By Doug Porter
Fast food giant McDonald’s is reportedly spending $3 million daily on U.S. advertising, yet business is declining. As the company has pumped up its menu to counter the explosion of fast-casual restaurants, food quality and service times have suffered. And increasingly negative image of the fast food industry as an exploiter of its workforce certainly hasn’t helped matters.
Last year was the company’s worst in three decades. Domestic sales actually declined by 1.7 percent. Global profits declined by 21 percent in the most recent quarter. Franchise owners are unhappy about menu bloat. Customers are confused by assorted pricing schemes. Employees are appearing on TV holding picket signs. And now the company is facing even more bad news.
A July ruling by the National labor Relations Board deeming the company a “joint employer” with its franchisees could spell big trouble, as 10 former workers at three McDonald’s locations in Virginia have filed a lawsuit alleging they were unceremoniously fired last May after being told by supervisors that there were “too many black people” working at their locations. [Read more…]