Full Breakdown
Wiz Founders Near Deal to Operate McDonald’s Israel Franchise
By Drooid · · How we work
Core Event
A consortium led by Assaf Rappaport together with his former Wiz co-founders Yinon Costica, Ami Luttwak and Roy Reznik is in the final stages of negotiations with McDonald’s Corporation to acquire the franchise for operating the fast-food chain in Israel. Both the Jerusalem Post and Calcalist report that the group has emerged as the frontrunner among several competing Israeli business consortia, although no definitive agreement has been signed yet.
Background and Context
In April 2024 McDonald’s Corporation purchased the Israeli operations from Omri Padan’s Alonyal company, ending a three-decade franchise that began with the opening of the first branch at Ayalon Mall in 1993. The global buyout—estimated at roughly NIS 2 billion—occurred amid an international boycott of the chain following the Gaza war and criticism of the former franchisee’s discounts to Israeli Defense Forces soldiers. Since the acquisition, McDonald’s has run the Israeli restaurants directly while seeking a new local franchisee, consistent with its worldwide model in which about 95 % of outlets are franchised.
Data and Statistics
- McDonald’s Israel operates 235 restaurants (Jerusalem Post).
- Annual sales turnover is estimated at NIS 1.7 billion (Jerusalem Post).
- At the time of the 2024 acquisition the chain had 225 branches and roughly 5,000 employees (Calcalist).
- The Wiz sale to Google fetched $32 billion, positioning each founder for an estimated pre-tax windfall of about $3 billion (Calcalist).
Official Statements & Responses
McDonald’s Corporation has indicated that the search for a new local franchisee is part of its standard global strategy, emphasizing that the forthcoming agreement will be finalized only after the “final stretch” of talks with the Wiz-led group. No formal contract has been disclosed, and McDonald’s has not issued a public comment on the specific terms of the prospective deal.
Criticism & Opposition
The right-wing advocacy group B’Tsalmo publicly congratulated Rappaport on the prospective franchise acquisition and urged him to open McDonald’s outlets in Judea and Samaria. The organization described Rappaport as an “enthusiastic Zionist” and called for a reversal of the previous franchise holder’s policy of avoiding locations in the territories, which had drawn protests and criticism in earlier years.
