McDonald’s is facing a grassroots boycott led by The People’s Union USA, an advocacy group calling for corporate accountability, fair wages, and an end to what it describes as price gouging. The campaign, which began in late June 2024, follows a period of financial volatility for the fast-food chain, including a deadly 2024 E. coli outbreak and shifts in corporate diversity policies.
Why is The People’s Union USA boycotting McDonald’s?
The boycott, organized by The People’s Union USA founder John Schwarz, targets the company’s labor practices, tax strategies, and pricing. According to a statement provided to Newsweek, the group alleges that McDonald’s has built a global empire on low-wage labor and aggressive lobbying while failing to provide adequate support for its workforce. The union’s demands include "fair taxes, an end to price gouging, real equality, and corporate accountability."
The boycott coincides with broader criticism regarding the company’s menu pricing. In October 2023, U.S. Senators Elizabeth Warren, Bob Casey, and Ron Wyden sent a letter to McDonald’s corporate leadership questioning the company’s profit margins. According to the senators’ letter, McDonald’s operating profit margins reached 52% in the year of the inquiry, which the lawmakers identified as the highest among the ten largest publicly traded fast-food companies.
How has McDonald’s responded to the allegations?
McDonald’s has officially disputed the claims made by the advocacy group. In a statement to CNN, a company spokesperson stated that the "McDonald’s System generates billions in federal, state and local taxes annually" and reaffirmed its commitment to paying its "fair share."
Regarding the broader criticisms of its business operations, the company told Newsweek that it welcomes "honest dialogue," but characterized the boycott organizers’ claims as misleading. The company maintains that its current focus is on serving its customers and local communities.
Recent corporate policy shifts
The boycott arrives as McDonald’s adjusts its internal corporate structure. In early 2024, the company announced it would retire specific diversity, equity, and inclusion (DEI) goals, including the suspension of external surveys measuring corporate diversity and the removal of requirements for suppliers to commit to specific DEI pledges. According to Reuters, the company also rebranded its internal diversity team as the "Global Inclusion Team." This move mirrors similar policy shifts at other major U.S. corporations navigating changing political and social climates following the 2024 election cycle.
Historical context of corporate boycotts
The People’s Union USA has previously targeted other major corporations, including Amazon, Walmart, and Nestlé. Historically, the effectiveness of such grassroots boycotts varies. While large-scale campaigns can influence public perception, market analysts often note that the immediate impact on global revenue for a company the size of McDonald’s—which operates over 40,000 locations worldwide—is difficult to quantify in the short term. The company’s recent financial recovery efforts, which included a $60 million investment in franchisee support and a $35 million marketing push for value meals following the E. coli outbreak, illustrate the high costs associated with maintaining brand stability during periods of public scrutiny.