Byron Allen sues McDonald’s for racial discrimination
The media mogul is seeking $10 billion in damages.
Byron Allen’s Allen Media Group (AMG) has filed a $10 billion lawsuit against McDonald’s for racial discrimination.
According to Deadline, Allen is accusing the company of not giving Black-owned media a fair amount from their advertising budgets. The lawsuit, which was filed in the Superior Court of California in Los Angeles, alleges that the popular fast food company is racial stereotyping and violating federal and state laws by refusing to contract with AMG’s Entertainment Studios and Weather Group.
African Americans reportedly represent 40% of U.S. sales at McDonald’s, but Black-owned media gets less than $5 million out of the company’s $1.6 billion in annual television advertising.
“Together with our Owner/Operators, we have doubled down on our relationships with diverse-owned partners,” McDonald’s said in a statement to Deadline. “This includes increasing our spend with diverse-owned media from 4% to 10% and with Black-owned media from 2% to 5% of total national advertising over the next four years. Once we receive the complaint, we will review and respond accordingly.”
Allen and other Black media owners sent a letter to McDonald’s CEO Chris Kempczinski urging the company to commit 5% to 15% of its advertising and marketing payout to Black-owned media.
Last year, REVOLT reported that 52 former franchisee owners filed a lawsuit against McDonald’s for racial discrimination alleging that the company systematically discriminated against the Black franchise owners by “offering better financial support and more favorable locations to their White counterparts.”
The former owners also stated that the fast-food chain gave them less time than their white counterparts to rebuild or renovate their restaurants and offered them less support financially. According to the lawsuit, the number of Black franchise owners has declined from almost 400 in 1998 to less than 200 today.
The complaint also accuses McDonald’s of “systematically” steering the Black franchise owners towards stores in locations that needed more security and profited less than others.
YOU MIGHT ALSO LIKE
Below, our gift guide highlights some of our favorite Walmart finds for anyone in need of a home refresh.
“REVOLT Black News” correspondent Kennedy Rue counts down the top five moments from the 2023 Billboard Music Awards, including surprising wins, historic firsts, and dope performances. Sponsored by Amazon.
In this new episode of ‘Bet on Black,’ food and beverage take center stage as aspiring Black entrepreneurs from It’s Seasoned, Black Farmer Box, and Moors Brewing Co. present their business ideas to judges with mentorship from Melissa Butler. Watch here!
Take a look inside the Makers Studio presented by Walmart at REVOLT WORLD, a space where Black creators could hone in on their brand and see it come to life.
Fly Guy DC taps in with REVOLT WORLD attendees to learn what the Opportunity Center, presented by Walmart, means to them and their futures.
Walmart supports HBCU students and encourages them to be Black & Unlimited. Fly Guy DC talked to a few at REVOLT WORLD about how being an HBCU student has changed their lives.
In the season finale of “Bet on Black,” special guest judge Ray J joins as the finalists take the main stage to show they have what it takes to win the $200,000 grand prize; Melissa Butler and Eunique Jones Gibson mentor. Presented by Target.
REVOLT is continuing its impactful partnership with Walmart by teaming up to showcase Black creatives at HBCUs all-across America. The panel consisted of three experienced, accomplished Black HBCU alumni: Actor and media personality Terrence J, entertainment attorney John T. Rose, and actress and “REVOLT Black News” correspondent Kennedy-Rue McCullough.
The health of a community can often be traced to the health of the environment that surrounds it. In Atlanta, a woman named Dr. Jaqueline Echols has dedicated her life to helping ensure that people in economically underserved communities have clean rivers – for better health and for the joy of outdoor recreational space.
Join Kennedy Rue on “REVOLT Black News Weekly” as she dives into the world of Black entertainment in 2023. In this episode, we welcome the iconic Ludacris, celebrated producer Will Packer, and renowned director Tim Story. Together, they explore the cultural shifts in Hollywood, emphasizing the importance of Black representation in holiday films. The discussion highlights ‘Dashing Through the Snow,’ a Christmas movie that celebrates Black joy and tackles deeper themes of faith and childhood trauma. Watch!
Here’s a list of rappers who are named after food. Enjoy — or shall we say, “Bon appetit”?
In this exclusive interview, DDG opens up about his fashion inspiration, what drew him to girlfriend Halle Bailey, dealing with negative opinions about his relationship, and more. Read up!
The artist has remained remarkably consistent in her song lyrics about making money, telling off haters and feeling liberated since her debut.
Whether it be the triumphant “Not Afraid” or resilient “Soldier,” Eminem’s music has the power to inspire you to reach your goals.
The next time you’re looking for a caption for your perfectly curated Instagram, there’s a 95 percent chance that Drizzy’s got you!