Up-and-coming businesses are looking to challenge the status-quo of the Israeli coffeehouse market by developing new pricing models to attract more consumers and bring down the prices of larger businesses.

According to the USDA Economic Research Service, Israeli consumers spent 15.9 per cent of their expenditures on food in 2012, more than many other OECD countries, with new business owners now looking to develop a place in the lucrative market.

One business, Cofix, a new take-away discount coffee chain, has developed a pricing model that gives customers access to anything on their menu for NIS 5 (US$1.40, £0.80, €1). The chain offers all kinds of coffee, sandwiches, salads and even tall cans of Coca-Cola for the standardised amount.

“This is a revolution,” said Cofix CEO Avi Katz, whose previous venture Hakol Bedolar gave consumers ‘everything for a dollar’.

“Every product, all the raw materials, are cheaper now than they used to be. Coca-cola used to be 40 agorot more. Yet everything we buy in the food sector is more expensive.”

The soon-to-be chain has just opened its first Ibn Gvirol pilot store in Tel Aviv, but is in the process of opening ventures on King George Street and Haarba Street in the coming weeks. Cofix also has Bank Hapoalim on board to help fund 100 franchises.

Another business with growing popularity in the region is CUPS, a smart-phone app that offers users monthly subscriptions for unlimited coffee at participating cafes, having launched last September.

A video demonstrating the CUPS service is available here: http://lei.sr?a=8I7X6