POL Black McDonald's franchise owners launch 90-day protest at company headquarters, alleging discrimination

20Gauge

Has No Life - Lives on TB

Change is on the menu.

Activists have launched a 90-day protest at McDonald’s corporate headquarters in Chicago, demanding that the chain recognize and end the systematic racism they say has denied equal opportunities to Black franchisees.

On Monday, organizers gathered at the restaurant’s HQ in the West Loop neighborhood to begin a planned three months of picketing, the Chicago Sun-Times reports. The action preceded a Feb. 23 meeting between brothers and franchise owners James and Darrell Byrd of Memphis, and McDonald’s executives.

According to the outlet, the Byrd brothers filed a class-action lawsuit against the world’s biggest restaurant chain in October, claiming that McDonald’s expansion through the years has been "predatory in nature" against Black-owned franchises.

"The right thing is not being done to African American operators in America with our company," Darrell Byrd was quoted as saying. "I’m still trying to figure out why? Why am I struggling? Why am I paying higher rents for my restaurants? Why am I paying a greater fee to be in the same business as my White counterpart?"

Today, the Byrd brothers each own two franchises, but each once operated many more. James has been a McDonald’s franchisee for 31 years and at one point ran 10 restaurants, while Darrell has been a franchisee for 22 years and once ran four locations. James alleges that McDonald’s closed some of his branches through the years after the fast-food powerhouse "deemed them to be of no value," which he says happened to other Black franchise owners, too.

McDonald’s has about 186 Black-owned franchises across the U.S. today, a plunge from about 337 in the late 1990s, he said. There’s also an annual cash flow gap of $900,000 between Black and White franchise operators, to the tune of $2 million versus $2.9 million, he added.

The Byrds further allege that costs for Black operators is far greater than White counterparts, with Black franchise operators paying higher costs for security and insurance, among other costs, after McDonald's had approved those operators to open only in economically distressed communities, per the Sun-Times.

Now, the Byrds are urging McDonald’s to invest in Black-owned restaurants to bring the number of Black-owned franchises back up to 337, or create a "minority franchise fund" that will invest at least $500 million into a new group of franchises. The brothers also hope that McDonald’s will relax its restrictions and inspections that, they allege, are used to sometimes break franchise agreements.

The protests follow a suit filed last week by Herbert Washington, a former Major League Baseball player and Black franchise owner who alleges that the McDonald’s discriminated against him by keeping his restaurants out of affluent areas, creating a $700,000 difference in sales.

McDonald’s has since announced plans to diversify its leadership following allegations of racial discrimination.

McDonald’s has since announced plans to diversify its leadership following allegations of racial discrimination. (iStock)
When reached for comment by Fox News on Tuesday, a spokesperson for McDonald’s shared a statement on behalf of Reggie Miller, Global Chief Diversity, Equity and Inclusion Officer.

"McDonald’s takes it commitment to diversity, equity and inclusion seriously and does not tolerate discrimination of any kind. We are working toward our recent DEI goals and continue to drive equitable opportunity under the Arches," Miller said. "We must go further and remain focused on serious action to accelerate meaningful and overdue societal change."
 

mzkitty

I give up.
The Byrds further allege that costs for Black operators is far greater than White counterparts, with Black franchise operators paying higher costs for security and insurance, among other costs, after McDonald's had approved those operators to open only in economically distressed communities, per the Sun-Times.

Well, that's historically where most of "their" people are. I don't think white operators want to trade places with them.

*tsk*
 

20Gauge

Has No Life - Lives on TB
The Byrds further allege that costs for Black operators is far greater than White counterparts, with Black franchise operators paying higher costs for security and insurance, among other costs, after McDonald's had approved those operators to open only in economically distressed communities, per the Sun-Times.

This is totally based upon the area you chose to operate in. This is not driven by MCD

The protests follow a suit filed last week by Herbert Washington, a former Major League Baseball player and Black franchise owner who alleges that the McDonald’s discriminated against him by keeping his restaurants out of affluent areas, creating a $700,000 difference in sales.

Who knows. This is very possible.

James alleges that McDonald’s closed some of his branches through the years after the fast-food powerhouse "deemed them to be of no value," which he says happened to other Black franchise owners, too.

Probably true. They were not generating the cash needed to feed MCD at the rates they demand. MCD is ruthless in what they charge and how much a place should generate. It is constantly going up. When I ran one, prices of MCD supplies (everything is supplied by them) would go up weekly. The owners had to raise prices once or twice a quarter just to keep making the same.

If you are in a bad area, you can not absorb these numbers. Then MCD will shut you down before the week is out.
 

packyderms_wife

Neither here nor there.
According to the outlet, the Byrd brothers filed a class-action lawsuit against the world’s biggest restaurant chain in October, claiming that McDonald’s expansion through the years has been "predatory in nature" against Black-owned franchises.

