McDonald’s has been facing calls for a boycott following reports that its Israeli restaurants provided free meals to Israeli soldiers. As a result of declining sales due to the boycotts, the fast-food giant has made the decision to purchase all of its Israeli restaurants. The issue was highlighted by news outlets such as the British Broadcasting Company (BBC) and the news agency AFP.
In an effort to regain control and improve sales, McDonald’s announced that it will be acquiring Alonyal, the company that has been operating McDonald’s restaurants in Israel for over 30 years. This acquisition will result in McDonald’s directly owning 225 restaurants in Israel, where approximately 5,000 employees work. The purchase price was not disclosed, but the transaction is expected to be finalized in the coming months.
McDonald’s restaurants worldwide operate under franchise agreements, where independent entrepreneurs run the establishments. However, due to negative sentiments surrounding its actions in Israel, McDonald’s had experienced significant impact on its sales especially in regions like the Middle East, Malaysia, Indonesia and France.
By taking full control of its restaurants in Israel through this strategic move, McDonald’s hopes to restore its reputation and achieve its key sales targets once again while also addressing negative sentiments surrounding the company and improving business prospects in that region.
