A new venture is on the horizon for the founders of Wiz, a cyber company, as they aim to expand their business footprint into the fast-food industry. The investment group, including key figures such as Assaf Rappaport, Yinon Costica, Ami Luttwak, and Roy Reznik, is reportedly in the final stages of securing a franchise agreement to operate the McDonald’s brand in Israel.
### McDonald’s Franchise Deal in Progress
Although no formal agreement has been finalized yet, ongoing discussions with McDonald’s international management have progressed significantly. This group is currently the most favored to clinch the deal, having outperformed some of Israel’s major business players who also sought to take over the franchise in a secret tender run by the global fast-food chain.
### The Background of the Franchise Transition
Currently, McDonald’s operates 235 locations across Israel, achieving an annual revenue of around NIS 1.7 billion. The search for a new local franchisee began in April 2024, following a notable development in the market: the global corporation acquired operations in Israel from Omri Padan and the Alonyal company, which had held the franchise for over thirty years.
This global takeover, estimated at approximately NIS 2 billion, occurred amidst regional turmoil and worldwide protests related to the chain. These protests were sparked in part by the local franchisee’s financial contributions to Israeli Defense Forces personnel. Since this acquisition, McDonald’s has been run directly by the parent company, which has expressed intentions to appoint a new local franchisee as per its typical business model, wherein around 95% of its restaurants worldwide are operated by franchisees.
### Entrepreneurs Expanding Horizons
Although Rappaport and his partners lack prior experience in the retail or food industries, their proactive dialogues with McDonald’s global management have given them a strong competitive edge. For these entrepreneurial minds, who made headlines by selling Wiz to Google for $32 billion, this venture signifies another significant step in diversifying their business portfolio into a more traditional sector.
In the past, the investment group ventured into media and advertising. They made notable acquisitions like Reshet 13 and a 60% stake in the Israel Bidur group. Their foray into the fast-food arena reflects a strategic move to broaden their influence across diverse commercial landscapes.