McDonald's Acquires Israeli Franchise Amid Boycotts

The fast-food giant aims to mitigate sales impacts and maintain commitment to the Israeli market following controversy over franchisee's support for Israeli military.

McDonald's announces acquisition of its Israeli franchise, Alonyal Limited, which owns 225 restaurants, in response to boycotts stemming from the franchisee's support for Israeli military amid the Israel-Hamas conflict.
The move aims to mitigate sales losses experienced in several markets due to boycotts, particularly in Muslim-majority countries, after Alonyal's decision to provide free meals to Israeli soldiers was publicized.
McDonald's commits to retaining over 5,000 employees of the Israeli franchise and emphasizes its dedication to the Israeli market and positive customer experience going forward.
The controversy highlights challenges in the global franchise model, where local operations' decisions can impact brand perception and sales internationally.
Other Western brands, including Starbucks, have also faced boycotts related to the conflict, underscoring the broader implications of corporate actions during geopolitical tensions.