McDonald’s Sales Plummet Due to Polarizing Situation in Middle East.

In neighboring countries to Israel, McDonald’s franchisees are donating to the Palestinians while Israeli franchisees support the military. This division in the fast food chain is affecting its sales. When McDonald’s first opened a branch in Israel in 1993, it faced challenges such as government resistance to importing frozen French fries. They had to produce fries locally due to opposition from local potato farmers. This conflict was referred to as the “French fry war: Israel versus McDonald’s” by The New York Times.

Over thirty years later, McDonald’s claims to be the leading restaurant chain in Israel, but during the Middle East conflict, criticism towards McDonald’s grew. This led to the company buying back all branches in Israel from its local franchisee Alonyal Limited, who sparked controversy by offering free meals to Israeli forces after a terrorist attack. The action led other franchisees in neighboring countries to distance themselves and donate to the Palestinian people. Tensions surrounding this issue had a significant business impact on McDonald’s market in the Middle East, with sales declining for the first time in four years.

In response, McDonald’s CEO expressed disappointment and tried to calm tensions. Sales in other countries were also affected, leading to a decline in overall sales for McDonald’s worldwide. Alonyal Limited decided to sell all 225 branches back to McDonald’s with the hope of restoring its reputation in the Middle East. Despite these challenges, McDonald’s remains committed