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McDonald’s Acquires All Restaurants in Israel from Franchisee Alonyal Limited
McDonald’s, a global fast-food giant with more than 40,000 locations worldwide, recently announced the acquisition of all 225 of its restaurants in Israel from franchisee Alonyal Limited. This move marks a significant shift in ownership and operation in the Israeli market, as McDonald’s takes over full control of its outlets in the country.
Details of the Acquisition
Alonyal Limited, which has owned and operated McDonald’s restaurants in Israel for over three decades, has agreed to sell its entire portfolio to the fast-food corporation. As part of the transaction, McDonald’s will retain more than 5,000 employees currently working at these locations on equivalent terms. The deal is slated for finalization in the coming months, pending regulatory approvals and procedural requirements.
Commenting on the acquisition, Jo Sempels, President of International Developmental Licensed Markets at McDonald’s, emphasized the company’s commitment to the Israeli market. Sempels reiterated McDonald’s dedication to providing a positive experience for both employees and customers in Israel moving forward.
While specific financial details of the deal were not disclosed, McDonald’s expressed optimism about the future outlook for its operations in Israel. The acquisition represents a strategic decision to consolidate ownership and streamline management of the restaurants across the country.
Challenges and Opportunities
Notably, McDonald’s faced backlash and boycotts in Israel following a social media post by McDonald’s Israel, where the company announced its donation of “tens of thousands of meals” to the Israel Defense Forces and citizens during attacks by Hamas in October. The conflict between Israel and Hamas in 2023 had a negative impact on McDonald’s international sales, with the company attributing a decline in revenue to the ongoing crisis.
Despite these challenges, McDonald’s remains confident in the growth potential of its brand in Israel and worldwide. With a vast network of franchisees operating independently in various markets, McDonald’s continues to be a leading player in the global restaurant industry. Franchisees play a crucial role in setting prices, implementing promotions, and managing day-to-day operations, contributing to the overall success and expansion of the McDonald’s brand.
Omri Padan, CEO and owner of Alonyal Limited, expressed gratitude towards the management, employees, suppliers, and customers who have supported the growth of McDonald’s in Israel. Looking ahead, Padan remains optimistic about the future prospects of the fast-food chain in the region, highlighting the positive developments to come under McDonald’s full ownership.
Overall, the acquisition of McDonald’s restaurants in Israel signifies a significant strategic move by the company to strengthen its presence and enhance operational efficiency in the Israeli market. With a renewed focus on delivering quality service and innovative offerings, McDonald’s aims to continue its legacy of success and growth in the region.
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