Key Takeaways
- Boycott Dates: June 24–30, 2025, organized by The People’s Union USA as part of its "Economic Blackout Tour" .
- Core Grievances: Targets McDonald’s for rolling back DEI initiatives, price gouging (40% avg. price hike since 2019), tax avoidance, and suppressing worker unionization .
- McDonald’s Defense: Claims DEI programming remains unchanged despite "language adjustments," highlights job creation and tax contributions, and dismisses boycott claims as "misleading" .
- Financial Context: Boycott coincides with McDonald’s worst U.S. sales slump since 2020 (3.6% Q1 drop) and a 52% operating profit margin criticized by lawmakers .
- Mixed Precedents: Past boycotts (e.g., Target) dented sales, while others (Amazon) showed negligible impact. Outcome hinges on sustained consumer participation .
Why McDonald’s Became the Bullseye
The People’s Union USA’s boycott didn’t emerge in a vacuum. It’s part of a broader wave of consumer pushback against corporations dialing back diversity pledges after Trump’s 2025 executive orders targeting "illegal DEI" . McDonald’s drew specific heat by quietly axing measurable diversity goals for senior leadership and supplier partnerships in January 2025. They rebranded their DEI team as the "Global Inclusion Team"—a move critics slammed as hollow PR .
John Schwarz, the group’s founder, framed it bluntly: "Their DEI efforts feel more like promotional stunts than real systemic change" . But the anger runs deeper than symbolism. Senators like Elizabeth Warren and Bob Casey blasted McDonald’s for "textbook greedflation," noting menu prices soared 40% since 2019 while operating margins hit 52%—the highest among major fast-food chains .
The Straws That Broke the Camel’s Back
- Worker Wages: Accusations of lobbying against minimum wage hikes despite 2025’s $1.87 billion quarterly profits .
- Tax Tactics: Allegations of exploiting loopholes despite McDonald’s citing "billions" paid in taxes .
- Political Backing: Claims the chain supports "figures threatening democracy" .
McDonald’s Counterpunch: Denials and Data
Facing a PR firestorm, McDonald’s response leaned hard on economics. Their statement emphasized creating "meaningful work" for 800,000+ employees and funneling "millions" to local suppliers. They also spotlighted their tax footprint, insisting they pay their "fair share" annually .
On DEI, U.S. HR chief Jordann Nunn conceded "language changes" but stressed core programs stayed intact. "None of our programming has changed", she told a June conference . Critics called this doublespeak—pointing to abandoned supplier diversity mandates and internal audits as proof of retreat .
The company’s real vulnerability? Its sales slump. With U.S. revenue down 3.6% in Q1 and footfall withering, another hit could force concessions. CEO Chris Kempczinski already blamed "economic uncertainty" for the downturn, but Schwarz’s boycott exploits that very frustration .
Perfect Storm: Boycott Meets Business Blues
Bad Timing for McDonald’s:
- Two straight quarters of U.S. sales declines—worst since 2020 .
- Low/middle-income customers cutting spending amid inflation .
- Recent E. coli scandal (linked to onions) already dented brand trust .
Boycott Advantages:
- Targets McDonald’s during value-meal promos aimed at cash-strapped diners.
- Aligns with Black ex-franchisees’ lawsuit alleging discrimination .
Boycotts: Bark vs. Bite
History’s mixed on whether consumer boycotts cripple giants. The People’s Union’s March push against Amazon flopped—sales actually grew that quarter . But Target’s 40-day boycott, led by pastor Jamal Bryant, did slash revenue. CEO Brian Cornell cited it as a "headwind" alongside dampened consumer confidence .
Why This One Might Stick
- Layered Grievances: Merges DEI outrage with anger over prices/wages—appealing to broader demographics than single-issue campaigns .
- Pre-Existing Weakness: McDonald’s is already wobbling; even a 5% sales dip this week could spook investors .
- Coalition Building: Support from Black churches and senators amplifies pressure beyond grassroots activists .
Still, Schwarz’s movement lacks Target-boycott scale. Success hinges on converting online buzz into real register avoidance.
What’s Next: Beyond the Golden Arches
The People’s Union isn’t stopping here. Their "Economic Blackout Tour" lists upcoming actions:
- July 4: Full spending freeze (no shopping/streaming) .
- July: Month-long boycotts of Starbucks, Amazon, and Home Depot .
- August: Round two vs. McDonald’s, plus Walmart and Lowe’s .
For McDonald’s, the stakes just got higher. Another sales miss could force DEI reversals or price cuts. As Schwarz taunted: "If serving millions and generating billions truly told the whole story, we wouldn’t be having this conversation" .
FAQs
Q: How long does the boycott last?
A: Officially June 24–30, 2025, but an August reboot is planned .
Q: Can skipping McDonald’s for a week really hurt them?
A: Combined with their existing sales crash? Yes. A 5–10% weekly dip could trigger investor panic .
Q: What’s McDonald’s biggest defense?
A: They stress economic contributions—800k+ jobs, "billions" in taxes, and supply-chain spending .
Q: Are prices really up 40% since 2019?
A: McDonald’s admits to hikes but claims they align with rising costs. Independent analysts confirm the ~40% surge .
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