How did McDonald’s emerge as a ‘Flashpoint’ in the Israel-Hamas war?

In the midst of the Israel-Hamas conflict that has stirred anger and apprehension throughout the Middle East, a surprising player has been drawn into the fray: McDonald’s

The chain of events commenced earlier this month when an Israeli McDonald’s franchise, operated by Alonyal Limited, announced its intention to provide complimentary meals to Israeli soldiers and hospitals. This move occurred against the backdrop of Hamas's attack on Israel and Israel's retaliatory strikes in Gaza, which have tragically resulted in the loss of thousands of innocent lives.

With more than 40,000 outlets worldwide as of the end of 2021, McDonald's stands as one of the most globally recognized brands, closely associated with the United States, despite the majority of its restaurants operating as local franchises. Over the years, the chain's unmistakable golden arches have often become symbolic targets, especially in the Middle East, to express anti-American sentiments.

History Repeats Itself:

The emergence of McDonald’s as a focal point in this conflict recalls a time when American brands faced boycotts in the Arab world in the early 2000s, during the second Palestinian intifada and in the aftermath of the U.S.-led invasion of Iraq.

A week into the crisis, franchises in Turkey, Egypt, Jordan, Lebanon, and countries across the Persian Gulf issued statements disassociating themselves from the actions of their Israeli counterparts. One such statement, released by Al Maousherji Catering Company, which operates McDonald’s Kuwait, made it clear that the actions in Israel were an individual and private decision, not endorsed by the international company or other licensees, particularly in the Arab world.

This unique McDonald's episode is impacting it's business in Pakistan as it highlights the complex intersection of international brands and local politics.

Solidarity and Boycotts:

Moreover, franchises in Qatar, Kuwait, Oman, Turkey, Bahrain, the United Arab Emirates, and Saudi Arabia went a step further by contributing funds to Gaza. McDonald’s Pakistan announced a generous donation of PKR 10 million to aid Gaza victims.

Despite these conciliatory gestures, calls for a boycott of the fast-food giant persist, and some locations have been targeted. In Egypt, boycott appeals rapidly spread on social media as people expressed their anger.

In response to the public outrage, Egyptian talk show host Amr Adib encouraged viewers not to boycott the local franchise, highlighting the employment it provides to Egyptians. Egypt's franchisee, Manfoods, highlighted that it offers over 40,000 job opportunities to Egyptian citizens. In response to concerns, a local restaurant called Tafwela offered jobs to McDonald's employees looking to switch.

Meanwhile, Egyptian influencer Ali Ghozlan criticized McDonald’s for not expressing support for Gaza, urging the company to issue a statement showing solidarity.

In response to the pressure, Manfoods pledged to donate 20 million Egyptian pounds ($650,000) for relief efforts in Gaza.

Clarification and Discounts:

In Israel, the local McDonald’s franchise had to contend with rumors that it was supporting the Palestinians, leading to threats of legal action against those spreading such stories. The franchise clarified that it had donated 100,000 meals to security forces and local hospitals and was offering 50 percent discounts to members of the rescue and security forces.

Calls for boycotts of McDonald’s are not unusual in the region, reminiscent of the second intifada era when American products faced boycott campaigns across the Arab world. At that time, McDonald’s Saudi Arabia raised money for Palestinian hospitals, and Egypt's operator emphasized its role in providing jobs to thousands.

In 2003, during the Iraq War, a McDonald’s restaurant in Beirut was targeted in a bomb attack, resulting in injuries to five people. An academic study from the University of Minnesota in 2008 revealed that American multinational corporations, including McDonald’s, adopted strategies such as making donations and emphasizing their impact on local economies to mitigate boycott calls during the second intifada. They also introduced localized offerings, like the McFalafel in 2001.

McDonald's, a symbol of global fast food, has found itself entangled in a complex web of regional politics and public sentiment amidst the Israel-Hamas conflict. This episode underscores how international brands can become unexpected focal points in times of crisis, impacting not just fast-food sales but also local economies, politics, and public opinion.