut, an international pizza restaurant brand. The chain began operating in Israel in 1990 under Clal Chains, a subsidiary of Clal Industries, which held the initial master-franchise rights. Its early expansion established Pizza Hut as a significant participant in Israel’s developing branded fast-food and casual-dining market. The business later passed through several local ownership arrangements rather than being operated directly by Pizza Hut’s global parent. In 1996, Shlomo Duhoki, the manager of the investment company Penthouse, acquired the Israeli business from Clal Chains for US$12 million. In 2002, energy company Dor Alon purchased Pizza Hut Israel from Duhoki. Udi Shamai joined Dor Alon as a partner in 2005, while Dor Alon retained a 30 percent interest. In 2008, Shamai acquired Dor Alon’s remaining shares through Tabasco Holdings. By this period the network had contracted substantially from its earlier footprint: it had declined from 33 branches in 2002 to 25 branches by the time of the ownership transition, and some large dine-in restaurants were converted into smaller, delivery-oriented outlets. The chain was reported to have approximately 20 branches around the acquisition period. Tabasco Holdings retained some locations while also developing additional restaurants through franchising. Niv Zilberstien joined Shamai as a shareholder in Tabasco Holdings in 2010. The business subsequently returned to expansion. Pizza Hut Israel reached 50 branches in 2013 and was reported to have 56 branches in September 2014. A later reference counted 78 stores in October 2016. These figures reflect the Israeli network at different points and may include a mixture of company-operated and franchised locations. The Israeli operation adapts Pizza Hut’s international menu and operating model to local regulation and consumer expectations. Its stores offer pizza in both deep-dish and thin-crust formats, alongside salads, quiche, focaccia, desserts, and other restaurant items. Pizza Hut Israel states or is described as carrying only kosher products, with many locations observing mehadrin, a more stringent level of kosher supervision. During Passover, some branches remain open but cannot sell chametz, including ordinary pizza products, because of Israeli legal restrictions; 18 locations were reported open during Passover in 2014. Pizza Hut Israel has also used digital ordering tools. In August 2013, it released Android and iPhone applications that allowed customers to follow the status of an order in real time. Its franchise footprint has included a Palestinian-owned location in Ramallah, opened in 2012, as well as Israeli-operated locations in West Bank settlements. The latter presence generated boycott calls because of the settlements’ status under international law. The most prominent public controversy involving the brand occurred in May 2017, when Pizza Hut Israel’s Twitter account posted material mocking Palestinian prisoners participating in a hunger strike. The company removed the post, apologized, and dismissed the public-relations firm responsible for creating the advertisement. The incident intensified existing boycott campaigns connected with the company’s West Bank franchise presence. Despite these controversies, Pizza Hut Israel has remained an active local restaurant franchise network. Udi Shamai also appeared as owner and chief executive in the Israeli version of Undercover Boss in 2013.

Pizza Hut Israel opened its first restaurant in 1990 under Clal Chains, a subsidiary of Clal Industries and the original local master franchisee. The chain expanded rapidly during its first years and became one of Israel’s leading branded pizza businesses. The ownership structure then changed several times. In 1996, Shlomo Duhoki, manager of the investment company Penthouse, bought the operation from Clal Chains for US$12 million. Dor Alon, an Israeli energy company, acquired the business from Duhoki in 2002. Udi Shamai became a partner in 2005 while Dor Alon continued to hold 30 percent. In 2008, Shamai purchased Dor Alon’s remaining interest through Tabasco Holdings. The transaction followed a period of retrenchment: the chain had fallen from 33 branches in 2002 to 25, and was described as having about 20 branches around the acquisition. Some large sit-down restaurants were converted into smaller units focused more heavily on delivery. Tabasco Holdings retained some restaurants and began using franchising to expand the brand’s presence in Israel. Niv Zilberstien became a shareholder in Tabasco Holdings in 2010. The network subsequently expanded again, reaching 50 branches in 2013 and 56 branches by September 2014. A later account reported 78 stores in October 2016. Because the business included both directly held and franchised locations, branch counts should be understood as reported network totals rather than a uniform measure of company-owned restaurants. Pizza Hut Israel’s product and operating model combines the international Pizza Hut format with Israeli market requirements. The menu includes deep-dish and thin-crust pizzas, salads, quiche, focaccia, desserts, and delivery meals. The operation is described as kosher throughout, with many branches holding mehadrin certification. Passover creates a specific operational constraint: under Israel’s Chametz Law, restaurants cannot serve chametz products during the holiday. Some branches therefore remain open with restricted offerings; 18 were reported open during Passover in 2014. The franchise network has included locations beyond Israel’s internationally recognized borders. Pizza Hut permitted a Palestinian-owned branch to open in Ramallah in 2012 without requiring an Israeli franchisee, while Israeli franchisees also operated locations in West Bank settlements. The settlement locations prompted boycott calls from critics who consider them contrary to international law. In August 2013, Pizza Hut Israel introduced mobile applications for Android and iPhone that gave customers real-time order-status tracking. The company also received substantial negative attention in May 2017 after its Twitter account posted an advertisement mocking Palestinian prisoners on hunger strike. Pizza Hut Israel apologized, removed the post, and terminated the public-relations agency responsible. The controversy added to boycott pressure already associated with the brand’s West Bank franchise presence. Shamai appeared as owner and chief executive in the third episode of the first season of Undercover Boss Israel in 2013.

