Image 1 1
Here’s something McDonald’s isn’t going to be lovin’.
It’s the subject of a $1 billion lawsuit from 52 former Black franchisees who say they faced racist discrimination and were denied opportunities given to white counterparts within the company, according to Business Insider.
The lawsuit claims the fast food giant insists it is committed to racial equality, but would only profit off of the Black franchisees and would “systematically steer” them to purchase restaurants in Black neighborhoods that were basically predicted to fail. They allegedly gave white franchisees, on the other hand, growth opportunities and chances to purchase locations in thriving, high traffic areas.
McDonald’s facing $1 billion discrimination lawsuit from more than 50 former Black franchisees by ShaCamree Gowdy on Scribd
BACK TO BREWING: Taproom at 8th Wonder Brewery reopens in East Downtown Houston
“Because of their race, the plaintiffs allege, Black franchisees were given locations with higher security costs, excluded from purchasing stores on the open market, given misleading financial data, denied financial support given to white franchisees, and, eventually, given bad reviews as part of a ‘scheme’ to force them out of the McDonald’s system,” Business Insider reported.
According to the suit, the plaintiffs’ yearly revenue of $2 million is far below the company’s national average of $2.9 million in 2019, and $2.7 million between 2011 and 2016.
McDonald’s told USA Today that it denies the allegations and are confident an investigation will show just how committed it is to diversity within the company.
“These allegations 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,” it said in a statement.
There are currently about 14,000 McDonald’s locations in the U.S., USA Today reported in 2018, and 186 of them are operated by Black franchisees, compared to 377 in 1998.