Five current and former Black franchisees — including two of the plaintiffs in the case — told Business Insider in interviews over the past year that their businesses suffered due to inequalities within McDonald's.
According to the complaint, plaintiffs made an average of $700,000 less annually than the average across McDonald's US system. The reason for this gap, according to the complaint, is "racial bias and barriers within the McDonald's franchise system." McDonald's denied the allegations that franchisees were unable to succeed due to discrimination, saying in a statement the claims "fly in the face of everything we stand for as an organization and as a partner to communities and small business owners around the world." McDonald's first Black franchisee was Herman Petty, who opened a Chicago McDonald's in 1968.
When Black franchisees joined the system, McDonald's "systematically steered" them to buy locations in Black neighborhoods, according to the complaint. It is often far more difficult to turn a profit in these locations, due to higher insurance and security costs, franchisees said. Tuesday's complaint says that when Steve Easterbrook became McDonald's CEO in 2015, he ushered in a new era of "discriminatory policies" at the company. McDonald's now has 186 Black franchisees, down from 255 in 2015, according to the complaint.
"It wasn't about the franchisee and the partnership at McDonald's," Daniel said of McDonald's under Easterbrook. "It's more about making shareholders' pockets fatter." McDonald's CEO Chris Kempczinski.Kempczinski replaced Easterbrook as CEO in November. Easterbrook was terminated from the company following an investigation into a consensual relationship with an employee.
Media outlets lean either to the right or to the left in the US, but never has the US look so fragile and divided, why
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