McDonald’s: Middle East boycott over free meals for Israeli soldiers hits sales
Laura McGuire
Fri, 5 January 2024
McDonald’s chief executive, Chris Kempczinski, has blamed “misinformation” surrounding the Israel-Gaza war for flattening sales in the Middle-East.
McDonald’s chief executive, Chris Kempczinski, has blamed “misinformation” surrounding the Israel-Gaza war for flattening sales in the Middle-East.
In a post on LinkedIn, the head of the fast food chain said calls for boycott have led to “meaningful business impact”.
Kempczinski, said: “Several markets in the Middle East and some outside the region are experiencing a meaningful business impact due to the war and associated misinformation that is affecting brands like McDonald’s.
“This is disheartening and ill-founded In every country where we operate, including in Muslim countries, McDonald’s is proudly represented by local owner operators who work tirelessly to serve and support their communities while employing thousands of their fellow citizens.”
The popular chain has been scrutinised by pro-Palestinian groups after it emerged that McDonald’s gave free meals to Israeli soldiers following the October 7th attack on the country by Hamas.
Franchises in Saudi Arabia and Oman also issued statements distancing themselves from their Israeli counterpart and pledged millions in aid of Gaza.
McDonald’s is one of a host of high street brands which has been targeted by protestors.
Starbucks was also forced to call for peace after its stores were vandalised.
Boss Laxman Narasimhan, said: “We see protestors influenced by misrepresentation on social media of what we stand for.”
“We have worked with local authorities to ensure our partners and customers are safe. Nothing is more important. Our stance is clear. We stand for humanity.”
Some $11bn (£10bn) has been wiped off the coffee outfit’s market value amid calls for a boycott.
Jabed Ahmed
Fri, 5 January 2024
McDonald’s CEO said ‘our hearts remain with the communities and families impacted by the war in the Middle East’ (REUTERS)
The CEO of McDonald’s, Chris Kempczinski, has said the fast food chain was seeing a “meaningful” hit to business, as customers boycott the firm in the Middle East for its perceived support of Israel.
Mr Kempczinski said calls from pro-Palestinan groups to boycott McDonald’s are based on “misinformation”.
The fast food giant has been targeted by campaigners after posts on social media showed franchised stores in Israel giving free meals to Israeli military forces following the 7 October Hamas attack.
This move sparked grassroots calls for boycotts of the brand by those angered by Israel’s military response in Gaza, prompting owners in Muslim-majority countries such as Kuwait, Malaysia and Pakistan to release statements distancing themselves.
McDonald’s operates a franchising business model, which means it relies on thousands of independent businesses to own and operate most of its more than 40,000 stores globally, with about 5 per cent located in the Middle East.
The company has said it has no position on the conflict and is not responsible for the action of its franchisees, who pay the company a fee to use its brand and recipes.
Mr Kempczinski said in a LinkedIn blog post on Thursday: “Several markets in the Middle East and some outside the region are experiencing a meaningful business impact due to the war and associated misinformation that is affecting brands like McDonald’s.
“This is disheartening and ill-founded. In every country where we operate, including in Muslim countries, McDonald’s is proudly represented by local owner operators who work tirelessly to serve and support their communities while employing thousands of their fellow citizens.”
“Our hearts remain with the communities and families impacted by the war in the Middle East. We abhor violence of any kind and firmly stand against hate speech, and we will always proudly open our doors to everyone,” he added.
The post from the McDonald’s boss comes as tensions over the boycotts have escalated in recent days. The pro-Palestinian Boycott, Divestment and Sanctions (BDS), which had not formally targeted McDonald’s, this week officially called for a boycott of the brand.
Earlier this week, McDonald’s Malaysia sued the Malaysia BDS group for $1.3m (£1m), claiming “false and defamatory statements” had hurt its business, according to Reuters.
In response, BDS Malaysia said it "categorically denies" defaming the fast-food company.
“We cannot let this pass. Let’s show McDonald’s what grassroots boycotts can do,” the group said in a statement.
Mr Kempczinski is the second boss of a major global business to address the toll sparked by Israel-Gaza war tension. Last month, the Starbucks CEO, Laxman Narasimhan, said the company was the victim of “misrepresentation on social media of what we stand for”.
