McDonald’s Corporation has reached an agreement with Alonyal, the franchise owner in Israel, to repurchase all of its restaurants in the country.
Since Alonyal announced last year that it would provide free meals to Israeli soldiers, the fast-food chain has come under fire. This has sparked protests and calls for a boycott due to the perceived backing of Israel during the Israel-Gaza conflict.
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Although McDonald’s is a global corporation, its franchises are frequently locally owned and operate independently. Following the criticism, McDonald’s franchises in various countries, such as Pakistan and Malaysia, issued public statements emphasizing their autonomy and distancing themselves from the Israeli operations.
McDonald’s president and CEO, Chris Kempczinski, recognized that the war has had a “significant business impact” on several markets in the Middle East and beyond. He also expressed that he finds the “misinformation affecting the brand” to be “disheartening and unfounded.”
After finalizing the transaction, the details of which were not disclosed, McDonald’s will assume ownership of Alonyal’s 225 restaurants in Israel, while also maintaining a workforce of over 5,000 employees.
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Jo Sempels, the president of international development for licensed markets at McDonald’s Corporation, commented, “We appreciate Alonyal Limited’s efforts in establishing and growing the McDonald’s brand in Israel over the last 30 years. McDonald’s continues to be dedicated to the Israeli market and is committed to maintaining a positive experience for both employees and customers moving forward.”
Alonyal’s CEO and owner, Omri Padan, said, “Alonyal Limited has taken pride in serving our communities and bringing the Golden Arches to Israel for over three decades.” Thanks to the efforts of our management, staff, suppliers, and patrons, we have grown the brand to become the most well-known and successful restaurant chain in Israel. Regarding what is ahead, we have optimism.
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