"The right thing is not being done to African American operators in America with our company," Darrell Byrd was quoted as saying. "I’m still trying to figure out why? Why am I struggling? Why am I paying higher rents for my restaurants? Why am I paying a greater fee to be in the same business as my White counterpart?"

Simple math. When you own a franchise in a major city, especially places like chicago where McDs are often targeted by low life's for turf wars and huge pay outs, you're going to pay more in taxes, insurance, rent per square foot, etc.

Btw the three McDs in my town are now owned by a black family. I'm sure they wonder why their rent is higher than the McDs in Des Moines. Simple math, everything is more expensive in an almost exclusively white collar university town.
 

packyderms_wife

Neither here nor there.
Today, the Byrd brothers each own two franchises, but each once operated many more. James has been a McDonald’s franchisee for 31 years and at one point ran 10 restaurants, while Darrell has been a franchisee for 22 years and once ran four locations. James alleges that McDonald’s closed some of his branches through the years after the fast-food powerhouse "deemed them to be of no value," which he says happened to other Black franchise owners, too.

I'm guessing these stores that were deemed to be of no value were in the hood and were often vandalized, employees attacked by gang members, and she boons whose order wasn't correct or because that location had run out of chicken nuggets. That's the only reason I can see McDs corporate closing locations.
 

20Gauge

Has No Life - Lives on TB
I'm guessing these stores that were deemed to be of no value were in the hood and were often vandalized, employees attacked by gang members, and she boons whose order wasn't correct or because that location had run out of chicken nuggets. That's the only reason I can see McDs corporate closing locations.
They actually close stores all the time. Several hundred per year. The corporate locations are the fat cats and are not given to franchisers.

They close any and all franchisers who can not meet revenue projections from corporate.
 

Kathy in FL

TB Fanatic
They actually close stores all the time. Several hundred per year. The corporate locations are the fat cats and are not given to franchisers.

They close any and all franchisers who can not meet revenue projections from corporate.

This is both the why of their long term success and the why of their current slump. They refuse to do anything outside the box. They just rotate in and rotate out the same items and call them "seasonal." And the financials are designed to squeeze every last drop. They don't care what color you are as long as they get the green. And they take their cut off the top.
 

20Gauge

Has No Life - Lives on TB
This is both the why of their long term success and the why of their current slump. They refuse to do anything outside the box. They just rotate in and rotate out the same items and call them "seasonal." And the financials are designed to squeeze every last drop. They don't care what color you are as long as they get the green. And they take their cut off the top.
The top / bottom and middle.

All that matters is gross sales.

They would force people on to shifts at franchise stores just so they can get a few dollars more in revenue at the cost of dozens of dollars in labor.

Guess which part they got a cut of?

Sure wasn't labor.
 

packyderms_wife

Neither here nor there.
Burn it down.

If I was a black man and felt the White man was holding me back. I'd reinvent the wheel ,start my own fast food franchise . Call it Tyrone's chicken and chitlins then if things went tits up I would have no one to blame but myself.
There in lies the problem, taking personal responsibility... it's a disease with most liberals.
 

greysage

Veteran Member
Burn it down.

If I was a black man and felt the White man was holding me back. I'd reinvent the wheel ,start my own fast food franchise . Call it Tyrone's chicken and chitlins then if things went tits up I would have no one to blame but myself.
Guess that's being too white tho.
You're not trying hard enough to be less White with suggestions like that (*Be Less Certain.)
 

PghPanther

Veteran Member
"The right thing is not being done to African American operators in America with our company," Darrell Byrd was quoted as saying. "I’m still trying to figure out why? Why am I struggling? Why am I paying higher rents for my restaurants? Why am I paying a greater fee to be in the same business as my White counterpart?"

Translation: more "Gibsmedat"!!!!!
 

psychrn

Contributing Member

Texican

Live Free & Die Free.... God Freedom Country....
Parkland Hospital added a McDonald's several decades ago. The operator was a black McDonald's owner of three stories that he sold. From information available, the Parkland store made more than his other three McDonald's combined due to locked in clientele at the hospital. They had call in lines where staff could order and walk up and pay for their meals and walkout.

This McDonald's was the second largest in America when it was constructed and was always packed. They closed for 3 or 4 hours in the wee hours of the morning for cleaning and stocking so the store would be ready for the breakfast rush.

Not certain about other black owned McDonald's, but the Parkland McDonald's was very successful.

Texican....
 

nehimama

Veteran Member
They pay more for insurance and security. Do they even consider that their clientele may be the cause of that?
 

The Snack Artist

Veteran Member
Looks like the liquor store in the bad neighborhood where we would buy our booze. Once the owner walked me out to my car. I thought I was going to be busted and asked him what was up?

His answer was that people were being robbed out here regularly. He was making sure a good paying customer got out of there ok. Smart guy.

Star Food and Liquor
 
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