In response to allegations of offering free food to the Israeli military amid the conflict in Gaza, global fast-food giant McDonald's is experiencing significant backlash and financial losses. The company is taking drastic measures to mitigate the damage to its reputation and business.
McDonald's has been accused of providing complimentary meals to Israeli troops involved in the Gaza offensive, leading to widespread condemnation and calls for boycotts across the globe. Particularly in Kuwait, Malaysia, and Pakistan, supporters of Palestine are vehemently boycotting the fast-food chain.
The controversy has hit McDonald's hard, resulting in a substantial decline in revenue since the start of Israel's military campaign in Gaza. In a bid to salvage its business, McDonald's has taken the unprecedented step of acquiring all of its franchises in Israel.
For the past three decades, McDonald's restaurants in Israel have been managed by a company called Alonial. However, Alonial came under fire after allegations surfaced that it provided free meals to Israeli soldiers during the conflict. This sparked outrage and prompted a wave of boycotts against McDonald's.
In an effort to regain control and protect its brand image, McDonald's has finalized a deal to purchase 225 restaurants from Alonial. The decision to sever ties with Alonial comes as McDonald's grapples with the repercussions of the boycott and aims to prevent further financial losses.
The CEO of Alonial, Omri Padan, admitted to providing free food to the Israeli military following the outbreak of the conflict on October 7. This action ignited widespread condemnation and fueled the boycott against McDonald's in various countries, particularly in Muslim-majority nations.
McDonald's acknowledged the detrimental impact of the boycott on its business outside the United States, prompting the company to take swift action to address the situation. While the specifics of the deal remain undisclosed, McDonald's hopes that acquiring its Israeli franchises will help alleviate the ongoing crisis and restore its reputation among consumers worldwide.
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