McDonald's to acquire 225 Israel outlets from franchisee amidst boycotts

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McDonald's Corporation is acquiring all of its 225 Israel outlets from franchisee Alonyal Limited.

Alonyal, which owns and operates McDonald's restaurants in Israel, started the brand journey in Israel more than 30 years ago and has since grown the business to 225 restaurants and more than 5,000 employees.

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Upon completion of the transaction, McDonald's will own Alonyal's restaurants and operations. Employees will be retained on equivalent terms.

“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 Limited.

"We’ve grown the brand to be the leading and most successful restaurant chain in Israel and are grateful to our management, employees, suppliers, and customers who made this possible. We are encouraged by what the future holds."

In a release, McDonald's thanked Alonyal for building the business and brand over the past 30 years.

“McDonald’s remains committed to the Israeli market and to ensuring a positive employee and customer experience in the market going forward,” said Jo Sempels, president of international developmental licensed markets at McDonald’s Corporation.

The terms of the deal were not disclosed.

The acquisition comes after McDonald's had been hit by boycotts in several markets following the war in Gaza. During which, McDonald's Israel had provided thousands of free meals to Israel Defence Forces personnel.

Earlier in January, McDonald's CEO Chris Kempczinski said the company was experiencing a "meaningful business impact" in the Middle East due to the war and "associated misinformation that is affecting brands like McDonald's."

Kempczinski added that the impact was "disheartening and ill-founded".

"In every country where we operate, including in Muslim countries, McDonald’s is proudly represented by local owner operators who work tirelessly to serve and support their communities while employing thousands of their fellow citizens. That local community connection is the genius of the McDonald’s System," said Kempczinski.

Closer to home, in Malaysia, McDonald’s has also been facing a fair bit of turmoil despite its consistent communication that it does not support nor condone the conflict. It added that like all Malaysians, its utmost sympathies go out to the innocent victims in Gaza.

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