In response to falling revenues in its Middle Eastern market, McDonald’s Corporation has effectively purchased all 225 of its Israeli restaurants from the local franchise, Alonyal Ltd., marking the end of a 30-year-old partnership. This move comes after the widespread boycott of the fast-food giant in Arab and Muslim-majority countries, sparked by allegations of its support for Israel – claims the US-based corporation adamantly denies.
Alonyal Ltd., helmed by Israeli businessman Omri Padan, has owned the Israeli branches since their inception. Despite growing the brand to become Israel’s most successful restaurant chain, the organization has now agreed to hand ownership back to the corporate entity in an undisclosed financial deal. The terms of the agreement ensure that all employees retain their positions under identical contracts.
McDonald’s has faced significant pushback especially after McDonald’s Israel provided free meals to Israeli soldiers amidst an ongoing conflict with Hamas. This contentious act catalyzed boycotts in numerous countries and subsequently impacted the revenue, with the company reporting its first revenue miss in nearly four years in February.
Concurrently, widespread criticism and boycotts targeting other prominent American brands such as Coca-Cola, Pepsi, and Starbucks have been observed, particularly in areas with significant Palestinian populations like Jordan. However, McDonald’s reiterated its commitment to the Israeli market, the employees, and to enhance the customer experience in the country.
– McDonald’s Corporation is buying all its 225 Israeli outlets from Alonyal Ltd.
– Alonyal Ltd. has owned the franchise for over 30 years.
– The company reported its first revenue miss in almost four years due to boycotts from Arab and Muslim-majority countries.
– The boycott action stemmed from claims of the corporation’s support for Israel, especially after the Israeli franchise provided free meals to Israeli soldiers during the Israel-Hamas conflict.
– Despite the backlash, McDonald’s remains committed to the Israeli market.
**References:**
1: CNBC: McDonald’s to acquire all 225 Israeli franchise outlets following boycott fallout
2: NPR: McDonald’s announces buyback of all Israeli franchises
3: Business information from McDonald’s Corporation
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