McDonald’s chief says Israel-Gaza ‘misinformation’ is hurting sales
Ayan Omar
Fri, 5 January 2024
(PA Wire)
McDonald’s chief executive warned “misinformation” about the Israel-Gaza war is having “meaningful impact” on sales in the Middle East.
Chris Kempczinski said calls for boycott has affected the fast-food chain both in the Middle Eastern markets and “some outside of the region.”
Mr Kempczinski said: “Several markets in the Middle East and some outside the region are experiencing a meaningful business impact due to the war and associated misinformation that is affecting brands like McDonald's.”
"This is disheartening and ill-founded."
"In every country where we operate, including in Muslim countries, McDonald's is proudly represented by local owner operators,” he wrote in a blog post on LinkedIn.
The chain has been targeted by Pro-Palestine activists after McDonalds Israel said it had given thousands of free meals to the Israeli military following the October 7 Hamas attack.
The decision sparked outrage among those angered by Israel's military response in Gaza, with many calling for a boycott and protesting.
In October, protestors released mice painted in the colours of the Palestinian flag in a Birmingham branch of McDonald's.
McDonald’s franchises in Saudi Arabia, Oman, Kuwait, the United Arab Emirates, Jordan, Egypt, Bahrain and Turkey have distanced themselves from the move at the time and pledged aid to Gaza.
The Pro-Palestine organisation, Boycott, Divestment and Sanctions (BDS) included McDonalds in their targeted boycott list in November, which included organisations they believe “openly supported” the Israeli military.
This week they have officially called for a boycott of the chain after McDonalds in Malaysia, backed by a Saudi firm, sued the Malaysia BDS group for $1.3 million (£1 million) over “false and defamatory statements” they claim damaged their business.
In a statement the BDS group said McDonalds should end its “shameful franchise agreement” with Israel and accused McDonald's Malaysia and its Saudi owner of “desperately trying to silence voices of peaceful solidarity with the Palestinian liberation struggle in Malaysia.”
"We cannot let this pass. Let's show McDonald's what grassroots boycotts can do,” they added.
McDonald’s is among several other companies, including Starbucks and retail chain Zara to be hit with boycotts following the Israel-Hamas war.
Last month, Starbucks boss Laxman Narasimhan blamed “misinformation” of the company’s views for its low sales.
Ayan Omar
Fri, 5 January 2024
(PA Wire)
McDonald’s chief executive warned “misinformation” about the Israel-Gaza war is having “meaningful impact” on sales in the Middle East.
Chris Kempczinski said calls for boycott has affected the fast-food chain both in the Middle Eastern markets and “some outside of the region.”
Mr Kempczinski said: “Several markets in the Middle East and some outside the region are experiencing a meaningful business impact due to the war and associated misinformation that is affecting brands like McDonald's.”
"This is disheartening and ill-founded."
"In every country where we operate, including in Muslim countries, McDonald's is proudly represented by local owner operators,” he wrote in a blog post on LinkedIn.
The chain has been targeted by Pro-Palestine activists after McDonalds Israel said it had given thousands of free meals to the Israeli military following the October 7 Hamas attack.
The decision sparked outrage among those angered by Israel's military response in Gaza, with many calling for a boycott and protesting.
In October, protestors released mice painted in the colours of the Palestinian flag in a Birmingham branch of McDonald's.
McDonald’s franchises in Saudi Arabia, Oman, Kuwait, the United Arab Emirates, Jordan, Egypt, Bahrain and Turkey have distanced themselves from the move at the time and pledged aid to Gaza.
The Pro-Palestine organisation, Boycott, Divestment and Sanctions (BDS) included McDonalds in their targeted boycott list in November, which included organisations they believe “openly supported” the Israeli military.
This week they have officially called for a boycott of the chain after McDonalds in Malaysia, backed by a Saudi firm, sued the Malaysia BDS group for $1.3 million (£1 million) over “false and defamatory statements” they claim damaged their business.
In a statement the BDS group said McDonalds should end its “shameful franchise agreement” with Israel and accused McDonald's Malaysia and its Saudi owner of “desperately trying to silence voices of peaceful solidarity with the Palestinian liberation struggle in Malaysia.”
"We cannot let this pass. Let's show McDonald's what grassroots boycotts can do,” they added.
McDonald’s is among several other companies, including Starbucks and retail chain Zara to be hit with boycotts following the Israel-Hamas war.
Last month, Starbucks boss Laxman Narasimhan blamed “misinformation” of the company’s views for its low sales.
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