KFC Israel

KFC's first Israeli branch opened in Tel Aviv in the late 1980s and subsequently closed.[1] The chain returned through franchisee Clal in 1993, beginning what would become a longer but still troubled run.[1] Ownership changed hands in 2003, when Dor Alon and businessman Udi Shamai took over the franchise; Dor Alon later sold its stake to Shamai in 2008.[1]

During the Shamai period the chain reached eight branches, but those locations closed in 2012 after Shamai concluded the business could not turn a profit.[1][2] Shamai attributed the failure primarily to the consequences of seeking kosher certification: the chain had initially used chicken supplied by the global company, whose coating contained milk powder, then switched in 2009 to a soy substitute that allowed kosher status.[2] As Shamai told Globes, "The moment we switched to kosher, sales began to plunge and it was no longer economically viable."[2] Reporting on the 2019 return said previous efforts to devise a kosher version had raised prices, eroded profitability, and impaired taste.[3]

A separate account from 2018 gives slightly different dates — describing a first opening in 1993, operations until 2013, and up to ten locations over that span — and notes that the franchise changed hands twice.[4] There is some variation between sources on the precise dates and branch counts of these earlier iterations.

The tension between KFC's original recipe and Jewish dietary law runs through the entire history of the brand in Israel. During the chain's earlier Israeli operation, KFC Israel announced that it would use a milk-flavored soy powder in place of standard milk powder in its coating, allowing branches to avoid mixing meat and dairy — a requirement of kosher law.[5] The global chain approved the substitute after two years of negotiations, with KFC's Dallas laboratories signing off on the soy powder.[5] KFC Israel stated that the new formulation was identical in flavor to the original and that customers had requested an option free of the meat-dairy combination.[5] At the time, the company operated ten Israeli branches, two of them certified strictly kosher, while the others continued to operate on Shabbat.[5]

When KFC announced its fourth return in December 2019, it explicitly abandoned further attempts to produce a kosher version of its chicken.[3] Research the company conducted indicated that a non-kosher menu appealed to more than 60% of Israel's population, and the company said it would not compromise on its original flavoring.[6] The decision reflected the lesson Shamai's franchise had drawn: that modifying the core recipe for kashrut changed the product in ways that undermined both customer satisfaction and commercial viability.[3]

KFC's fourth attempt to enter Israel was announced in December 2019. The global parent company led the Israeli operation, with former Coca-Cola Israel head Omer Zaidner managing locally.[3][6]

The first branch opened on February 3, 2020, at Paul VI Street 116 in Nazareth, a 240-square-meter restaurant on the city's main street near the Basilica of the Annunciation.[6][7] Dozens of people crowded the entrance before the official opening; another opening-day account described customers consuming meals as quickly as they could be cooked.[8][7] Zaidner called Nazareth a prime location due to its mix of local residents and international tourists, and said: "Israelis have waited a long time for KFC's freshly prepared Original Recipe® fried chicken."[8]

The menu at the Nazareth branch included fried-chicken buckets, wings, wraps, burgers, and chicken-breast and salad dishes, all prepared using the original, non-kosher Colonel Sanders recipe with a buttermilk-based coating.[7] Prices were reported to be slightly higher than in other markets.[8] KFC stated it had spent nearly two years preparing the relaunch — examining the market, securing franchisees and vendors, and scouting locations — and aimed for a rapid nationwide rollout rather than a slow, piecemeal expansion, targeting dozens of branches within three years.[8][7]

Nazareth was selected partly because of its profile as a popular tourist destination, and a Tel Aviv flagship was flagged as an early priority.[7] In June 2020 KFC announced two further branches: one at the Ali Mall site in Daliyat al-Karmel, opened almost immediately, and one planned for Beersheba's Cinema City later in the year.[9]

Growth continued through 2021, when KFC was preparing four additional restaurants — at the Ramla Lod Mall, Big Fashion Ashdod, and two further locations in Rosh Pina and Zikhron Ya'akov — as part of the expansion promised at the 2020 relaunch.[10] Company-sponsored material published in 2023 counted 14 branches operating across Israel, serving the original Colonel Sanders recipe, and said the locations were open on Saturdays and holidays.[11]

The Tel Aviv flagship opened in August 2023 at the Opera Tower complex on Allenby Street, near the beach, and operated daily from 11 a.m. to midnight.[12] That branch was reported as KFC's 17th Israeli location, with preceding openings having brought the chain to Haifa, Beersheba, Netanya, and other cities.[12] No KFC restaurants in Israel held kosher certification at that point.[12]

By early 2025 the Israeli operation was divided between two franchisees — described in reporting as one Arab and one Russian — and signs of financial strain had emerged.[13] On March 2, 2025, franchisee Mefco halted operations at eight KFC branches: Nof HaGalil, the Mul Kinneret location at Tzemach Beach, two Beersheba locations (Big and Cinema City), Ramla, Kfar Saba, Zikhron Ya'akov, and Yarka.[1][14] The eight closures represented roughly 40% of the chain's Israeli locations. Twelve branches operated by the other franchisee remained open: Tel Aviv, Givatayim, Rishon Lezion, Grand Canyon Haifa, Ashdod, Petah Tikva, Bilu Junction, Netanya, Ra'anana, Hutzot HaMifratz, Krayot, and downtown Haifa.[1][15]

Industry sources cited operational difficulties and declining sales.[13] A mall CEO reported a 25% year-on-year revenue decline at one location and said the war had hurt the chain, with its effects visible in the branch's appearance and reduced advertising investment.[16] KFC stated that Mefco had halted activity at eight branches and directed customers to the 12 remaining locations; Mako reported that the chain offered no explanation beyond "business reasons."[15]

Speculation on social media linked the closures to Ramadan and related staffing pressures, but those explanations were not confirmed by KFC or employees.[15] Reporting said KFC was considering transferring the branches to the other franchisee, while a Ynet report presented a sale or transfer as an estimate rather than a completed deal.[1][16] A September 2026 report indicated that Mefco had since left the network entirely and a new franchisee had taken over; it relayed anonymous-source claims that KFC was weighing options that could include further reducing its Israeli footprint, though KFC's local marketing department said the branches were operating normally and the company had made no announcement of an intention to leave Israel.[17]

Sources do not fully agree on the chronology of KFC's pre-2020 Israeli history. One account describes attempts in the 1980s and 1990s and again from 2003 to 2012, with the renewed entry identified as KFC's fourth attempt to establish itself in Israel.[2][6] A separate report gives different dates, placing the chain's first opening in 1993, its closure in 2013, and noting that the franchise changed hands twice over that span.[4] Calcalist's account adds the detail of the late-1980s single-branch opening, then a return through Clal in 1993, the 2003 ownership change, Dor Alon's exit in 2008, and final closure in 2012.[1]

The explanation for the earlier failures — that recipe changes required for kashrut harmed taste, raised prices, and ultimately made the business unviable — is drawn from franchisee statements and industry reporting rather than independently verified records.[2][3] Similarly, the reasons for the March 2025 closures remain partially contested: industry reporting and a mall executive linked the difficulties to revenue declines and the effects of the war, while KFC offered no specific cause and social-media theories remained unconfirmed.[16][15]