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Friday, January 05, 2024

Misinformation hurting McDonald’s Middle East business, says CEO


FMT:

Misinformation hurting McDonald’s Middle East business, says CEO


The burger chain has become the target of boycotts 
following the Israeli-Hamas war.



The majority of McDonald’s restaurants around the world are run by franchisees. (AP pic)


CHICAGO: McDonald’s Corp. is experiencing a “meaningful business impact” in the Middle East due to the war between Israel and Hamas, according to chief executive officer Chris Kempczinski.

The burger chain became the target of boycotts after photos and videos on social media showed franchised stores in Israel giving meals to the nation’s soldiers following the Oct 7 Hamas attack. McDonald’s operators in countries including Saudi Arabia, Malaysia and Pakistan said the actions didn’t reflect their own views.

“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,” Kempczinski said in a message posted Thursday on LinkedIn, without providing specifics.

Kempczinski described the situation as “disheartening and ill-founded,” adding that restaurants are operated by local owners.

The majority of McDonald’s restaurants around the world are run by franchisees. Middle East locations are part of the company’s international developmental licensed markets division, which generates about 10% of the company’s revenue.

In October, Kempczinski said he was “deeply disturbed by the acts of antisemitism and Islamophobia” emerging from the war, according to a message seen by Bloomberg News, but he didn’t directly address any impact on the business. McDonald’s representatives didn’t immediately reply to requests for details about the magnitude of the situation.


1 comment:

  1. McDonald's businesses are run in individual countries by their franchisees.
    However , all of them run heavily dependent on McD's global image and footprint.
    None of them can dissociate themselves from how McDonalds is perceived internationally.

    ReplyDelete