McDonald’s has lost many customers since June 2024. Customer visits have decreased by 2% compared to last year.
This happened because the People’s Union USA group, which has over 500,000 Instagram followers, told people to stop going to McDonald’s.
They organized a boycott in June as a test. Now they’re doing a bigger boycott for the whole month of August. McDonald’s serves 68 million people every day at 40,000 restaurants.
From One Week to One Month: Boycott Grows Stronger
The June boycott lasted one week, but now, the August boycott is set to last a whole month. John Schwarz leads The People’s Union USA.
He said this boycott shows “strength and people power.” His group has previously boycotted Amazon, Walmart, and Target.
But McDonald’s is their biggest target yet. The longer the boycott lasts, the stronger the group and the more support it will have.
McDonald’s Has Faced Protests Before, But This Is Different
McDonald’s has faced boycotts before. In the 1990s, environmental groups protested against them.
There was also a famous court case called “McLibel” in London. Recently, some people boycotted McDonald’s because they disagreed with the company’s position on Gaza.
But this new boycott is different. It focuses on how McDonald’s treats workers and operates in America, not world politics.
Rising Prices Already Hurt McDonald’s Before Boycott Started
McDonald’s was already struggling before the boycott started. In early 2024, their sales dropped 3.6%, the worst since 2020.
Food prices at McDonald’s have increased 40% since 2019, much higher than regular prices for other things.
Many customers, especially those without much money, stopped coming because it got too expensive.
The CEO admitted that customers are careful about where they spend money.
August Boycott Officially Launches Nationwide
On August 1, 2024, The People’s Union USA started its month-long boycott of McDonald’s.
They’re upset about five things: McDonald’s not paying enough taxes, high prices, opposition to unions, bad treatment of suppliers, and cutting diversity programs.
John Schwarz, who teaches meditation and has over 500,000 Instagram followers, said the boycott is about more than just food – it’s about corporate power.
The group tells Americans to avoid McDonald’s all of August and go to local small businesses instead.
Boycott Spreads From Coast to Coast
The boycott is happening in many states, from California to New York to Florida to Illinois.
Over 40 former Black McDonald’s franchise owners from over 12 states joined the boycott. These owners are also suing McDonald’s, saying the company mistreated them compared to white owners.
Local news has covered the boycott in Houston, California, and the Midwest. This shows that the movement can organize people nationwide, not just online.
Former Franchise Owners Tell Their Stories
Kenneth Manning used to own seven McDonald’s restaurants in Alabama. He says McDonald’s treated and punished him unfairly when he complained about unequal treatment.
His lawyer, Quinn Rollins, said, “Once they started complaining about unequal treatment, there was payback.” Van Jakes, a former NFL player who owned McDonald’s restaurants, had similar bad experiences.
These personal stories show the real problems behind the bigger lawsuit.
Competitors Could Benefit While McDonald’s Struggles
While McDonald’s faces boycotts, other fast food chains like Burger King and Wendy’s don’t have the same problems.
If people do avoid McDonald’s, this could help competitors get more customers. Most big chains work with fair food programs, but Wendy’s faces a boycott for not joining.
If the McDonald’s boycott works, it could help other restaurants get more business.
Stock Price Stays Strong Despite Customer Losses
Even with the boycott, McDonald’s stock price has stayed strong. The company is worth about $216.58 billion, and stock prices rose 5.68% this year.
This shows that investors still believe in McDonald’s long-term success. However, the 2% customer drop in June proves that boycotts can hurt the business even when stock prices look good.
Big investors are observing the situation.
McDonald’s has restaurants worldwide, so problems in America might not hurt the whole company.
McDonald’s Quietly Cut Diversity Programs This Year
The most significant unreported effect might be McDonald’s quietly backing away from diversity programs in 2024. The company removed diversity goals, ended requirements for diverse suppliers, and renamed its diversity team.
They made these changes months before the boycott, suggesting they expected trouble. This shows how pressure campaigns can change corporate policies before boycotts officially start.
McDonald’s is one of over 30 big companies that have cut back diversity programs due to political pressure.
Black Franchise Owners Say They Were Treated Unfairly
The frustration goes beyond just the people suing McDonald’s. Former franchise owners say Black operators were sent to “the oldest stores in the toughest neighborhoods.”
Herbert Washington, who once owned 27 restaurants, said McDonald’s “targeted me for destruction” after he spoke up for Black franchise owners.
These discrimination claims go back decades and happened under different CEOs. Documents show the franchise system had different rules for other people based on race, which goes against McDonald’s public diversity messages.
Company Leadership Has Changed Over the Years
McDonald’s has changed leaders since Don Thompson, their first Black CEO, left in 2015. Current CEO Chris Kempczinski has been criticized for how the company handles diversity and franchise relationships.
McDonald’s settled a lawsuit with Byron Allen about racial stereotyping in ads, but didn’t say how much they paid.
Leadership changes have happened simultaneously, as fewer Black franchise owners and less money for diversity programs.
McDonald’s Tries Different Ways to Fix the Problems
McDonald’s has tried to address the criticism. They promised $250 million over five years to help minority franchise owners.
They also said they spent 25% of their supplier budget with diverse-owned companies three years earlier.
But critics say these efforts are just “fake diversity with no real change.” McDonald’s has introduced new cheap meals and marketing to win back customers, but the fundamental problems with pricing and franchise treatment haven’t been fixed.
Business Experts Question Whether Boycotts Work
Business experts aren’t sure if boycotts work long-term. They say past boycotts against big brands have had mixed results.
“Boycotts are very hard to organize,” experts say, especially against huge companies like McDonald’s. The company makes money worldwide, so American boycotts might not hurt them much.
But social media pressure and lawsuits simultaneously create new challenges that older boycott models didn’t have.
What Will Happen to McDonald’s Next?
Essential questions come up as McDonald’s deals with this challenge. Can a movement with 500,000 social media followers affect a company that serves 68 million people daily?
The August boycott tests whether grassroots groups can pressure big corporations. No one knows how to measure success, will McDonald’s change its policies, or will the movement lose steam?
The results might influence how future movements organize against big companies.
The biggest question: In a time when corporations have more power, can traditional boycotts still create social change?