McDonald’s has announced plans to acquire its Israeli franchises from Alonyal Limited, a move aimed at revitalizing its presence in the region amid sales downturns linked to regional boycotts. The transaction, which will see the fast-food giant taking over 225 outlets in Israel, is slated for completion in the coming months, although the financial specifics remain undisclosed.
By assuming direct operation of these establishments, McDonald’s intends to uphold the employment of over 5,000 staff members. This acquisition underscores McDonald’s dedication to the Israeli market and its commitment to delivering exceptional service and customer satisfaction.
Alonyal Limited has been the face of McDonald’s in Israel for over three decades, cultivating a strong brand presence. However, the company faced backlash and subsequent boycotts in various parts of the Middle East and beyond after a social media announcement revealed its initiative to offer complimentary meals to Israeli soldiers. This led to notable sales declines, especially in regions with significant Muslim populations, including France.
McDonald’s CEO Chris Kempczinski acknowledged the challenges posed by the geopolitical situation, emphasizing the broader human implications and their impact on international brands like McDonald’s. The company is now focused on navigating these challenges while reinforcing its market position in Israel.
