Who Really Owns Aroma Cafe?

Aroma Cafe has had a complex ownership history, with several owners across the world. The original Aroma Cafe was founded by Michael Zur-Szpiro in London, England, in 1991. In 1999, McDonald's acquired the chain, which at the time had 23 locations, and sold the London outlets to Caffè Nero in 2002. The Argentine part of the chain was sold to Freddo, an ice cream chain, in 2004. Separately, Aroma Espresso Bar, an Israeli coffeehouse chain, was founded in 1994 by brothers Yariv and Sahar Shefa, and has since expanded globally with locations in the United States, Canada, Kazakhstan, and Ukraine. The rights to Aroma in Canada were secured by Earl Gorman, who is the majority owner of Aroma Canada.

McDonald's owned Aroma Cafe

McDonald's acquired the Aroma Cafe coffee chain in 1999 for £10.5 million. At the time, Aroma Cafe had 23 locations, roughly 300 employees, and was valued at £10 million.

Aroma Cafe was founded in London, England, in 1991 by Michael Zur-Szpiro, who wanted to bring a European-style cafe to the city. By 1999, the chain had expanded to Argentina, with its first location in Buenos Aires.

After acquiring Aroma Cafe, McDonald's expanded the chain in the UK and Argentina. However, in 2002, McDonald's sold Aroma's London outlets to Caffè Nero, which rebranded the chain to Neros. The Argentine part of the chain was sold in 2004 to Freddo, an ice cream chain owned by Pegasus Capital.

McDonald's acquisition of Aroma Cafe was notable because it was the first non-American chain that McDonald's had acquired to run as a separate brand. It was also the second company McDonald's had purchased ownership of outside its traditional fast-food offerings, with the first being Chipotle Mexican Grill.

Aroma Cafe was founded by Michael Zur-Szpiro

Before starting Aroma Cafe, Zur-Szpiro headed to the United States for schooling and worked as a consultant in Boston. He then returned to the UK, where he was employed at the London branch of Boston Consulting Group. In August 1989, he began working on a business plan for his cafe idea. He conducted extensive research by visiting sandwich shops and snack bars, and speaking with shop owners, commercial real estate companies, architects, designers, and coffee sellers.

Zur-Szpiro understood the financial uncertainty of starting a new business and was open to not having full ownership of his proposed coffee shop. He believed that venture capital would be a good fit and sought an investment partner who could provide consultation and accept his plan to invest substantially in the coffee shop's design. In March 1990, the venture capital firm Alan Patricof Associates contributed £2.5 million, which was 80% of the seed funding. Zur-Szpiro provided 15% of the funding, while a third investor provided the remaining 5%.

Zur-Szpiro enlisted the architecture firm ORMS Architects & Design to create a "bright, cheery, contemporary Mexican look" for Aroma Cafe. He wanted the cafe to offer a "15-minute holiday in the sun" to its customers. The first Aroma Cafe opened in December 1990 on Dean Street in London, with a combined indoor and outdoor seating capacity of 33. The cafe quickly gained popularity and reached the break-even point just four months after its opening.

Over the next few years, Aroma Cafe expanded to multiple locations in London, including Broadgate, Southbank Centre, Bond Street, and the Lakeside Shopping Centre. By 1995, the chain had 11 locations and sold over three million cups of coffee per year. In 1999, McDonald's acquired Aroma Cafe, and it was subsequently sold to Caffè Nero in 2002, which rebranded the chain to Neros.

In addition to the Aroma Cafe chain founded by Zur-Szpiro in London, there are other unrelated coffeehouse chains with similar names, such as Aroma Espresso Bar, which is an Israeli coffeehouse chain with locations in Israel, the United States, Canada, Kazakhstan, and Ukraine. Aroma Espresso Bar was founded in 1994 in Jerusalem by brothers Yariv and Sahar Shefa. There is also an Aroma Cafe in Thorp, Wisconsin, which was established in 2001 and is known for its unique blend of a coffee shop and a flower shop.

