McDonald’s Reacquires Israel Franchise Amid Controversy

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McDonald's confirmed the acquisition of its 30-year-old Israel franchise from Alonyal Ltd, regaining ownership of 225 outlets
McDonald's confirmed the acquisition of its 30-year-old Israel franchise from Alonyal Ltd, regaining ownership of 225 outlets

McDonald’s announced the acquisition of its 30-year-old Israel franchise from Alonyal Ltd, reclaiming ownership of 225 restaurants and retaining over 5,000 employees.

Following Alonyal’s decision to provide free meals to the Israeli military shortly after the Oct. 7 attack by the Palestinian group Hamas, McDonald’s faced boycotts and protests.

Global Franchise Dynamics:

Despite being a global chain, McDonald’s franchises are typically locally owned and operated.

McDonald’s CEO Chris Kempczinski noted the “meaningful impact” on several Middle Eastern markets and beyond due to the Israel-Hamas conflict during January.

Commitment to the Israeli Market:

Jo Sempels, President of International Developmental Licensed Markets, affirmed McDonald’s commitment to the Israeli market and ensuring a favorable experience for employees and customers.

According to Omri Padan, CEO and owner of Alonyal, the transaction will be completed in the coming months, and McDonald’s will assume ownership of Alonyal’s restaurants and operations while retaining its workforce.

Financial Terms Concealed:

The companies refrained from disclosing the financial terms of the transaction.

Similar to McDonald’s, Starbucks has also faced boycott campaigns over perceived pro-Israeli stances and alleged financial connections to Israel.

James Adam

James Adam, a noted business writer for CEO Times Magazine, specializes in insightful industry analysis and executive profiles. Known for his clear, concise style, James offers readers an expert perspective on global business trends and market dynamics.

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