The black owner of 14 McDonald’s franchises says the company favors white owners and denies him the opportunity to buy restaurants in more affluent communities, according to a civil rights lawsuit filed Tuesday in federal court in Ohio.
The lawsuit, filed by former professional baseball player Herbert Washington, alleges that the Chicago-based fast food chain discriminated against him, leading to a $ 700,000 sales gap between Black and White’s McDonald’s franchises.
Franchises in low-income neighborhoods cost more to operate, have higher staff turnover, and aren’t as profitable, claims Washington, a former Michigan State University runway star who played part of two seasons with the Oakland Athletics in the mid-1970s.
“By relegating Black owners to the oldest stores in the most difficult neighborhoods, McDonald’s ensured that Black franchisees would never achieve the level of success White franchisees could expect,” the lawsuit said. “Black franchisees have to spend more to run their stores, while white franchisees can realize the full benefit of their work.”
More than 50 former Black McDonald’s franchise owners made similar claims in a lawsuit filed against the company in October, saying they had been forced to sell about 200 stores over the past decade.
“Me focused on extinction”
During a video news conference on Tuesday, Washington said he has fought a two-tier system since buying his first franchise in Rochester, New York 40 years ago. He owned 27 restaurants at one point, but had to sell seven stores to white owners in recent years, Washington said.
He now has 12 restaurants in Northeast Ohio and two in Pennsylvania. He blames his advocacy on behalf of the owners of Black McDonald’s for his troubles with the company.
“McDonald’s has threatened me with extinction,” Washington said. “The arches are in full retaliation against me.”
McDonald’s denied the claims. In a statement to CBS MoneyWatch, McDonald’s said Washington was “facing business challenges.” The company “invested significantly in its organization,” giving him numerous opportunities to address the issues over the years, McDonald’s added.
“This situation is the result of years of mismanagement by Mr. Washington, whose organization has failed to meet many of our people, operations, guest satisfaction and reinvestment standards,” the company said.
According to the lawsuit, the number of Black McDonald’s franchise owners in the US today stands at 186, up from 377 in 1998. The company replied that while the total number of US restaurants has increased from about 12,500 at the end of 1998 to 14,000 today, the percentage of stores is owned by Blacks “largely unchanged.”