McDonald’s is set to buy back all 225 outlets of its Israel franchise after the restaurant saw boycotts due to free meals being donated to Israeli troops.
The fast-food giant has been the subject of protests and fully-fledged boycotts since Alonyal Ltd, the company that currently owns and operates McDonald’s restaurants across Israel, caused outrage after declaring that it would be donating free meals to the Israeli Defense Forces shortly after Hamas’ attack on October 7.
Despite McDonald’s being Chicago-based, its business model sees restaurants worldwide both run and owned locally. Alonyal is in charge of 225 locations across the nation which employ 5,000 people. “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, said in a statement.
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McDonald's said it remains 'committed to the Israel market' despite sales slump (Getty Images)McDonald’s responded that it “remains committed to the Israeli market and to ensuring a positive employee and customer experience in the market going forward”. The American restaurant chain will own all of Alonyal’s outlets and run its operations after the transaction goes through in the coming months, it announced on Thursday. All employees will be retained.
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The Israel-Hamas war has had a “disheartening” effect on sales across the Middle East and other Muslim-majority countries across the globe, McDonald’s CEO Chris Kempczinski announced in February. He said: “So long as this conflict, this war, is going on… we’re not expecting to see any significant improvement in this.”
“It’s a human tragedy, what’s going on, and I think that does weigh on brands like ours.”
While McDonald’s was previously expected to exceed market growth of 5.5% across the Middle East, China and India, estimations were clearly overshot as the figure slumped to just 0.7%. It came as Muslim-majority countries called for a boycott of the fast food chain following Alonyal’s pledge of free meals for Israeli soldiers. Franchises across Egypt, Jordan and Saudi Arabia collectively pledge millions of dollars in aid to Palestinians living on the Gaza Strip.
All 5,000 employees will be retained during the buy-back deal (ATEF SAFADI/EPA-EFE/REX/Shutterstock)For all the latest news, politics, sports, and showbiz from the USA, go to
Another American food and beverage giant, Starbucks, has also faced boycotts over its perceived pro-Israeli stance and alleged financial ties to the nation. Also in February, CEO Laxman Narasimhan said that the company has seen a “significant impact on traffic and sales” in the Middle East – but also in its native United States.
Dominos, the Pizza takeaway chain, has faced similar trials and tribulations after social media posts claimed without any evidence that Israeli soldiers were receiving free meals from the company. Its association with America – and with it, a staunch ally of Israel – saw sales figures decrease by 8.9% in the second half of 2023 across Asia, according to a company official.
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