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McDonald’s CEO, Chris Kempczinski, has stated that the company is experiencing a significant decline in business due to a boycott by customers in the Middle East who believe the company supports Israel.
According to Mr. Kempczinski, the calls to boycott McDonald’s by pro-Palestinian groups are rooted in false information.
Activists have called out the popular fast food chain for a recent incident in which franchise locations in Israel provided complimentary meals to Israeli military personnel in the aftermath of the 7 October Hamas attack, as seen in social media posts.
The decision resulted in widespread demands for people to stop supporting the brand from individuals who were upset with Israel’s actions in Gaza. This led to owners in countries with mostly Muslim populations, like Kuwait, Malaysia, and Pakistan, issuing statements to clarify that they were not associated with the brand.
McDonald’s uses a franchising model to run its business, where it depends on numerous independent businesses to own and manage the majority of its over 40,000 stores worldwide. Approximately 5% of these stores are located in the Middle East.
The company has stated that it does not have a stance on the conflict and is not accountable for the actions of its franchisees. These franchisees pay a fee to the company for the use of its brand and recipes.
In a post on LinkedIn, Mr. Kempczinski stated that certain markets in the Middle East, as well as others outside the region, are facing significant disruptions to their business due to the ongoing conflict and false information circulating which is impacting McDonald’s and other brands.
“I am saddened and disappointed by these baseless accusations. McDonald’s is represented by dedicated local owner operators in every country we operate in, including Muslim countries. These individuals work tirelessly to serve and support their communities, providing employment opportunities for thousands of their fellow citizens.”
“We stand in solidarity with the communities and families affected by the conflict in the Middle East. We condemn all forms of violence and strongly oppose hate speech. Our doors will always be open to all,” he stated.
The CEO of McDonald’s has made a statement amidst growing tension surrounding boycotts. The pro-Palestinian group, Boycott, Divestment and Sanctions (BDS), who had previously not focused on McDonald’s, has now officially called for a boycott of the brand.
According to Reuters, McDonald’s Malaysia has recently filed a lawsuit against the Malaysia BDS group for $1.3m (£1m) due to allegations of spreading false and damaging statements that have negatively impacted their business.
BDS Malaysia has denied any defamation of the fast-food company in their response.
The group stated, “We must take action. Let’s demonstrate the power of grassroots boycotts to McDonald’s.”
The CEO of Starbucks, Laxman Narasimhan, stated last month that the company had been misrepresented on social media and that they were a victim of the Israel-Gaza war tension. Mr. Kempczinski, the current leader of a large global corporation, is the second executive to address the impact of this conflict.
Source: independent.co.uk
