McDonald’s has faced boycotts following franchisee Alonyal’s decision to offer free meals to the Israeli military. The fast-food chain has announced plans to buy back its 30-year-old Israel franchise from Alonyal, taking control of 225 outlets and over 5,000 employees.
CEO Chris Kempczinski acknowledged the negative impact the Israel-Hamas conflict has had on McDonald’s sales in the Middle East and other Muslim-majority countries, such as Malaysia and Indonesia. The company has seen minimal growth in the region, attributing it to the ongoing conflict.
Following Alonyal’s controversial announcement, McDonald’s has reaffirmed its commitment to the Israeli market and ensuring a positive experience for employees and customers. The transaction between McDonald’s and Alonyal is expected to be completed in the coming months, with McDonald’s taking over operations while retaining current employees.
The boycotts and protests in response to Alonyal’s actions have also affected other Western fast-food chains, such as Starbucks and Domino’s. Starbucks CEO Laxman Narasimhan noted a significant impact on sales in the Middle East and the US, where protesters called for the company to distance itself from Israel. Domino’s, on the other hand, faced backlash in Asia due to false claims of supporting Israeli forces, resulting in a drop in same-store sales in the region.
The conflict between Israel and Hamas has not only affected McDonald’s but also other multinational corporations, highlighting the challenges faced by businesses operating in politically sensitive regions.