Waze Founders Eye McDonald's Israel Franchise Deal
Translated & summarized from Israel Hayom by baba
The co-founders of the Israeli cyber company Waze, led by Assaf Rappaport, are reportedly nearing a deal to acquire the franchise for McDonald's in Israel. This potential move comes after the $32 billion sale of Waze to Google. McDonald's has been seeking a new franchisee since April 2024, after repurchasing its Israeli operations for an estimated 2 billion shekels amid international boycotts. Several other business groups are also competing for the franchise rights.
The story in 6 lines · by baba
- Waze co-founders, including Assaf Rappaport, are close to acquiring the McDonald's franchise in Israel.
- The potential deal follows the $32 billion sale of Waze to Google.
- McDonald's repurchased its Israeli operations for an estimated 2 billion shekels in April 2024.
- The repurchase was linked to international boycotts after the previous franchisee aided IDF soldiers.
- Several other prominent Israeli business figures are also competing for the franchise.
- No final agreement has been reached, and McDonald's has not commented.
The co-founders of the Israeli cyber company Waze, including Assaf Rappaport, are reportedly close to acquiring the franchise rights to operate the McDonald's chain in Israel. Rappaport is joined by his Waze co-founders Yinon Costica, Ami Lutvak, and Roi Reznick in this potential venture. However, no final agreement has been reached between the parties.
This move follows the massive $32 billion sale of Waze to Google, one of the largest deals in Israeli tech history. The four Waze founders may now enter the fast-food industry, competing to manage one of Israel's most recognized food chains. McDonald's is the world's largest restaurant chain, with 238 branches across Israel, approximately 80 of which are kosher.
McDonald's has been seeking a new franchisee after its 30-year franchise agreement with Omri Padan concluded in April 2024. Padan, who brought McDonald's to Israel and opened the first branch in 1993, saw his tenure end, leading the global company to repurchase the Israeli operations for an estimated 2 billion shekels. The company has been managing the chain directly since then.
This repurchase occurred amid boycotts against McDonald's in several countries following the outbreak of the "Swords of Iron" war. The boycotts intensified after the previous Israeli franchisee provided meals and benefits to IDF soldiers, drawing criticism internationally. Consequently, the global company decided to regain direct control of its Israeli operations until a new franchisee could be found.
Several other business figures are also reportedly vying for the McDonald's franchise, including Ronen Nemani, owner of the Cafe Cafe chain, in partnership with Canada Israel real estate company; the Horesh family, owners of Union Motors and franchises for H&M and Super-Pharm; Yaakov Shahar, owner of the Meir Group; and Uri Max, owner of the Max Stock chain. A final decision on who will manage McDonald's operations in Israel is expected soon, though no definitive choice has been made yet. Neither McDonald's nor Rappaport's group have commented on the matter.
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