Wiz Founder Assaf Rappaport Set to Acquire McDonald's Israel Franchise
Translated & summarized from Ice by baba
Businessman Assaf Rappaport and his Wiz co-founders are nearing a deal to acquire the franchise for McDonald's Israel, managing around 230 branches with 1.8 billion shekels in annual revenue. This follows McDonald's global repurchase of the Israeli operations in April 2024 amid boycotts. Rappaport's group, despite no prior food industry experience, emerged as the sole candidate after competing with other major Israeli business entities. The move signifies a major expansion for the founders beyond their tech ventures.
The story in 6 lines · by baba
- Assaf Rappaport's investment group is close to acquiring the McDonald's Israel franchise.
- The deal involves approximately 230 branches and an estimated annual revenue of 1.8 billion shekels.
- McDonald's global repurchased the Israeli operations in April 2024 due to boycotts.
- Rappaport's group includes Wiz co-founders Yinon Costica, Ami Lutvak, and Roi Reznik.
- The group has invested in media and advertising, including Channel 13.
- Other prominent Israeli business figures also vied for the franchise.
Businessman Assaf Rappaport, founder of the cybersecurity firm Wiz, is reportedly close to acquiring the franchise for McDonald's operations in Israel. While the deal is not yet finalized, Rappaport's investment group, which includes Wiz co-founders Yinon Costica, Ami Lutvak, and Roi Reznik, is the sole candidate and appears poised to secure the agreement. The group, also reportedly led by Rappaport who owns a controlling stake in Channel 13, is said to have outbid several prominent Israeli business groups.
The acquisition would place approximately 230 McDonald's branches across Israel, generating an estimated annual revenue of 1.8 billion shekels and a profit margin of around 10%, under their management. This move follows McDonald's global decision to find a new local franchisee after purchasing the Israeli operations back from former franchisee Omri Padan in April 2024 for an estimated 2 billion shekels. The global corporation's repurchase occurred amidst the "Swords of Iron" war, following widespread boycotts and protests against the chain, partly due to the local franchisee's donations and discounts to IDF soldiers, which reportedly caused billions in losses for the global company.
Since the repurchase, McDonald's Israel has been directly operated by the parent company, utilizing the existing local management team. The quiet tender process for a new franchisee attracted significant interest from major Israeli business figures, including Uri Max (Max Stock), Yaakov Shahar (Meir Group and Maccabi Haifa), the Horesh family (H&M, Union Motors, Super-Pharm), and a group led by Ronen Nemani (Cafe Cafe).
Despite Rappaport and his partners lacking prior experience in the food or retail sectors, their direct engagement with McDonald's international management in recent months has positioned them as the likely recipients of the franchise. This venture represents a significant expansion for the Wiz founders beyond the tech industry, leveraging their investment arm. Following the sale of Wiz to Google for $32 billion, they have invested heavily in media and advertising, including acquiring control of Channel 13 and a majority stake in "Israel Entertainment."
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