McDonald’s to buy back all of its Israeli restaurants after boycotts

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 decision comes after widespread protests at its decision to give out free meals affected sales in the Middle East, Indonesia and France . 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.

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.

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 of the 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.

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.

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