McDonald’s to buy all 225 Israeli franchise restaurants amid boycotts

McDonald’s is set to buy all 225 Israeli franchise restaurants after boycotts!

The McDonald’s Corporation announced it will take over ownership of the 225 restaurants that make up its Israeli franchise after signing an agreement with Israeli company Alonyal Limited, which oversaw McDonald’s operations in the country in the decades since the brand was first introduced.

After completing the transaction in the coming months, the US fast-food chain will own Alonyal’s outlets and operations while retaining its more than 5,000 employees. 

“For more than 30 years, Alonyal Limited has been proud to bring the Golden Arches to Israel and serve our communities,” Omri Padan, CEO and owner of Alonyal, said in a statement on Thursday.

McDonald’s added that it “remains committed to the Israeli market and to ensuring a positive employee and customer experience in the market going forward”.

McDonald’s, a global company with franchises that are often owned locally and operate autonomously, has been subject to boycotts and protests internationally, since Alonyal announced shortly after the October 7 attack by Hamas that it would be donating free meals to the Israeli military.

Amid the boycott calls, the sales growth for the fast-food chain’s division for the Middle East, China and India during October-December was reportedly just 0.7 per cent – far below market expectations of 5.5 per cent.