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McDonald’s global chief blames war, boycott ‘misinformation’ for business impact | Scoop
According to McDonald's CEO Chris Kempczinski, several markets in the Middle East and some outside the region are experiencing a meaningful business impact as a result of the Israel-Palestine war and associated misinformation that is affecting brands like McDonald's. – Abdul Razak Latif/Scoop pic, January 6, 2024
News

McDonald’s global chief blames war, boycott ‘misinformation’ for business impact

He emphasises presence of McDonald's in Muslim countries, which is operated by local owners employing thousands in their communities

Scoop Reporters
Updated
11:23 AM MYT

 

KUALA LUMPUR – McDonald’s business has been impacted by Israel’s war and “misinformation”, the global brand’s chief executive officer, Chris Kempczinski, said.

He acknowledged the impact of boycotts in a post on LinkedIn, blaming misinformation, which he said was disheartening.

“I also recognise that 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. 

“This is disheartening and ill-founded,” he said.

While Kempczinski gave no figures, it has been reported that McDonald’s global sales were 10.9% in the fourth quarter of last year.

Boycott calls began soon after October 7, when photos of Israeli soldiers enjoying McDonald’s takeaway meals went viral. 

Hamas attacked areas in Israel on October 7, and since then, the Zionist regime has been bombarding Gaza relentlessly.

It remains to be seen how a boycott will impact the business, but in Malaysia, McDonald’s, which is suing boycott movement BDS Malaysia, has been grappling with losses and has laid off an undisclosed number of employees.

Kempczinski stressed that in Muslim countries where McDonald’s operates, the company is represented by local owner operators, who employ “thousands of their fellow citizens”.

“That local community connection is the genius of the McDonald’s system,” the CEO said.

McDonald’s Malaysia is suing BDS (Boycott, Divestment, Sanctions) Malaysia for RM6 million, of which RM3 million is for loss of profitability due to shorter business hours, RM1.5 million is for severance compensation to be paid to former employees, and RM1.5 million is for expired food products and raw material waste.

The fast-food chain also wants BDS Malaysia to issue an unconditional apology via their website, Facebook and Instagram pages, as well as to take down the defamatory social media posts that featured the brand’s logo in calling for a boycott and to reveal the identities of all parties involved in spreading the posts. – January 6, 2024

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