McDonald’s has made the strategic decision to buy out all franchise restaurants in Israel to regain control after facing backlash and sales hits due to boycotts. This move comes after the chain’s Israel franchise became a focal point during the conflict in Gaza.
McDonald’s remains committed to the Israeli market and ensuring a positive experience for employees and customers. The chain plans to search for a new franchisee for its Israeli operations after finalizing the acquisition from Alonyal Ltd, which introduced the McDonald’s brand to Israel over 30 years ago.
Local franchise operators typically run McDonald’s stores worldwide as independent businesses. The company faced criticism from pro-Palestine activists last year when its Israel franchise offered free meals to Israeli soldiers, sparking backlash in other countries like Saudi Arabia, Malaysia, and Pakistan.
In response, McDonald’s CEO condemned violence and hate speech, expressing deep concern over acts of antisemitism and Islamophobia. The company saw a decline in fourth-quarter sales in the Middle East following the controversy, accounting for a small percentage of its global sales.
With the buyout, McDonald’s aims to take back control of its operations in Israel and ensure a positive trajectory for the brand in the region. The deal with Alonyal is set to be finalized in the coming months, paving the way for new franchise opportunities and growth in the Israeli market.
McDonald’s strategic decision to buy out its Israel franchise reflects its commitment to maintaining a strong presence in the region and addressing challenges that have impacted sales and brand reputation. Stay tuned for more updates as McDonald’s transitions to direct control of its operations in Israel.
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