In 1992, Omri Padan acquired the franchise rights to open McDonald’s restaurants in Israel. The first restaurant opened in 1993, and by 2021, there were over 225 restaurants and about 5,000 employees. However, recent conflicts in the region have led to reputational challenges for McDonald’s in countries that oppose Israel, leading to calls for boycotts of the fast food chain.
To mitigate financial risks and align with their global values, McDonald’s has decided to take over the operations in Israel. This move was prompted by a decline in sales due to the conflict impact on the Gaza Strip and Omri Padan’s donations of food to Israeli soldiers during times of crisis, further complicating the brand’s image in certain markets.
McDonald’s aims to preserve the working conditions of its workers even after the ownership transition. With this acquisition, they hope to improve their overall reputation and standing in the international market. The company is now searching for a new franchisor to continue operating its Israeli branches.
