McDonald's hit by Israel-Gaza 'misinformation'

McDonald's, the global fast food giant, is experiencing a significant business downturn. This is due to a boycott by customers in the Middle East and other regions who perceive the company as supporting Israel. The company's Chief Executive, Chris Kempczinski, addressed the issue in a LinkedIn post, attributing the backlash to 'misinformation'. This is the second instance of a major US corporation grappling with the business repercussions triggered by the Israel-Gaza war tension. Starbucks has also been impacted.

In his LinkedIn message, Mr Kempczinski stated that several markets in the Middle East and some outside the region are experiencing a significant business impact due to the war and associated misinformation affecting brands like McDonald's. He expressed his disappointment and refuted these claims. He emphasized that in every country where McDonald's operates, including Muslim countries, the company is proudly represented by local owner operators.

McDonald's operates more than 40,000 stores worldwide, relying on thousands of independent businesses to own and operate the majority of these stores. Approximately 5% of these stores are located in the Middle East. Since the attack on Israel by Hamas on 7 October, McDonald's corporate headquarters has attempted to maintain a low profile regarding the conflict. However, the brand has inevitably been embroiled in the conflict. In the aftermath of the attack, McDonald's Israel announced that it had distributed thousands of free meals to members of the Israeli military. This action incited grassroots calls for boycotts of the brand by those outraged by Israel's military response in Gaza, leading owners in Muslim-majority countries such as Kuwait, Malaysia and Pakistan to issue statements distancing themselves.