In a bold move to reset slumping sales in the region, McDonald’s has announced plans to acquire its restaurants in Israel from long-time franchisee Alonyal Limited. The fast-food giant intends to take over the operation of 225 restaurants and retain over 5,000 employees as part of the deal.
The financial terms of the acquisition, set to close in the coming months, have not been disclosed. McDonald’s President of international developmental licensed markets, Jo Sempels, has emphasized the company’s commitment to the Israeli market despite recent challenges.
Alonyal Limited has successfully operated McDonald’s in Israel for over 30 years, making it one of the country’s most prominent chains. However, controversy erupted in October when Alonyal announced that McDonald’s was offering free meals to Israeli soldiers. This announcement led to boycotts in the Middle East and other Muslim-majority countries, impacting sales in regions such as France with large Muslim populations.
CEO Chris Kempczinski acknowledged that as long as conflicts persist in the region, significant improvements in sales are not expected due to the ongoing human tragedy. Nevertheless, McDonald’s remains optimistic about its future in Israel and is hopeful that the acquisition will help revitalize sales in the area.
The acquisition of McDonald’s restaurants in Israel marks a significant shift in the company’s strategy in the region and demonstrates its commitment to overcoming challenges and growing its presence in the market.
“Zombie enthusiast. Subtly charming travel practitioner. Webaholic. Internet expert.”