The fast-food giant McDonald’s has made a big decision regarding its business in Israel. They’ve announced plans to buy back their franchise in Israel, which has been operated by Alonyal Ltd for the past 30 years. This means McDonald’s will take control of 225 outlets and the jobs of over 5,000 people.
The decision comes after Alonyal Ltd faced criticism for offering free meals to the Israeli military following an attack by the Palestinian group Hamas. This led to boycotts and protests against McDonald’s in some places.
McDonald’s CEO, Chris Kempczinski, has acknowledged that the Israel-Hamas conflict has had a significant impact on their business in the Middle East and beyond. He mentioned seeing a drop in sales in countries like Malaysia and Indonesia due to the conflict.
Despite the change in ownership, McDonald’s has stated that they remain committed to the Israeli market and ensuring a positive experience for both employees and customers.
The transaction details between McDonald’s and Alonyal Ltd have not been disclosed publicly. However, it’s expected to be completed in the coming months, with McDonald’s taking over the operations while retaining the current workforce.
Other international companies, such as Starbucks and Domino’s, have also faced challenges related to their operations in the Middle East due to their perceived stances on geopolitical issues. This reflects a broader trend of how global businesses navigate complex political landscapes.
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