• 2017

  Public-relations controversy

  [1]Pizza Hut Israelen.wikipedia.org

  Pizza Hut Israel removes a tweet mocking Palestinian hunger strikers, apologizes, and dismisses the responsible public-relations firm.

• 2013

  Mobile ordering applications and network expansion

  [1]Pizza Hut Israelen.wikipedia.org

  The chain releases Android and iPhone order-tracking applications and reaches 50 branches.

• 2012

  Palestinian-owned Ramallah franchise opens

  [1]Pizza Hut Israelen.wikipedia.org

  Pizza Hut permits a Palestinian-owned location in Ramallah without requiring an Israeli franchisee.

• 2010

  Niv Zilberstien joins Tabasco Holdings

  [1]Pizza Hut Israelen.wikipedia.org

  Zilberstien becomes a shareholder alongside Shamai.

• 2008

  Tabasco Holdings takes full local ownership

  [1]Pizza Hut Israelen.wikipedia.org

  Shamai buys Dor Alon’s remaining shares through Tabasco Holdings; the business emphasizes smaller delivery-focused stores and franchising.

• 2005

  Udi Shamai becomes a partner

  [1]Pizza Hut Israelen.wikipedia.org

  Shamai joins the ownership group while Dor Alon retains a 30 percent stake.

• 2002

  Dor Alon purchases Pizza Hut Israel

  [1]Pizza Hut Israelen.wikipedia.org

  The energy company acquires the chain from Shlomo Duhoki.

• 1996

  Shlomo Duhoki acquires the Israeli business

  [1]Pizza Hut Israelen.wikipedia.org

  Duhoki purchases Pizza Hut Israel from Clal Chains for US$12 million.

• 1990

  First Pizza Hut Israel restaurant opens

  [1]Pizza Hut Israelen.wikipedia.org

  Pizza Hut begins Israeli operations under master franchisee Clal Chains, a subsidiary of Clal Industries.

A mass-market kosher pizza chain combining Pizza Hut’s international menu and franchise identity with Israeli kosher supervision, local delivery operations, and market-specific holiday and regulatory adaptations.

• Pizza

  Deep-dish pizza

  A traditional Pizza Hut-style pizza format offered in Israel. It forms part of the chain’s core menu and is sold through restaurant and delivery channels, subject to the operation’s kosher requirements.

• Pizza

  Thin-crust pizza

  A thinner pizza format offered alongside the chain’s deep-dish product. It broadens the menu beyond the signature thick crust and supports the Israeli network’s delivery-focused operating model.

• Sides and complementary foods

  Salads, quiche, focaccia, and desserts

  Non-pizza menu items that extend Pizza Hut Israel’s offer beyond individual pizzas and meal bundles. The reported assortment includes salads, quiche, focaccia, and various desserts, with products prepared according to local kosher practices.

• 2017

  Mocking of Palestinian hunger strikers

  Pizza Hut Israel’s Twitter account published content ridiculing Palestinian prisoners on hunger strike. The company faced international criticism and additional boycott calls, then removed the content, apologized, and fired the responsible public-relations firm.

  Source

Read more

• 2017Twitter advertisement concerning Palestinian hunger strikers

  Israel · International

  A Pizza Hut Israel social-media post mocked Palestinian prisoners participating in a hunger strike. The incident became part of wider boycott activity directed at the brand.

  Outcome. The post was deleted, Pizza Hut Israel apologized, and the public-relations firm that created the advertisement was dismissed.

  Source

• 2013

  Launch of real-time order-tracking applicationsProduct launch

  Background

  Pizza Hut Israel was expanding its delivery-oriented business model and digital customer-service capabilities.

  Action taken

  The chain released Android and iPhone applications that allowed customers to track order status in real time.

  Aftermath

  The applications supported the network’s delivery proposition; no later performance data is provided in the reference material.

  Source

• 2012

  Approval of a Palestinian-owned Ramallah franchiseStrategy

  Background

  Some international fast-food chains operating in the West Bank used Israeli franchisees.

  Action taken

  Pizza Hut allowed the first Palestinian-owned Pizza Hut location in Ramallah to open without requiring an Israeli franchisee.

  Aftermath

  The company continued to face political criticism because other Israeli franchises operated in West Bank settlements.

  Source

• 2008

  Shift toward smaller delivery-focused locationsStrategy

  Background

  The network had contracted significantly from its 2002 branch count and was reported to have about 20 locations around the ownership transition.

  Action taken

  Some large sit-down restaurants were converted into smaller units, while Tabasco Holdings expanded the use of franchised locations.

  Aftermath

  The chain later returned to expansion, reaching 50 branches in 2013 and 56 branches in September 2014.

  Source

1. 1Pizza Hut Israelen.wikipedia.org