McDonald’s to buy all 225 of Israeli franchise restaurants amid backlash

The company faced boycotts after franchisee Alonyal pledged free meals to the Israeli military during the Gaza war.

McDonald’s will buy its 30-year-old Israel franchise from Alonyal, taking back 225 outlets and 5,000 jobs.

Boycotts and protests against the US fast-food chain surged after Alonyal declared that it would donate free meals to the Israeli military, following the October 7 attack by Hamas.

McDonald’s typically has locally owned franchises that run independently. Previously, CEO Chris Kempczinski noted that the Israel-Hamas conflict had caused significant business effects in multiple Middle Eastern markets and some beyond.

“For more than 30 years, Alonyal Limited has been proud to bring the Golden Arches to Israel and serve our communities,” Omri Padan, CEO and owner of Alonyal, said in a statement on April 4, 2024.

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

Following the transaction's completion in the upcoming months, McDonald’s will acquire Alonyal’s outlets and operations, preserving its employees. The terms of the deal were not revealed by the companies.