McDonald's Israel wins airport tender despite gov't opposition

McDonald's Photo: Reuters

Minister of Economy Eli Cohen opposed McDonald's taking part in the tender because it refuses to operate branches over the 'green line.'

McDonald's Israel has won the tender to operate fast food outlets at Ben Gurion Airport with a bid of NIS 17 million, the Israel Airport Authority spokesperson has announced. McDonald's Israel has been awarded the concession to operate two restaurants in the Departure Halls at Terminal 3 and fast-food stands in Terminal 1 (for low-cost flights), for a period of seven years, with an option for an additional two years.

The Israel Airport Authority had asked for bids of at least NIS 7 million. McDonald's bid NIS 17 million, while Burger Ranch bid NIS 12 million and Burger King NIS 11 million.

McDonald's Israel has been facing protests in recent weeks because of its refusal to open branches over the 'green line' (land won by Israel in the Six Day War in 1967). Minister of Economy and Industry Eli Cohen had said that he would ask the Attorney General to bar McDonald's from participating in tenders for government companies but to no avail.

The fast food outlets at Ben Gurion airport are currently operated by Burger Ranch under a concession that will expire on October 30, 2019. The Israel Airport Authority estimates annual revenue from the fast food outlets at about NIS 42 million.

Published by Globes, Israel business news - en.globes.co.il - on June 23, 2019

© Copyright of Globes Publisher Itonut (1983) Ltd. 2019

McDonald's Photo: Reuters
McDonald's Photo: Reuters
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