McDonald’s buys back Israeli restaurants after Gaza boycott damages sales

McDonald’s will buy back all of its Israeli restaurants following a boycott of the brand after it handed thousands of free meals to soldiers in the country. 

The American fast-food giant said it reached an agreement with franchisee Alonyal for the return of 225 outlets. 

McDonald’s chief Chris Kempczinski said earlier this year that calls for boycott led to “meaningful business impact”.

As part of the agreement, McDonald’s Corporation will own Alonyal Limited’s restaurants and operations, and its 5,000 employees will be retained on equivalent terms.

McDonald’s said it “remains committed” to the Israeli market and to ensuring a positive employee and customer experience in the market going forward.

Omri Padan, the chief and owner of Alonyal Limited, said he was “grateful” to management, employees, suppliers and customers who made this possible. 

“We are encouraged by what the future holds,” he added. 

The business has been scrutinised by pro-Palestinian groups after it emerged that it gave free meals to Israeli soldiers following the October 7th terror attack on the country by Hamas. 

Franchises in Saudi Arabia and Oman also issued statements distancing themselves from their Israeli counterpart and pledged millions in aid of Gaza. 

In the UK, protesters have targeted McDonald’s branches, with two arrested after releasing mice at a store in Birmingham, painted in the colours of the Palestinian flag.

The company will hope that by taking the business back in-house, it will help repair its reputation in the Middle East. 

Israel launched militant action in Gaza against Hamas after the group killed 1,200 civilians and took hundreds of hostages in raids on October 7th. 

Since then, much of the Gaza Strip has been devastated and over 30,000 lives have been claimed, according to the Hamas-run health ministry.