McDonald's buys back all 225 Israel franchise restaurants after they gave free meals to IDF soldiers - sparking boycott in Middle East and other Muslim countries that caused 'meaningful' impact on profits
By Zac Campbell
Daily Mail
Apr 5, 2024
McDonald's was targeted with boycott calls after the franchised restaurants in Israel offered thousands of free meals to Israeli soldiers
Fast food chain McDonald's will buy back all of its Israeli restaurants following a boycott of the brand after it was criticised for giving away thousands of free meals to Israeli soldiers.
The move to donate meals to troops was later renounced by McDonald's franchises in some Muslim countries, highlighting the polarized regional politics that global corporations navigate during war.
Some Western brands are feeling the impact of boycotts in Egypt and Jordan that have now caught on in some countries outside the Arab region including Muslim-majority Malaysia.
The popular chain said it had reached an agreement with franchisee Alonyal for 225 outlets across the country employing 5,000 people.
McDonald's decision comes after widespread protests at its decision to give out free meals affected sales in the Middle East, Indonesia and France.
Fast food chain McDonald's will buy back all of its Israeli restaurants following a boycott of the brand after it was criticised for giving away thousands of free meals to Israeli soldiers
The popular chain said it had reached an agreement with franchisee Alonyal for 225 outlets across the country employing 5,000 people
McDonald's is a global chain but
its franchises are often owned locally and operate autonomously, with
Alonyal operated McDonald's restaurants in Israel for more than 30 years. SUV filled with free meals for IDF soldiers is pictured
McDonald's is a global chain but its franchises are often owned locally and operate autonomously, with Alonyal operated McDonald's restaurants in Israel for more than 30 years.
Jo Sempels, president of international developmental licensed markets at McDonald's Corporation, thanked Alonyal 'for building the McDonald's business and brand in Israel over the past 30 years'.
Mr Sempels added: 'McDonald's remains committed to the Israeli market and to ensuring a positive employee and customer experience in the market going forward.'
Allyson Stewart-Allen, CEO of International Marketing Partners, said that by buying back its restaurants, McDonald's was looking to send a message of reassurance to customers in Israel.
Speaking to iNews, she said: 'They are saying by implication, this won't happen again.
'I think they are telling customers by buying back the business that we are taking back control.'
Ms Stewart-Allen added that such a move by the company indicates McDonald's franchisees could be tightened globally as a result of the row, while suggesting that it posed a similar challenge for other large global brands with franchises.
'They too will now be thinking, we probably need to tighten up what they are allowed to do, because they don't want to suffer the same,' said the author of Working with Americans.
'McDonald's is a lesson for all global brands generally.'
It comes after McDonald's CEO Chris Kempczinski admitted in January that the company has seen 'meaningful impact' in several markets in the Middle East and some outside the region due to the Israel-Hamas conflict.
In December, McDonald's Malaysia blamed a boycott from pro-Palestinian activists for a drop in its profits, which it said had led to job cuts and closures.
It came as the company announced legal action against Malaysia's Boycott, Divestment and Sanctions campaign over social media posts which called on consumers to avoid McDonald's over Israel's 'genocidal war'.
On Thursday, the company said: 'McDonald's remains committed to the Israeli market and to ensuring a positive employee and customer experience in the market going forward.' It also thanked Alonyal for building the brand in Israel.
In October, McDonald's Israel also highlighted 'false information' as it denied that it had been showing support for Palestinian organisations.
'In every country where we operate, including in Muslim countries, McDonald's is proudly represented by local owner operators,' Mr Kempczinski said at the time.
'So long as this war is going on... we're not expecting to see any significant improvement [in these markets],' the McDonald's boss added.
Around 1,200 Israelis were killed by Palestinian terrorist group Hamas on October 7. Israeli bombardments have since killed more than 22,400 in Gaza.
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