(Photo Credit: GETTY IMAGES) The Cradle The CEO of McDonald’s, Chris Kempczinski, said on 4 January that several markets in West Asia and some outside of the region were facing a “meaningful business impact” due to the war between the Palestinian resistance and Israel.
McDonald’s latest business titan to face impact of pro-Israel stance
The Cradle
Kempczinski also said that “associated misinformation” about the company has been a reason for the financial issues the brand is facing, and that the misinformation surrounding McDonald’s was “disheartening and ill-founded.”
Western Israeli-linked fast food chains, including McDonald’s and Starbucks, have seen large grassroots boycott campaigns emerge over pro-Israel stances and alleged financial ties with Israel.
“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,” Kempczinski said in a social media post. “That local community connection is the genius of the McDonald’s system.”
West Asian locations of McDonald’s are part of the company’s international developmental licensed markets division, a section that generates around 10 percent of the company’s revenue.
McDonald’s franchisee in Malaysia, owned by Saudi Arabia’s Lionhorn Pte Ltd, filed a lawsuit against BDS Malaysia, accusing the group of “defamation,” and is seeking damages of over $1 million. Meanwhile, the Israel franchisee has supported the Israeli army by supplying its forces with free meals, according to BDS, “during the ongoing genocide of 2.3 million Palestinians in Gaza.”
Starbucks, another Western, Israeli-linked company, has also come out to say that the negative views brought upon the brand have been “influenced by misrepresentation on social media of what we stand for.”
In December 2023, the losses of Starbucks, a Seattle-based company, stood at $11 billion in value during the last quarter, due to Palestinian solidarity boycotts and employee strikes.
The company tried to bounce back on losses by implementing a scheme during the holiday season that would allow consumers to receive a free holiday cup with every purchase.
When announcing the gimmick in mid-November last year, the company’s market share crashed by 8.96 percent, accounting for billions in losses, the lowest the company has experienced since 1992.
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