McDonald’s admits ‘significant’ impact on business due to boycott campaign over Israel-Gaza conflict
Popular fast food chain McDonald’s says that the boycott campaign by customers in the Middle East and other countries in the wake of the Israel-Gaza conflict has had a “significant” impact on its business.
The company’s business has suffered in the Middle East and elsewhere, where there have been consumer boycotts against it. The reason for the boycott is the perception that the company supports Israel.
Chief executive Chris Kempczynski confirmed this in a LinkedIn post, blaming the backlash on ‘misinformation’. He is the second head of a major US company to speak about the business impact of the war in Israel and Gaza.
Famous coffee brand Starbucks has also been affected by this situation.
Chris Kempczynski wrote in his post, “Due to the war and related misinformation, the Middle East and many markets outside the region are experiencing meaningful business impacts that are impacting brands like McDonald’s.”
“This is disappointing and wrong,” he added.
“In every country where we operate, including Muslim countries, local owner-operators proudly represent McDonald’s.”
McDonald’s relies on thousands of local independent investors to operate its more than 40,000 owned stores worldwide. About five percent of them are in the Middle East.
Since the October 7 attack by Hamas on Israel, McDonald’s corporate headquarters has tried to remain silent on the matter. But despite this, the company could not escape the controversy. After Israel’s attacks on Gaza, McDonald’s Israel said it had delivered thousands of free food boxes to the Israeli army.
The move sparked a boycott of the brand by people outraged by Israel’s actions in Gaza, prompting owners in Muslim-majority countries such as Kuwait, Pakistan and Malaysia to issue statements of disassociation.
This post by Chris Kempczynski comes as the boycott campaign has gained momentum in recent days.
The pro-Palestinian movement BDS, Boycott of Israel, calls for divestment and embargo. The movement has not officially targeted McDonald’s, but this week it also called for a boycott of the brand.
The move by BDS comes after McDonald’s Malaysia, which is backed by a Saudi company, sued Malaysia BDS for $1.3 million, which McDonald’s Malaysia said BDS Malaysia had committed. made ‘false and false statements’ regarding and harmed their business.
BDS has said that instead of pressuring its print company, McDonald’s Corporation, to terminate its shameful franchise agreement in Israel, McDonald’s Malaysia and its Saudi owner should stand in peaceful solidarity with the Palestinian freedom struggle in Malaysia. are desperately trying to silence the voices of.
“We cannot tolerate this and want to show McDonald’s what a grassroots boycott can do,” he says.
McDonald’s has declined to comment on its damages lawsuit. “We abhor violence of any kind and stand steadfastly against hate speech, and we will always proudly open our doors to all,” Chris Kempczynski said in his message.