Anti-Israel Boycotts Hurting Sales in Mideast, Says McDonald’s Chief

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The Boycott, Divestment, Sanctions (BDS) movement, a pro-Palestinan organisation, called for people to shun McDonald’s in November because franchisees “openly supported” the Israeli military.

Team Clarion

NEW DELHI – Calls from pro-Palestinan groups to boycott McDonald’s over the Gaza conflict were harming operations in Middle East, the fast food restaurant’s chief executive Chris Kempczinski has said.

McDonald’s has been targeted by pro-Palestinan campaigners after photos and videos on social media showed franchised stores in Israel giving free meals to the nation’s soldiers following the October 7 Hamas attack.

“Misinformation” about our support for Israel is having a “meaningful impact” on its sales in the Middle East, Kempczinski acknowledged in a report carried by Britain-based The Telegraph.

The Boycott, Divestment, Sanctions (BDS) movement, a pro-Palestinan organisation, called for people to shun McDonald’s in November because franchisees “openly supported” the Israeli military.

McDonald’s has argued that it has no position on the war and is not responsible for the action of its franchisees, who pay the company a fee to licence its brand and recipes, the report said on Friday.

The report cited Kempczinski’s blog post on LinkedIn published 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, the post said.

“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,” it said.

The majority of McDonald’s restaurants around the world are run by franchisees.

McDonald’s operators in countries including Saudi Arabia, Malaysia and Pakistan have publicly said they don’t support the actions of franchisees in Israel.

Kempczinski added: “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.”

Kempczinski did not provide details of the magnitude of the sales hit in the Middle East. McDonald’s does not publicly provide sales figures in the region.

Earlier this week McDonald’s Malaysia sued an offshoot of the BDS movement over what it claimed were “false and defamatory statements” related to the Gaza conflict that it claimed hurt its business. Malaysia is a predominantly Muslim country.

McDonald’s Malaysia is seeking damages of more than $1m, Reuters reported.

The Happy Meal chain is one of a number of major companies that have found themselves targeted by campaigners in the wake of the Israel-Gaza conflict.

Starbucks has invoked ire on both sides of the divide after suing a staff union in Iowa for expressing “solidarity with Palestine” on social media. Israeli sympathisers and Jewish groups accused the company of promoting hate through the post, while Pro-Palestinian campaigners have called for a boycott of the coffee chain in response to the law suit.

Using similar language to Kempczinski, Starbucks chief Laxman Narasimhan last month said the company was the victim of “misrepresentation on social media of what we stand for”.

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