Fast food giant McDonald’s has announced that it will buy all of its franchised restaurants in Israel. The move comes after the company suffered losses in recent years due to conflicts in the Middle East.
Gaining control over the brand
McDonald’s currently owns 225 franchised restaurants in Israel. According to a company statement, it decided to buy these restaurants to gain more control over its brand and improve customer service.
“This is an important step for McDonald’s in Israel,” said CEO Chris Kempczinski. “It will allow us to strengthen our position in the market and ensure that our customers always have the best possible experience.”
Mitigating the impact of conflicts
McDonald’s has suffered losses in recent years due to conflicts in the Middle East. In 2023, the company said that boycotts in Muslim countries led to a 5% decrease in sales.
By buying the Israeli franchises, McDonald’s is trying to reduce the risk of losses in the future. The company will be able to control prices and marketing campaigns in Israel and respond more quickly to changes in the market.
Alonyal to continue playing an important role
McDonald’s current franchise partner in Israel, Alonyal, will continue to play an important role in the operation of the restaurants. Alonyal will be responsible for the day-to-day operations of the restaurants, and McDonald’s will oversee the overall strategy and marketing.
Terms of the deal undisclosed
The terms of the deal between McDonald’s and Alonyal were not disclosed. However, the deal is expected to be completed within a few months.
Source: CNN, Photo: Crusier, CC BY-SA 3.0, via Wikimedia Commons
