The ongoing drama at Aroma

Word that the Aroma Espresso Bar’s only kosher location in Canada was closing prompted The CJN Daily to kick off 2023 with a visit to the Toronto intersection of Bathurst and Wilson to find out why.

The letters on the sign had already been taken down, while a moving truck was parked outside as appliances and other fixtures were being removed.

After seven years, the Bitton family decided to pull the plug on this unique location among the cafés in the Toronto area—and they had just a few days to vacate the premises.

Michelle Bitton cited three factors in the closure: the death of family patriarch Claude Bitton in 2018, the impact of COVID lockdowns on the business, and having to follow menu rules instituted by head office in Israel.

Further investigation led us to discover that two other locations were shutting down. We also discovered an ongoing legal dispute between the former owners of Aroma Canada and the Israeli parent company.

An arbitrator ruled in 2022 that the head office owed $10 million (plus $1 million more in court costs) to Earl Gorman, the entrepreneur who first brought Aroma to Toronto in 2007, starting with a now-closed Annex neighbourhood location on Bloor Street.

The master franchise agreement with Aro- ma allowed Gorman to be the middleman, who could in turn sell sub-franchises to local entrepreneurs. A team led by Israeli expat Anat Davidzon helped realize the vision.

But after expanding to 46 locations across Ontario—located from Niagara Falls to Oshawa—the Canadian branch found itself in financial straits by 2017. Consultants were hired to look for savings and explore other options, including a sale.

Gorman was advised he could save $900,000 off the bat by finding a domestic coffee roast, rather than importing it from Israel. Head office worried a cheaper brew would hurt the brand’s reputation. Plus, they blamed the Canadians for putting the business in a state that required a big infusion of cash.

According to documents, the Toronto team felt their contract allowed for changes to the coffee supply.

Today, the originators of the Canadian operation are long gone. Current franchisees deal with CEO Elad Keren, an Israeli expat, who runs Aroma Global Inc.

The parent company owners were in a Toronto courtroom in mid-January arguing to have the $10-million award to Gorman set aside. Stay tuned to The CJN Daily podcast to hear how this saga turns out.

WEDNESDAY, JANUARY 11

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