McDonald’s has announced that it will be seeking a new franchisor for its Israeli branches after acquiring the franchise rights from entrepreneur Omri Padan. This move was made in response to pressure from pro-Palestinian organizations, according to economic publication Calcalist. By purchasing the franchise rights, McDonald’s will be able to stop donations to the IDF that were previously made by restaurants controlled by Omri Padan.
The fast food chain first came to Israel about 30 years ago and currently operates 225 restaurants in the country, employing around 5,000 people. McDonald’s has stated that the working conditions of its employees will be preserved after the completion of the transaction.
After a period of conflict, including Black Saturday and the outbreak of the Iron Swords War, Omri Padan began donating meals to Israeli soldiers like many other restaurateurs in Israel. The international McDonald’s chain faced reputational challenges in countries opposed to Israel due to these donations. To address this issue and minimize financial damage, McDonald’s decided to acquire McDonald’s Israel.
Omri Padan, the owner and CEO of Aloniel, acquired the rights to open McDonald’s restaurants in Israel in 1992, with the first restaurant opening in 1993. The purchase of the franchise rights by McDonald’s signifies a significant change in ownership and management for the fast food chain in Israel.
