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Rev. Al Sharpton Threatens Action Against McDonald's Over Racial Discrimination

The fast food chain had been sued by several Black franchise owners for persistent racial bias.

Black McDonald’s Franchise Owner Sues Company, Citing Persistent Bias

On Thursday (April 27), Sharpton sent a letter to Chris Kempczinski, CEO of the McDonald’s Corporation addressing numerous accusations of racial discrimination levied at the company.

“We find it appalling and inexcusable that McDonald’s Corporation has not satisfied its differences with the Black community,” Sharpton’s letter stated. “There are lawsuits brought by Black franchises. Another was brought by a Black former executive over racial discrimination from the highest levels. And let’s not forget the $10 billion lawsuit brought by Byron Allen over the fact that Black-owned media did not get its fair share of McDonald’s supersized advertising budgets.

“We are also outraged at the removal of John Rogers, a well-respected business leader for the Black community, from the Board of Directors. We unequivocally demand they immediately acknowledge and address these issues, or we will begin a national campaign around Mcdonald's. You cannot sell Black folks Big Macs and give us little justice.”

Over the last few years, McDonald’s has been the target of several lawsuits by Black franchise operators citing persistent racial bias.

McDonald’s settled a racial discrimination lawsuit with two Black franchisees who owned four restaurants in Tennessee in December 2021.

In their lawsuit,  James and Darrell Byrd accused McDonald’s of consistently assigning Black franchise owners to restaurants in economically depressed locales with high insurance costs. Additionally, the suit alleged, “that the company systematically denied equal opportunities for growth and financial assistance to Black franchisees compared to their white counterparts.”

Black McDonald’s Franchise Owner Sues Company, Citing Persistent Bias

The brothers reached a settlement with McDonald’s and the company agreed to purchase all four of their restaurants for $6.5 million, saying it was “a fair price.”

In February 2021, Herbert Washington, a former McDonald’s franchise operator, and retired MLB player, filed a lawsuit against the corporation claiming he was forced to open and manage “less profitable restaurants” in predominantly African American, lower-class neighborhoods because he was Black.

“By relegating Black owners to the oldest stores in the toughest neighborhoods, McDonald’s ensured that Black franchisees would never achieve the levels of success that White franchisees could expect,” the lawsuit stated. “Black franchisees must spend more to operate their stores while White franchisees get to realize the full benefit of their labors.”

McDonald’s settled with Washinton and he dismissed his suit in December 2021. According to the agreement, Washington left the McDonald’s System and the company agreed to purchase his 13 restaurants for $33.5 million.

In response to the settlement, McDonald’s released a statement saying that the company didn’t violate any laws of racial discrimination.

“Discrimination has no place at McDonald’s,” the statement said. “While we were confident in the strength of our case, this resolution aligns with McDonald’s values and enables us to continue focusing on our commitments to the communities that we serve.”

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