Burger giant McDonald’s intends to regain ownership of all its restaurant branches in Israel after a decline in sales due to the campaign calling for a boycott of the chain since the outbreak of the bloody Israeli war on the Gaza Strip.
Published on: 04/06/2024 – 13:58
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McDonald’s announced that it has reached an agreement with the franchise company in Israel, Alonial, to restore 225 stores across the country, which employ approximately 5,000 people. This is in light of the brand’s exposure to widespread criticism when the Israeli company “Alonial” decided to distribute thousands of free meals to Israeli soldiers participating in the war on Gaza.
The company said on Thursday, April 4, that an agreement had been signed with Alonial, and among its terms, the American giant would retain all the restaurants, operations, and employees working in all of its restaurants, “on equal terms,” and that it would remain “committed to the Israeli market,” without revealing any details. terms of sale.
McDonald’s sales in the region have declined since the war began last October, as about 5% of the chain’s stores in the world are located in the Middle East. The boycott campaign against McDonald’s spread after Arab and Muslim-majority countries, such as Malaysia and Pakistan, issued statements against the company because of its clear support for Israel, and protests were organized around the world.
Read also: The curse of the boycott haunts McDonald’s… and a loss of billions
In January, the global food chain admitted that the war on Gaza had affected its performance in the Middle East, where for the first time in four years the company did not meet its quarterly sales target. McDonald’s CEO Chris Kempczinski blamed the boycott on “misinformation” and described it as “baseless.”
With this step, the chain hopes to restore its reputation in the Middle East and achieve its main sales goals, by regaining control of the business in Israel and bringing it back “inside the company.” However, this ambition remains dependent on developments in the war on Gaza, as the company’s CEO said publicly, “As long as this war continues… we do not expect to see any significant improvement in these markets.”
2024-04-06 11:58:40
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