Recently McDonald’s reported its first drop in worldwide sales since the COVID-19 pandemic. This droppage in the sales of McDonald is due to the boycott of Muslim and Pro-Palestine. People do this to stop the violence against innocent ones in the Gaza war. But still the situation is worsened. This boycott to fast food clearly expressed that any such types of conflicts can affect the biggest companies. This situation reflects how companies can be influenced by political and humanitarian concerns, and it’s clear that public sentiment can greatly impact business performance.
It makes sense that the US fast food giant saw a slight drop in global sales. They reported a one percent decrease in the second quarter, which they attribute to lower demand in international markets. France that has most of the muslim community seems to be likely on the top in this decline. The fast food options offered might not be as popular or suitable for local tastes there. This situation highlights how crucial it is for companies to adjust their products and strategies to fit local preferences in different countries to maintain strong sales.
According to the statement of CEO Chris Kempczinski, “ France is one of the markets that has a higher Muslim population.” He added, “ The impact we’re seeing in France has been more significant because of that population.”
The companies claimed that decline in the sale is due to the misinformation. They have reaffirmed their commitment to supporting various local communities, including Muslim communities, despite these challenges. According to the recent report the drop in sales is approximately 1.5%. And the reason behind it is the Gaza conflict. Due to poor behavior of Israel’s government with the Palestinian people, most of the people boycott it. In the United States the drop in sales is very less, about 0.7%. While the company had prices recently in the United States.
This suggests that factors beyond just pricing changes are significantly affecting the sales slump. The company’s emphasis on community support and tackling these external challenges is essential for stabilizing and boosting sales. Their proactive strategy is vital for overcoming these difficult times and restoring consumer trust.
All those boycotted franchisees in affected areas got help from McDonald’s. They are offering great deals such as relief on royalty fees and postponing cash collections to support their partners during this difficult time. Now the question is when and why the boycott started. It was started when the Israeli McDonald’s Franchise gave free food to soldiers that took part in the Gaza war. This conflict started last year in October.
This financial assistance clearly highlights that they want to support their franchisees and help them through this challenging situation. This approach aims to ease the financial impact on those affected by the boycott.
This move from BDS is justified as they called for a Boycott due to the actions of Israel. They also said that Mcdonald’s fully supports the Israeli policies which are totally against BDS. The co-founder of BDS, Omar Barghouti also said that this time is difficult for McDonald’s because of their campaign. If a company is perceived as supporting controversial actions, it is fair for activists to use boycotts to voice their concerns and make a statement. Boycotts can be a powerful tool to drive change and hold companies accountable for their actions, encouraging them to reconsider their positions and policies.
One of the unusual moves from McDonald’s is its decision to buy all of its 225 of its restaurants. This decision is due to the fact that many people boycott it. This also clearly expressed that the company is taking the backlash. Also McDonald’s wants to do this independently without any interference from the Israeli community. Also this is one of the only solutions to compensate for the drop and improve its global image.
