McDonald’s has announced that it will be purchasing the franchise rights from entrepreneur Omri Padan for its Israeli branches. This move comes in response to pressure from pro-Palestinian organizations, according to economic publication Calcalist. By doing so, McDonald’s aims to regain control of its Israeli branches and stop donations to the IDF previously made by restaurants controlled by Omri Padan.
The fast food chain first entered Israel 30 years ago and currently operates 225 restaurants in the country, with approximately 5,000 employees. McDonald’s has assured that the working conditions of its employees will remain unchanged after the completion of the transaction.
The conflict between Israel and Palestine has led to a number of challenges for McDonald’s, including reputational risks and financial damage. In order to resolve these issues and minimize further harm, the company has decided to buy out McDonald’s Israel.
Omri Padan, CEO of Aloniel, acquired the rights to open McDonald’s restaurants in Israel in 1992, with the first restaurant opening in 1993. With this purchase marking a significant change in ownership and management for McDonald’s in Israel, it is clear that the company is committed to maintaining its presence and success in the country.
