McDonald’s has announced its intention to acquire its Israeli franchise from Alonyal Limited, a move prompted by challenges faced by the fast-food chain during the ongoing conflict between Israel and Hamas in Gaza. This strategic decision was revealed in a statement released by McDonald’s on Thursday, confirming the agreement to purchase all 225 McDonald’s restaurants in Israel from Alonyal.
Omri Padan, CEO and owner of Alonyal Ltd, expressed pride in the longstanding partnership, stating, “For more than 30 years, Alonyal Limited has been proud to bring the Golden Arches to Israel and serve our communities.” He also conveyed optimism for the future following the acquisition.
The decision to acquire the Israeli franchise follows McDonald’s acknowledgment in February that its international developmental licensed markets experienced lower-than-expected growth, attributed in part to the impact of the conflict in the Middle East. McDonald’s operations in Israel faced criticism after announcing donations of meals to the Israel Defense Forces during the conflict, leading to calls for a boycott of the fast-food chain.
Upon completion of the transaction, McDonald’s will assume ownership and operation of the Israeli restaurants, ensuring continuity for approximately 5,000 employees who will be retained “on equivalent terms.” Jo Sempels, president of International Developmental Licensed Markets at McDonald’s Corporation, emphasized the company’s commitment to the Israeli market and ensuring a positive experience for both employees and customers moving forward.
The acquisition is expected to be finalized in the coming months, marking a significant development in McDonald’s presence in Israel amidst the backdrop of the ongoing conflict. The conflict, which began in early October, has taken a devastating toll on Palestinians in Gaza, with widespread destruction of homes, displacement of residents, and loss of lives.