2024-04-06 05:14:12
New details about the decision of Omri Padan's Exit from McDonald's Israel: Money Wins Over Support for Soldiers”>McDonald’s worldwide to acquire the local franchisee were revealed tonight in an article published on CNBC.
According to the article, what preceded the purchase were months of a dramatic drop in the chain’s sales following a boycott by consumers around the world, and especially in countries with an Arab and Muslim majority, who boycotted the brand against the background of what they perceive as support for the war in Israel, which the chain denies.
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According to the article, at the center of the controversy was a decision by Amri Fedan, the owner of the chain in Israel, to distribute meals to soldiers after the October 7 massacre.
In January, McDonald’s CEO Chris Kempczynski described a “significant business impact” on the chain’s Middle East market and in some countries beyond the region, such as Muslim-majority Malaysia and Indonesia, as a result of the war and what he called “misinformation” linked to the company .
“We are alarmed by the disinformation and inaccurate reports regarding our position in response to the conflict in the Middle East,” McDonald’s said in a November statement.
“McDonald’s Corporation does not fund or support any governments involved in this dispute, and all actions by the local business partners of the development licensees were done independently without McDonald’s approval.”
The boycott didn’t help, according to CNBC, sales of McDonald’s franchises in several Arab countries dropped between 50% and 90% a month after the boycott.
In addition, in Lebanon, protesters attacked and vandalized local McDonald’s restaurants, and crowds of pro-Palestinian protesters in London surrounded some of the chain’s branches shouting “shame on you”.
The company’s stock has fallen by 10% since the beginning of the year and by 5.5% in the last 12 months.
And how will the deal solve McDonald’s problems? The purchase “will give it more control over its brand, after losses related to the operations of its Israeli franchisee,” wrote Monica Marks, a professor of Middle East politics at New York University Abu Dhabi, in a post on X.
Omri Padan held the franchise in Israel for about three decades and operated 225 stores employing 5,000 workers.
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