McDonald’s to buy back all its Israeli restaurants amidst boycott.
In response to the Israel-Hamas conflict, global fast-food giant McDonald’s announces its decision to buy all of its Israeli restaurants.
This move follows a significant boycott of the brand in the region.
Agreement Reached:
McDonald’s has finalized an agreement with its franchisee Alonyal to regain control of 225 outlets across Israel, employing approximately 5,000 individuals.
The decision comes after Alonyal faced backlash for distributing free meals to Israeli soldiers during the conflict.
Sales Slump and Criticism:
Sales in the region have plummeted since the outbreak of the conflict in October.
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McDonald’s faced criticism from various quarters, including Muslim-majority countries like Kuwait, Malaysia, and Pakistan, which distanced themselves from the brand due to perceived support for Israel.
Impact on Performance:
Acknowledging the significant impact of the conflict on its performance, McDonald’s reported declines in sales particularly in France, Indonesia, and Malaysia.
The company missed its quarterly sales target for the first time in nearly four years.
Response to Boycott:
McDonald’s described the boycott as “disheartening and ill-founded,” emphasizing its reliance on local owner-operators worldwide.
The company CEO attributed the backlash to misinformation but acknowledged its negative impact on the bottom line.
Hope for Restoration:
By bringing the Israeli business back under its control, McDonald’s aims to restore its reputation in the Middle East and meet its sales targets once again.
The move signals a strategic effort to regain trust and improve performance in the region.
Humanitarian Crisis:
The announcement comes amidst ongoing devastation in the Gaza Strip, with thousands of casualties reported since the outbreak of military operations in October.
The situation remains dire, with numerous individuals still held hostage and presumed dead.
