On April 4, 2024, McDonald’s announced plans to buy back all of its Israeli restaurants following a boycott campaign triggered by perceived support for Israel. The fast food giant faced criticism after its Israeli franchise provided thousands of free meals to Israeli soldiers, sparking widespread protests and a decline in sales.
McDonald’s has reached a deal with franchisee Alonyal to return 225 outlets, citing the impact of the Israel-Hamas war on business. Alonyal, led by chief executive Omri Padan, has operated McDonald’s restaurants in Israel for over 30 years.
The boycott originated in Muslim-majority countries like Kuwait, Malaysia, and Pakistan, escalating after the franchisee’s social media posts revealed donations to Israeli military units. The protests spread globally, affecting McDonald’s businesses in the Middle East, Indonesia, and France.
Despite the backlash, McDonald’s remains committed to the Israeli market, thanking Alonyal for its contributions. The US company plans to retain the restaurants, operations, and employees in Israel under equivalent terms.
McDonald’s chief executive, Chris Kempczinski, attributed the negative impact on sales to misinformation and expressed disappointment at the boycott. The company operates through independent businesses worldwide, with only 5% of its 40,000 stores located in the Middle East.
The move to repurchase the Israeli restaurants aims to restore McDonald’s reputation in the region and meet sales targets. The ongoing conflict in the Gaza Strip underscores the complexities surrounding the issue, with hopes for improved relations in the future.
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