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McDonald's is buying back all of its restaurants from its local franchisee in Israel. The American fast-food chain will reacquire 225 stores from Alonyal Ltd. amid pressure from boycott calls and global backlash against the brand in response to the controversies related to the Israel-Hamas war.
According to BBC News, McDonald's was heavily criticized when Alonyal-operated stores started serving free meals to Israeli soldiers. Since the war broke out in the territory last year, it was reported that sales from the franchised outlets have dropped.
Buy Back Deal Between McDonald's and Alonyal
On Thursday, April 4, McDonald's revealed it has signed a deal with Alonyal to return its 225 restaurants across Israel. The stores employ 5,000 staff, and the latter has been operating the chain for more than 30 years now.
McDonald's said that after taking back the stores from Alonyal, it would retain the employees and continue serving customers in the country. It remained committed to the Israeli market despite the recent controversies and condemnation it received.
Protests Against McDonald's Amid the War
It can be recalled that the decision to give away free McDonald's meals to Israeli soldiers sparked boycott calls not only from Muslim-majority countries but worldwide. The protests against the brand led many countries to distance themselves from the chain, and people stopped buying from the stores. As a result, sales plummeted.
The Times of Israel reported that the decline was reflected in McDonald's earnings report in February. The company admitted that the Hamas-Israel war in Gaza that started in October 2023 has been weighing on the financial results.
"In every country where we operate, including in Muslim countries, McDonald's is proudly represented by local owner-operators," McDonald's chief executive officer Chris Kempczinski said at that time. "So long as this war is going on, we are not expecting to see any significant improvement in these markets."
Finally, McDonald's hopes that taking back its stores in Israel can restore its reputation in the Middle East and the world and that sales will return to normal levels once again.
Photo by: Dixit Dhinakaran/Unsplash
