McDonald’s Takes Control of Israeli Restaurants Amid Sales Slump

McDonald’s is making a strategic move to acquire its restaurants in Israel from longtime franchisee Alonyal Limited, aiming to revitalize sales amid boycotts and controversy in the region.

Acquisition Details:

McDonald’s, headquartered in Chicago, announced on Friday its plan to purchase Alonyal Limited, the owner and operator of 225 McDonald’s restaurants in Israel. 

The financial terms of the acquisition were not disclosed, and the deal is expected to be finalized in the coming months.

Operational Changes:

With the acquisition, McDonald’s intends to take over the operations of the restaurants and retain over 5,000 employees currently working at these locations. 

The move signals McDonald’s commitment to the Israeli market and its dedication to enhancing the overall employee and customer experience.

Background of Alonyal Limited:

Alonyal Limited has been managing McDonald’s restaurants in Israel for over three decades and has been recognized as one of the country’s most successful chains. 

However, the company faced controversy last October after announcing free meals for Israeli soldiers, triggering boycotts and impacting sales in various regions.

Impact of Controversy on Sales:

The announcement by Alonyal Limited regarding free meals for Israeli soldiers led to boycotts in the Middle East and Muslim-majority countries such as Malaysia and Indonesia. 

Sales were also affected in countries with large Muslim populations, including France, highlighting the complexities of operating in geopolitically sensitive regions.

McDonald’s Response:

McDonald’s CEO Chris Kempczinski acknowledged the challenges posed by ongoing conflicts and wars in certain regions, emphasizing the human tragedy involved. 

While expressing concern, McDonald’s remains committed to navigating these challenges and delivering positive experiences for employees and customers in the Israeli market.