McDonald’s has decided to acquire all 225 of its restaurant franchises in Israel following a period of dwindling sales due to boycott actions amid the Israel-Hamas conflict, CNBC reports.
The franchise, managed by Alonyal Ltd. for over three decades, faced criticism for offering free meals to Israeli soldiers, resulting in widespread protests and boycotts, particularly in Arab and Muslim-majority countries. Despite McDonald’s denial of supporting any government in the conflict, its sales plummeted with some franchises experiencing a 50% to 90% decline in revenue.
This move to purchase the Israeli outlets is aimed at regaining control over the brand and addressing losses linked to the actions of its franchisee. The ripple effects of such boycotts were also felt by Starbucks, which faced similar revenue declines in the Middle East, resulting in layoffs, following allegations of supporting the Israeli government.
