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McDonald's branch in Ein Bokek on the Dead Sea

Photo: Yuriy Komarov / Getty Images

The Gaza war is affecting McDonald's sales. The fast food chain's boss, Chris Kempczinski, acknowledged "significant business impacts" in the region on LinkedIn in January.

Now the situation is apparently no longer sustainable for the franchisee Alonyal Limited. The company led by Omri Padan is selling the 225 restaurants in Israel back to McDonald's, the company announced.

“For more than 30 years, Alonyal Limited has been proud to bring the Golden Arch to Israel and serve our communities,” Padan said, according to the statement. »We have developed the brand into the leading and most successful restaurant chain in Israel and are grateful to our management, employees, suppliers and customers who have made this possible.«

Jobs should be preserved

Alonyal locations in Israel faced loud calls for a boycott in the wake of the October 2023 Hamas terrorist attacks and the subsequent war in Gaza. The franchise had donated meals to the Israeli military and offered discounts to local soldiers and security forces, according to CNN.

In doing so, McDonald's alienated parts of the country's population. According to the report, franchisees in the predominantly Muslim countries of Kuwait and Pakistan also distanced themselves from the company in Israel. Kempczinski tried to smooth things over in January. At the time, he expressed his disappointment at the situation, saying: "In every country we operate in, including Muslim countries, McDonald's is proudly represented by local operators who work tirelessly to serve and support their communities and at the same time employ thousands of their fellow citizens.

Regarding the current repurchase of the Israeli branches, McDonald's says that it continues to feel "committed" to the Israeli market and wants to continue to ensure positive experiences there. It was initially unclear what exactly was meant by this and whether there was a new franchisee. More than 5,000 employees work in the Alonyal branches and the jobs are to be retained.

Apr