McDonald’s will buy 225 Israel restaurants after sales losses from pro-Palestine boycotts

McDonald’s will buy 225 Israel restaurants after sales losses from pro-Palestine boycotts

The protests came after McDonald’s Israel said it would donate free meals to the Israeli military.

BY Tracy Brown Hamilton

The McDonald’s Corporation has announced it will take over ownership of the 225 restaurants that make up its Israeli franchise after signing an agreement with Israeli company Alonyal Limited, which oversaw McDonald’s’ operations in the country in the decades since the brand was first introduced there.

“We thank Alonyal Limited for building the McDonald’s business and brand in Israel over the past 30 years,” Jo Sempels, president of International Developmental Licensed Markets at McDonald’s Corporation, said in a statement. “McDonald’s remains committed to the Israeli market and to ensuring a positive employee and customer experience in the market going forward.”

The move comes after the franchise experienced drastically lower sales after months of pro-Palestine protests and boycotts, which followed McDonald’s Israel’s announcement that it would donate free meals to the Israeli military shortly after the October 7 (October 6 by Israel’s time zone) Hamas-led attack on Israel. At the time, McDonald’s Israel shared on its social media accounts that the meals would go “to all those who are involved in the defense of the state, hospitals, and surrounding areas.”

McDonald’s CEO Chris Kempczinski stated in January that the company has observed a “meaningful impact” in various Middle Eastern markets and some beyond due to the Israel-Hamas conflict. Earlier this year, McDonald’s reported its first quarterly sales miss in nearly four years, with sales growth in areas including the Middle East, China, and India at 0.7%—far below its 5.5% predictions, according to London Stock Exchange Group data.

 

The approximately 5,000 employees of the Israel-based restaurants will retain their positions under their existing terms.

“For more than 30 years, Alonyal Limited has been proud to bring the Golden Arches to Israel and serve our communities,” Omri Padan, CEO and owner of Alonyal Limited, said in a statement. “We’ve grown the brand to be the leading and most successful restaurant chain in Israel and are grateful to our management, employees, suppliers, and customers who made this possible. We are encouraged by what the future holds.”

 


ABOUT THE AUTHOR

Tracy Brown Hamilton is an Irish-American journalist based in the Netherlands. 


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