Israel – McDonald’s announced that it will buy back all of its restaurants in Israel after a decline in sales in the region following the boycott due to its support for Israel in the ongoing conflict in Gaza.
The popular restaurant chain uses the franchise system, which licenses individual operators to operate outlets and employ employees.
Alonial has managed all McDonald’s restaurants in Israel for more than 30 years.
In a statement issued Thursday, McDonald’s said it remains “committed to the Israeli market and ensuring a positive experience for employees and customers in the market in the future.”
It revealed that it would buy all 225 outlets from Alonial, while retaining all of its 5,000 employees, as well as its restaurants and operations in Israel, “on equal terms.” No other terms of the sale were revealed.
McDonald’s faced widespread criticism after its Israeli restaurants were filmed providing thousands of free meals to members of the Israeli army.
This protest led to a spontaneous boycott from consumers across the Middle East and other Muslim-majority countries, such as Pakistan, Malaysia and Saudi Arabia.
As a result, the company’s revenues declined in the fourth quarter of 2023, with McDonald’s CEO Chris Kempczinski saying the company is seeing a “meaningful business impact.”
Other Western brands, such as KFC and Starbucks, have also faced backlash over their stance on the Israeli-Palestinian conflict, and announced financial losses in the fourth quarter of 2023.
The boycott against major Western brands comes as a result of the conflict in Gaza since last October.
Source: RT
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2024-04-10 22:38:00