2024-04-05 18:15:54
McDonald’s will buy back all of its Israeli restaurants following a boycott of the brand after it was criticized for providing thousands of free meals to Israeli soldiers, according to the BBC.
The fast food giant said it had reached an agreement with franchisee Alonial to bring back 225 outlets across the country employing 5,000 people.
It admitted in January that the conflict had “significantly impacted” its business, with widespread protests affecting sales in the Middle East, Indonesia and France.
Alonial, led and owned by CEO Omri Badan, has operated McDonald’s restaurants in Israel for more than 30 years.
McDonald’s uses a franchise system which means that individual operators are licensed to operate outlets and employ staff.
The McDonald’s boycott erupted after Muslim-majority countries issued statements distancing themselves from the company over its apparent support for Israel.
Protests were held around the world as the popular boycott spread beyond the Middle East, and in addition to restaurants in the region, McDonald’s businesses in France, Indonesia and Malaysia were also affected.
At the beginning of the year, McDonald’s CEO Chris Kempczinski blamed the backlash on “misinformation,” but it hurt the company’s financials nonetheless, which missed its first quarterly sales target in nearly four years.
McDonald’s called the boycott “disheartening and baseless.”
The company relies on thousands of independent companies to own and operate most of its more than 40,000 stores around the world. About 5 percent of them are located in the Middle East
“In every country we operate in, including Muslim countries, McDonald’s is proudly represented by local owners,” Kempczinski said at the time.
The McDonald’s president added: “As long as this war continues… we do not expect to see any significant improvement in these markets.”
The company hopes that by bringing Israeli business “onshore” it can restore its reputation in the Middle East and achieve its key sales goals again.
Last updated: April 5, 2024 – 18:58
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2024-04-05 18:15:54