How it started
Israel
Cofix's entrance into the market caused a significant reduction in take-away coffee prices in Israel, notably in the Aroma Espresso Bar chain, which was forced to reduce take-away coffee prices. Some stores and chains reduced prices on coffee, sandwiches, and other products similar to Cofix's to NIS 5 to compete. This has been termed the Cofix Effect in major mass media outlets. Cofix's entry into the market has been compared to the "cellular revolution" which took place in Israel a few years prior and saw massive reductions in cellular communication prices.
Cofix's business model has led to a number of competitors, but as of 2015, only the Cofizz chain has remained as a major competitive force in the same market segment. The major coffee and fast casual restaurant chains, such as Aroma Espresso Bar, Café Café and others, also compete with Cofix. In late 2013, the Israel Antitrust Authority investigated claims that these chains coordinated prices in order to hurt Cofix's position.
Cofix operates both directly and through franchisees. Its first franchise was granted in March 2015 for the King George Street branch in Tel Aviv. In 2015, it entered the Tel Aviv Stock Exchange through the shelf corporation AGRI. The public owns 15.5% of the company. In January 2016, Cofix partnered with Israeli burger chain Burgeranch that would see Cofix products sold next to Burgeranch ones.
Cofix was set to open a factory in Yavne for supplying the chain with 13,000 sandwiches each day.
In June 2015, Cofix opened a supermarket chain, called Super Cofix, that contains a relatively small number of common items sold at competing chains, in smaller packages so they can be sold for a fixed price of NIS 5. The business model calls for a gross profit of 22–23%. Some major manufacturers, such as Tnuva, created new packaging lines to be able to supply Super Cofix.
From Wikipedia’s article on Cofix Group Ltd, shared under CC BY-SA 4.0.2