McDonald's to buy back Israeli franchise from Alonyal following IDF support

McDonald's to buy back Israeli franchise from Alonyal following IDF support
McDonald's has resorted to buying its Israeli franchise after the failure of the brand. / CC: Monica Escalera
By bne IntelliNews April 4, 2024

McDonald's is acquiring its Israeli franchise from Alonyal Ltd, regaining control over 225 outlets in Israel, Israeli media reported on April 4.

The move to pull out by Alonyal follows recent controversies, including boycotts and protests against McDonald's from mainly Arab customers and those supporting the Palestinian cause in part sparked by Alonyal's earlier announcement to donate free 4,000 meals a day to the Israeli Defence Forces (IDF) after the Hamas attack on October 7.

Following that announcement by Omri, branches of McDonald's in Turkey, Lebanon and Egypt faced vandalism, and demonstrations of support for Gaza took place in front McDonald's restaurants across the world, from London to Kuala Lumpur.

McDonald’s CEO Chris Kempczinski confirmed in January that the conflict between Israel and Hamas had significantly affected McDonald's operations in several Middle Eastern countries and beyond.

Jo Sempels, president of International Developmental Licensed Markets at McDonald's, said: "McDonald's remains committed to the Israeli market [which collectively employs over 5,000 individuals] and to ensuring a positive employee and customer experience in the market going forward."

"For more than 30 years, Alonyal Limited has been proud to bring the Golden Arches to Israel and serve our communities," said Omri Padan, CEO and owner of Alonyal.

The financial details of the buyback deal remain undisclosed by both McDonald's and Alonyal.

Another significant international brand, Starbucks, has encountered boycotts due to its perceived support for Israel and rumoured financial connections with the country.