Home Business McDonald’s to acquire all Israeli restaurants after criticism

McDonald’s to acquire all Israeli restaurants after criticism

10
0

McDonald’s, the global fast food giant, announced its decision to repurchase all its restaurants in Israel following a boycott sparked by the Israel-Hamas conflict. The move comes after franchisee Alonyal faced criticism for offering free meals to Israeli soldiers, leading to a decline in sales during the conflict.

The agreement, signed with Alonyal, entails the acquisition of 225 outlets across Israel, employing 5,000 individuals. McDonald’s emphasized its commitment to the Israeli market, ensuring the retention of restaurants, operations, and employees under equivalent terms.

 

The boycott gained momentum in Muslim-majority nations like Kuwait, Malaysia, and Pakistan, accusing McDonald’s of supporting Israel. Global protests ensued, affecting the company’s performance in regions like France, Indonesia, and Malaysia.

McDonald’s CEO, Chris Kempczinski, attributed the sales downturn to misinformation but acknowledged its impact on quarterly targets. Describing the boycott as “disheartening and ill-founded,” the company aims to restore its reputation by managing the Israeli business directly.

With hopes of regaining market confidence amidst ongoing conflict, McDonald’s seeks to overcome challenges and meet its sales objectives in the region.

The Israel-Hamas conflict has resulted in devastation in the Gaza Strip since its outbreak in October, claiming thousands of lives and exacerbating humanitarian crises.