There is often the need to take a critical study of business activity, alliance, corporate rhetoric, and leverage to understand the stance of multinational corporations on sensitive geopolitical matters. The case of The Cheesecake Factory—a popular American company known for its cheesecakes and extensive menu—may be interesting when examining its activities in Israel. In November 2017, the Cheesecake Factory was already noticeable in Israel, in terms of its business presence. When it first moved to the Israeli market, it established a small shop of 20 square meters at Sharonim Mall in Hod Hasharon.
They have since expanded to a few locations, including major shopping malls in Tel Aviv such as Sarona Market, Dizengoff Center, and TLV Fashion Mall. The attention these restaurants in Israel give to the sale of cheesecakes, whole cakes, or slices takes precedence over the entire menu items as those found in the full-service restaurants in the United States. Local clients seeking an American confectionary journey will be hooked by the prices, which range between approximately 30 shekels per slice and 220 shekels for extra-large cakes. These elements demonstrate a well-defined company plan: By operating in major cities where there is a growing demand for well-known American brands, the Cheesecake Factory is actively investing in and profiting from the Israeli consumer market.
Licensing and international expansion strategy
The Cheesecake Factory uses a combination of corporate ownership in the United States and international license agreements to run its business. The business uses licensing agreements with regional partners in charge of local operations for its Middle East operations, which include the Gulf nations and Israel. For example, the expansion into Kuwait, Saudi Arabia, UAE, Qatar, and Bahrain is managed by the Kuwaiti company M.H. Alshaya Co., which manages more than 70 brands in 19 countries.
Although the Israeli licensing structure is not specifically described on the company’s website, it is consistent that local licensees, rather than direct corporate management, are usually in charge of outside markets. Under this model, daily operations are run locally while adhering to corporate quality standards, even though The Cheesecake Factory brand is present in Israel.
Political positioning and corporate statements
The publicly available sources and official company messages did not reveal any statement made explicitly and directly by the CEO and the board of The Cheesecake Factory regarding their stance on Israel and the Israeli-Palestinian conflict. They avoid entering the political arena or maintaining affiliations or endorsements, but valuable corporate information, about-us pages, etc., emphasize the quality of food and their origin, charitable donations to such organizations as the Oscar and Evelyn Overton Charitable Foundation, and foreign expansion plans. In comparison with some companies that publicly support causes or give up relationships to take a stand on politics, Cheesecake Factory appears to adopt a neutral official stance, at least regarding the importance of its brand and product and not its geopolitical association.
Cultural and community involvement in Israel
The Cheesecake Factory is basically a business operation; however, its operations in Israel also fit in with holiday and cultural events in the area. The interesting point here is that the Israeli importers and managers attempt to make their products and services familiar to the Jewish holidays like Shavuot, and this holiday has its specific connections with dairy foods, including cheesecake. The efforts of certifying cheesecake ingredients as kosher are in order to be mindful of the local religion-related food laws, a way of encouraging the acceptability of a particular food item in Israeli society. By catering to local market preferences, the chain establishes a rapport with Israeli customers without necessarily taking a political stand. This demonstrates a sincere commercial commitment.
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