Aroma Espresso Bar was founded by brothers Yariv and Sahar Shefa

Aroma Espresso Bar, or simply Aroma, is an Israeli coffeehouse chain with locations across the world. It was founded in 1994 on Hillel Street in downtown Jerusalem by brothers Yariv and Sahar Shefa. The brothers borrowed $16,000 from their mother to open their first bar, offering customers high-quality coffee and made-to-order sandwiches and pastries.

The bar became incredibly popular, with customers enjoying the fast service, reasonable prices, and high-quality coffee and food. Aroma soon expanded beyond Jerusalem, opening new locations across Israel. In 2000, following a dispute between the two brothers, the business was split into two separate chains: Aroma Tel Aviv, run by Sahar, and Aroma Israel, run by Yariv. Aroma Tel Aviv operates in Tel Aviv-Yafo, while Aroma Israel is in charge of locations outside the city, including in the rest of Israel and worldwide.

Despite being separate companies, the two chains maintain similar branding, which has created the misconception that they are a common entity. To clarify their independence, Aroma Israel added labels to its products, emphasising the lack of "business, logistical, or management links" between the two.

Aroma continued its global expansion, opening its first overseas branch in SoHo, New York City, in 2006. The following year, Aroma opened its first location in Canada, in downtown Toronto, and its first branch in Kyiv, Ukraine. As of 2021, Aroma has 162 locations in Israel and several more in the US, Canada, Kazakhstan, and Ukraine.

In 2021, Aroma Tel Aviv and Aroma Israel merged under the name Aroma Espresso Bar, with Yariv Shefa as the current owner.

Aroma Cafe was sold to Freddo, an ice cream chain

Aroma Cafe, an Argentine coffee chain and a former British coffee chain, was sold to Freddo, an ice cream chain owned by Pegasus Capital, in 2004. The sale included all six of Aroma's branches in Argentina.

Aroma Cafe was founded in London, England, in 1991 by Michael Zur-Szpiro, who wanted to open a European-style cafe that served customers with simple snacks, delicious coffee, and pastries. The first Aroma Cafe opened in Dean Street, London, in December 1990. Over the years, the cafe expanded and became a popular coffee chain.

In 1999, McDonald's purchased Aroma Cafe for £10.5 million. However, in 2002, McDonald's sold the London outlets of Aroma Cafe to Caffè Nero, which rebranded the chain to Neros.

The Argentine part of the chain was then sold to Freddo in 2004. Freddo, owned by Pegasus Capital, is an ice cream chain. This sale marked the final divestment of all Aroma chains from McDonald's portfolio.

The acquisition of Aroma Cafe by Freddo allowed for the introduction of Freddo ice cream stands within the Aroma Ambiental locations. This strategic move enhanced the profitability of the Aroma cafes by offering a diverse range of products to their customers.

Aroma Espresso Bar has locations in the US, Canada, Kazakhstan, and Ukraine

Aroma Espresso Bar is an Israeli coffeehouse chain with locations in the US, Canada, Kazakhstan, and Ukraine. The chain was founded in 1994 on Hillel Street in downtown Jerusalem by brothers Yariv and Sahar Shefa. In 2006, the first Aroma Espresso Bar in the US opened in New York City's SoHo neighbourhood. The following year, the chain expanded to Canada with a location in downtown Toronto.

As of 2022, there are 46 Aroma Espresso Bar locations in Canada, primarily in the Greater Toronto Area, and five in the US across New York, New Jersey, Maryland, and Florida. The chain has since closed its locations in New York City and Maryland. Aroma Espresso Bar also has locations in Kazakhstan and Ukraine, though the number of branches in these countries is unclear.

The coffee chain serves Mediterranean-style sandwiches and salads, in addition to coffee. It is known for its modern and sleek ambiance, differentiating itself from the traditional cozy coffeehouse vibe.

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