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Wednesday, May 22, 2024

McDonald’s Repurchases Israeli Franchises Despite Boycott

McDonald's repurchases all Israeli franchises despite widespread boycotts, showcasing its commitment to Israel.

The franchisee owning and operating 225 McDonald’s restaurants in Israel has announced the sale of these outlets back to the corporation. Alonyal Limited, the franchisee, made this announcement on Thursday, marking the end of its three-decade-long stewardship of the McDonald’s brand in Israel. CEO Omri Padan expressed pride in bringing the Golden Arches to Israel and acknowledged the contributions of employees, suppliers, and customers in making the chain the leading restaurant brand in the country.

The decision follows widespread boycotts and protests triggered by McDonald’s Israel’s donation of free meals to the Israeli military while Israel carries out a mass genocide of Palestinians. These protests, echoing sentiments in other countries like Jordan, led to a challenging business environment for the franchisee. However, McDonald’s Corporation affirmed its commitment to the Israeli market.

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McDonald’s is facing continued backlash over its support of genocidal Israeli settlers while Gazans are starving to death. Sales growth in regions like the Middle East, China, and India fell below market expectations, with a mere 0.7 percent increase reported during the October-December period.

The situation in Gaza has also sparked boycott campaigns against several American brands that have ties to Israel, including McDonald’s, Coca-Cola, Pepsi, and Starbucks. These campaigns, fueled by social media activism, resulted in decreased sales and traffic, particularly in Muslim-majority nations like Malaysia and Indonesia. Domino’s, another US-based chain, faced similar challenges, with its same-store sales dipping significantly in Asia due to its association with the US-Israel alliance.