The race for the McDonald’s franchise in Israel is heating up: Moshe Mano, owner and chairman of Mano Maritime, is interested in the franchise and has reached out to business circles about it. Mano is trying to join an investment group—or establish one—to compete for the rights.
As reported by ynet and Yedioth Ahronoth, McDonald’s Global has begun searching for a buyer for the franchise after it took over operations in Israel following October 7th. One of the conditions set by McDonald’s Global is that the buyer or buyers group include an investor with sector expertise.
This is one of the most valuable and sought-after franchising rights in Israel, as McDonald’s is a global mega-brand and icon; the franchise is estimated to be worth about $200 million, with annual sales in Israel estimated at 1.7 billion shekels (about $509 million).
Mano owns Mano Maritime, which includes a cruise ship and cruise lines, as well as the Crowne Plaza Haifa hotel, several hotels in Europe, the luxury senior residence Avantgarde Residence in Haifa, and real estate throughout the country. In shipping, he owns passenger and cargo vessels, and is the agent in Israel for international shipping companies. His shipping business also includes catering on the cruise ship Crown Iris, which serves 1,800 passengers three meals a day in four onboard restaurants, along with food supply operations—similar to those in his hotels and nursing home.
The process of seeking a franchisee is being handled by a local representative on behalf of McDonald’s, who has approached well-known business figures in Israel, in parallel with direct approaches received by McDonald’s Global. Interested parties have signed confidentiality agreements. Among them: Ori Max, owner of Maxstock under Apax Partners; large real-estate and mall groups; and a group of McDonald’s executives who are exploring the formation of a consortium.
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McDonald’s Global suffered significant damage from a drop in sales in pro-Palestinian countries since the October 7 Hamas massacre. A campaign initiated by Omri Padan, the previous franchise owner, to distribute meals to soldiers—which sparked outrage in the Arab world—has likely led McDonald’s Global to prefer an indirect rather than direct relationship with the local market.