Dozens of Black McDonald’s Franchisees Are Cutting Ties with The Golden Arches

According to Business Insider, a recent report from the National Black McDonald's Owners Association (NBMOA) is showing that the income gap between restaurants owned by black franchisees and the systemwide average is growing. The gap between averages has increased from 24,000 in 2012 to 60,6000 in 2017, and black franchisees are leaving the system as a result. Business Insider reported that the number of black franchisees has fallen from 304 in 2008 to less than 200 presently. That’s only about 12% of the total of approximately 1,700 McDonald’s franchisees.

Recently ousted CEO Steve Easterbrook, who took the helm in 2015, famously pushed for innovative but costly technological advancements including third-party delivery services and touch-screen kiosks. The NBMOA argued that Easterbrook’s leadership was too focused on shareholder returns and not considerate of the costly burden these renovations—which disproportionately impacted black franchisees—would take on operators. "He kept talking about the shareholders. It was never about the operators,” said franchisee Juneth Daniel to Business insider. 

This grievance is just one of many that NBMOA and franchisees voiced in the article by Business Insider. Chris Kempczinski, who quickly took over as CEO on November 3, allegedly plans to promote efforts that would bridge the gap. 

PR for McDonald’s hasn’t been great following Easterbrook’s departure, as the brand has been facing numerous lawsuits for sexual harassment and failure to address workplace violence. If Kempczinski really expects to turn things around, it seems that the first step is earnestly listening to and addressing the concerns of both operators and employees alike. 

Read the full story in Business Insider here.