McDonald's sued for racial discrimination

Video Credit: Reuters - Politics
Published on September 1, 2020 - Duration: 01:22s

McDonald's sued for racial discrimination

McDonald's Corp has been sued by 52 Black former franchise owners who accused the fast-food giant of racial discrimination by steering them to depressed, crime-ridden neighborhoods and setting them up for failure.

Caroline Malone reports.

Advertisement

McDonald's sued for racial discrimination

McDonald’s Corp is being sued by 52 Black former franchise owners who say the company racially discriminated against them.

They accuse McDonald’s of steering them to depressed, crime-ridden neighborhoods, setting them up for failure –and are seeking up to $1 billion in damages in the federal court in Chicago.

In a phone interview with Reuters, the plaintiffs' lawyer Jim Ferraro said: "It's systematic placement in substandard locations, because they're Black”adding ...“Revenue at McDonald's is governed by one thing only: location." The accusers say they were saddled with standard 20-year franchise agreements at stores that needed high security and insurance, with sales coming in below the national average.

Many venues became bankrupt.

McDonald’s denies treating Black franchises differently, and new CEO Chris Kempczinski said in a video to employees that the company stands for “diversity, equity and inclusion.” But that …"our franchisee ranks should and must more closely reflect the increasingly diverse composition of this country and the world." McDonald's U.S. restaurants are run by around 1600 franchises.

The plaintiff’s lawyer Ferraro says the number of Black-owned franchises has fallen in the last two decades from 377 to 186.

You are here


💡 One News Page Knowledge: Other News Mentions

McDonald's

American fast food restaurant chain
Want to avoid visiting a McDonald's with a broken ice cream machine? There's a website that tracks the fast food chain's locations.
Credit: USATODAY.com - Published 4 days ago

Photo by Romy Arroyo Fernandez/NurPhoto via Getty Images

We’ve all been there. You’re craving a McFlurry, or a Shamrock Shake. You drive to..
5 days ago • The Verge

Jim Ferraro

American litigation attorney and author

Chris Kempczinski

American business executive

Chicago

City and county seat of Cook County, Illinois, United States
A woman who was shot by police last week in suburban Chicago said Tuesday that officers did nothing more than cover her boyfriend with a blanket after he was..
3 hours ago • New Zealand Herald
When his skyscraper proved a disappointment, Donald Trump defaulted on his loans, sued his bank, got much of the debt forgiven — and largely avoided paying..
Credit: NYTimes.com - Published 3 hours ago

A Black woman who was shot by police last week in suburban Chicago said Tuesday that officers did nothing more than cover her boyfriend with a blanket after he..
Credit: USATODAY.com - Published 3 hours ago

A black woman who was shot and wounded inside a vehicle by a police officer who also fatally shot her 19-year-old boyfriend told about 200 people gathered at an..
3 days ago • New Zealand Herald
The second largest wildfire in Colorado history has burned through nearly 300 square miles, larger than the city of Chicago. The fire is less than 10% contained...
Credit: CBS News - Published 3 days ago

Related videos from verified sources

McDonald's Fires Back: Black $1 Billion Discrimination Suit 00:33
Video credit: Wochit - Published 4 days ago 

McDonald's Is Sued by 52 Black Franchisees for Discrimination 01:07
Video credit: Cover Video STUDIO - Published on September 2, 2020 

You might like