- McDonald’s HQ takes over Israel branches after Gaza conflict boycotts
- Sales decline after controversy over donated meals to Israeli troops
- Boycotts linked to broader BDS movement against Israeli actions
The intervention of the American company follows a period of controversy surrounding its international sales during the conflict. After donating thousands of complimentary meals to Israeli troops, activists have urged consumers to avoid the chain.
McDonald’s headquarters will assume ownership of its Israeli locations following consumer boycotts in response to the conflict in Gaza, which negatively impacted global sales.
The United States-based fast food chain announced that it would acquire Alonyal Ltd.’s 225-location Israel franchise, which has been operating for 30 years.
It follows last year’s announcement by McDonald’s Israel that it would donate thousands of free meals to the country’s forces fighting in Gaza, which sparked outrage.
As a result of the giveaway, international customers were urged to boycott the fast food chain, and critics accused it of aiding in the massacre of Palestinian civilians en masse.
Israel denies allegations of genocide and additional war crimes. It launched military operations against Hamas in Gaza on October 7 of last year, following raids in which the militant organization reportedly murdered approximately 1,200 individuals and held hundreds captive.
The health ministry in Gaza, which is under the control of Hamas, reported this week that the death toll from Israel’s response has surpassed 33,000.
McDonald’s chief executive officer Chris Kempczinski acknowledged earlier this year that the boycotts had had a “significant business impact,” February figures revealed that the company’s sales, particularly in Asia, had been impacted.
In the wake of the decision, McDonald’s stated that it “remains committed to the Israeli market” and resolved to “maintain a positive employee and customer experience in the market moving forward.”
Earlier this year, sources at the company’s US headquarters attempted to distance themselves from the controversy by stating they were unwilling to take a side in the dispute.
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Mr. Kempczinski further stated that McDonald’s “abhors violence of any kind” and attributed the decline in sales to “associated misinformation” and the conflict.
Uncertain is the reason for management’s current decision to intervene in Israel and whether, as a consequence, it will cease providing complimentary meals to Israeli soldiers.
Omri Padan, chief executive officer of Alonyal, stated that McDonald’s intended to finalize the transaction within the next few months and would retain its 5,000 employees in the region.
The companies have refrained from providing any additional information regarding the acquisition.
Additionally, in recent months, Starbucks and other multinational corporations have been affected by war-related boycotts.
It is a component of the broader Boycott, Divestment, Sanctions (BDS) initiative, which seeks to exert pressure on Israel to cease its assault on Gaza and “comply with international law” through the use of economic leverage.
Activists claim that the boycott movement that helped end apartheid in South Africa has inspired them. Israel denies such comparisons categorically.
Sunak said the UK is breaking international law by arming Israel