To keep the branch open on Shabbat: Tiv Taam acquires land in Ashdod for 41 million shekels

Tiv Taam is already preparing today for the possibility that it will be required to leave its branch at the Star Center in Ashdod in about three years. In the second quarter reports of 2026, the company reveals that at the end of June, it purchased through its subsidiary Tiv Taam Assets a plot of about 6,000 square meters in the city's western industrial zone for 40.8 million shekels. It intends to build a new branch on the site, which is supposed to open during 2029 — the same year in which, according to the company, its lease agreement at the existing branch in the city is expected to end.

According to Tiv Taam, the land purchase was intended, among other things, to ensure the chain has an alternative in advance, given the possibility that the engagement at the current property will not continue after the contract ends. The company also links the concern to issues of religion and kashrut, and to the fact that it is a chain identified with non-kosher activity and with opening on Shabbat. However, the report itself does not state that a decision was made by the complex owners not to renew the lease, and the company defines the new land as a site designated for the establishment of an additional branch.

The background to the move also includes a complicated legal relationship surrounding the existing branch. In the reports, Tiv Taam notes that the property owners at the Star Center filed an eviction lawsuit against it. On June 24 of this year, the parties reached a compromise agreement as part of a mediation process, which also included an addition to management fees, and the agreement received the force of a court judgment. Just five days later, on June 29, Tiv Taam signed the purchase of the new land in Ashdod.

This is a significant investment for a chain that currently operates 47 branches across the country. The land alone cost about 40.8 million shekels, as mentioned, even before the costs of planning and building the branch. According to the report, the completion of construction and opening to the public are expected during 2029, subject to approvals and planning schedules. However, Tiv Taam, which usually holds lease agreements for its branches, does not intend to change its operating model. The branch in Ashdod, according to the company, is significant and important — and therefore the investment in buying the land was made.

At the same time, Tiv Taam continues to expand its footprint: in July, a Deli Market branch was opened in Rishon LeZion, and additional branches are planned in Shoham and Pardes Hanna.

Revenues of 555.8 million shekels

Beyond that, the company's reports submitted today to the stock exchange show a positive quarter for the group, with revenues totaling about 555.8 million shekels, an increase of 3% compared to the corresponding period. On the bottom line, the company recorded a profit of about 25.4 million shekels, an increase of 3.2%. Excluding one-time expenses recorded following the financial dispute in the Mizrach u-Ma'arav deal, the adjusted profit amounted to about 28 million shekels, an increase of 13.9%.

Retailer revenues also rose by about 1% to about 425 million shekels, while sales in identical stores, one of the central indicators for examining the performance of a food chain, grew by 0.7%. Tiv Taam attributes the growth, among other things, to the continued growth in online, sales through Wolt, and the TivClub customer club.

On the other hand, the trade sector continues to be a more significant engine for the group. Its revenues rose in the quarter by 6.5% to about 160.4 million shekels. The improvement stemmed, among other things, from Mizrach u-Ma'arav, the Asian food importer in which Tiv Taam completed the purchase of all shares this month, as well as from the strengthening of the shekel, which lowered the costs of imported products.