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A fresh row has erupted between a Sydney cafe and a pro-Israel activist over a stunt described internally by The Daily Telegraph as “undercover Jew”, just hours after the tabloid apologised for causing distress to the inner-city eatery and its staff.
Ofir Birenbaum entered Cairo Takeaway, a popular Egyptian restaurant in Newtown known for its public support of Palestine, wearing a Star of David cap. A Telegraph journalist was in tow to capture any reaction.
Birenbaum subsequently filed Federal Court defamation proceedings against the restaurant over comments made after the incident. It returned fire with a cross-claim against him.
The Telegraph, which was not a party to the litigation, published a joint statement on Monday with Birenbaum and Cairo Takeaway that said the disputes had been “resolved on confidential terms” and noted the “parties hope that the fact of a resolution can be a positive example for others”.
In the statement, the News Corp outlet apologised for causing distress to the cafe and its staff, and Cairo Takeaway apologised to Birenbaum.
It appeared to mark the end of the dispute, but a flurry of further statements has cast that resolution in a different light.
Birenbaum said in a separate statement on Monday that he had been “completely vindicated” by the settlement and “[this] was never a stunt”. Rather, it was “legitimate public interest journalism at a time when antisemitism in Sydney was escalating, visible, and dangerous”, he said.
His lawyer, Rebekah Giles, said in her own statement that the settlement was “an important win” for her client and the Australian Jewish community.
“Public interest journalism matters,” she said. “Full credit must go to Ofir Birenbaum for having participated in this exercise at a time of increasing antisemitism.”
In response, Cairo Takeaway issued a statement via its lawyers, O’Brien Criminal & Civil Solicitors.
“Cairo Takeaway did not intend to make any statement about the confidential settlement of the legal dispute,” it said.
“A joint statement had been agreed between the parties, and it was specifically agreed that nothing inconsistent with that statement would be published.”
They said the further statements were “inconsistent with that joint statement in both word and spirit”.
“Cairo Takeaway disputes Mr Birenbaum’s categorisation of the … operation that he engaged in with the Daily Telegraph as ‘legitimate public interest journalism’.
“It is hard to believe that the Daily Telegraph would apologise for the distress it caused to the staff and owner of the Cairo Takeaway if it currently viewed the story as ‘legitimate public interest journalism’.”
The restaurant’s owner, Hesham El Masry, said the further statements were “disappointing”.
“We thought there would just be the joint statement and we could all then move on with our lives,” he said.
Documents leaked to online media outlet Crikey shortly after the incident in February last year revealed the News Corp publication had orchestrated the story under the name “UNDERCOVERJEW”.
It was intended to lift the lid on “what it’s like being Jewish in Sydney” and proposed using “video glasses” to film the interactions, according to an internal planning document.
The incident caused an immediate stir and prompted a flurry of headlines – for news outlets other than the Telegraph. Video footage emerged of a hospitality worker berating News Corp journalist Danielle Gusmaroli as she left the restaurant with a photographer and videographer.
Birenbaum launched Federal Court defamation proceedings against Cairo Takeaway in August last year. The case was listed for a seven-day hearing from May 18.
Birenbaum had denied the cafe’s version of events, which were posted to its Instagram page. He also denied wearing smart glasses to film the interaction.
In response, the cafe launched a cross-claim against Birenbaum for alleged trespass.
“On 11 February 2025, Jewish man, Ofir Birenbaum, who was wearing a Star of David cap and pendant, and representatives from the Daily Telegraph newspaper, entered the Cairo Takeaway in Newtown, resulting in an incident with Cairo Takeaway staff,” the joint statement said.
“All parties are pleased that the legal disputes arising from this incident have now been resolved on confidential terms.”
Cairo Takeaway said it “accepts that Mr Birenbaum was polite to staff when he entered the premises and purchased a drink” and apologised unreservedly to him “for the false and defamatory statements to the media, Instagram posts and comments by members of the public” directed at him on its social media accounts.
“The Daily Telegraph acknowledges that entering the Cairo Takeaway without notice, to see if Mr Birenbaum would be treated differently for the purpose of a news article, caused distress to the staff and owner of the Cairo Takeaway.
“The Daily Telegraph unreservedly apologises to Cairo Takeaway and their staff for causing that distress.”
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