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CNN
3 hours ago
- Business
- CNN
The ‘economic blackout' movement now wants you to boycott McDonald's, starting today
McDonald's is the latest target of a grassroots 'economic blackout' campaign that has previously targeted other major companies with mixed success. The People's Union USA, led by John Schwarz, is now calling on people to boycott McDonald's beginning Tuesday through next Monday, explaining in an Instagram post that he's demanding 'fair taxes, an end to price gouging, real equality, and corporate accountability.' 'This is a show of strength, solidarity and people powered change,' Schwarz wrote. 'Let them feel it. Let them hear us.' McDonald's did not immediately respond to comment about the boycott. Boycotts are notoriously difficult to organize, and it's not clear that the effort will make a dent in McDonald's bottom line. Nevertheless, the spotlight is shining on McDonald's at a less-than-ideal time for the company, which recently reported its second consecutive quarter of sales declines. Customers, especially in low and middle income brackets, have pulled back their spending amid economic uncertainty. McDonald's has faced backlash from some customers about its prices. The value perception of the chain has dimmed among its cash-conscious customers: The average price of items has soared about 40% since 2019. The company says this is in line with its rising costs. Schwarz didn't immediately respond for comment. His website calls the group 'a grassroots movement dedicated to economic resistance, government accountability, and corporate reform,' adding that the 'goal is to unite Americans against the corruption and greed that has kept us struggling for decades.' Schwarz garnered national attention earlier this year when his group called for an 'economic boycott' on Walmart, Target and Amazon for various reasons, including the roll-back of diversity, equality and inclusion (DEI) programs. In January, McDonald's ended some of its its specific diversity goals, including requiring its suppliers to commit to certain DEI targets. The chain also stopped participating in external surveys that measure corporate diversity, as well as changed the name of its diversity team to the Global Inclusion Team — a common practice for many other companies that have rolled back diversity pledges. Companies have changed their views on DEI following the re-election of President Donald Trump, who opposes the efforts, and a Supreme Court ruling against affirmative action. Online pressure, legal threats and customer opposition have led many companies, including Walmart, Ford, Harley-Davidson, John Deere and others to make changes to their DEI initiatives. Still, Schwartz's bark might be louder than his bite. A March boycott against Amazon had negligible affect to its bottom line with the company posting better-than-expected earnings results during that quarter. The 'economic blackout' effort is relatively uncoordinated and nebulous. Experts on consumer boycotts and corporate strategy are dubious that it will make a dent in the bottom lines of the massive companies that it targets, let alone the vast US economy. However, a 40-day boycott against Target led by megachurch pastor Rev. Jamal Bryant, has been more fruitful. Sales fell last quarter, driven in part by customer backlash to Target's reversal on its DEI programs, the company admitted.


CNN
3 hours ago
- Business
- CNN
The ‘economic blackout' movement now wants you to boycott McDonald's, starting today
McDonald's is the latest target of a grassroots 'economic blackout' campaign that has previously targeted other major companies with mixed success. The People's Union USA, led by John Schwarz, is now calling on people to boycott McDonald's beginning Tuesday through next Monday, explaining in an Instagram post that he's demanding 'fair taxes, an end to price gouging, real equality, and corporate accountability.' 'This is a show of strength, solidarity and people powered change,' Schwarz wrote. 'Let them feel it. Let them hear us.' McDonald's did not immediately respond to comment about the boycott. Boycotts are notoriously difficult to organize, and it's not clear that the effort will make a dent in McDonald's bottom line. Nevertheless, the spotlight is shining on McDonald's at a less-than-ideal time for the company, which recently reported its second consecutive quarter of sales declines. Customers, especially in low and middle income brackets, have pulled back their spending amid economic uncertainty. McDonald's has faced backlash from some customers about its prices. The value perception of the chain has dimmed among its cash-conscious customers: The average price of items has soared about 40% since 2019. The company says this is in line with its rising costs. Schwarz didn't immediately respond for comment. His website calls the group 'a grassroots movement dedicated to economic resistance, government accountability, and corporate reform,' adding that the 'goal is to unite Americans against the corruption and greed that has kept us struggling for decades.' Schwarz garnered national attention earlier this year when his group called for an 'economic boycott' on Walmart, Target and Amazon for various reasons, including the roll-back of diversity, equality and inclusion (DEI) programs. In January, McDonald's ended some of its its specific diversity goals, including requiring its suppliers to commit to certain DEI targets. The chain also stopped participating in external surveys that measure corporate diversity, as well as changed the name of its diversity team to the Global Inclusion Team — a common practice for many other companies that have rolled back diversity pledges. Companies have changed their views on DEI following the re-election of President Donald Trump, who opposes the efforts, and a Supreme Court ruling against affirmative action. Online pressure, legal threats and customer opposition have led many companies, including Walmart, Ford, Harley-Davidson, John Deere and others to make changes to their DEI initiatives. Still, Schwartz's bark might be louder than his bite. A March boycott against Amazon had negligible affect to its bottom line with the company posting better-than-expected earnings results during that quarter. The 'economic blackout' effort is relatively uncoordinated and nebulous. Experts on consumer boycotts and corporate strategy are dubious that it will make a dent in the bottom lines of the massive companies that it targets, let alone the vast US economy. However, a 40-day boycott against Target led by megachurch pastor Rev. Jamal Bryant, has been more fruitful. Sales fell last quarter, driven in part by customer backlash to Target's reversal on its DEI programs, the company admitted.


The Independent
9 hours ago
- Business
- The Independent
Boycott of McDonald's to begin this week: ‘This is about more than burgers and fries'
A grassroots advocacy group is calling for a week-long boycott of McDonald's, accusing the fast food chain of price gouging, unfair labor practices, and avoiding taxes. 'This is about more than burgers and fries, this is about power,' The People's Union USA said in a statement on Instagram. 'When we unite and hit corporations in their wallets, they listen.' The group, which has previously called for boycotts of Amazon, Nestlé, Walmart, General Mills, and Target, accused the Golden Arches of a litany of unsavory tactics. Earlier this month, People's Union leader John Schwarz said McDonald's had a record of 'silencing' workers and blocking union attempts, as well as seeking to 'exploit global supply chains and environmental loopholes' and engaging in performative diversity initiatives while the corporation's 'political donations and lobbying often support candidates and legislation that undermine equity, labor rights, and marginalized communities.' The calls for a boycott come at a delicate time for the fast food giant, following a string of difficulties including a fall 2024 E coli outbreak linked to its Quarter Pounders, as well as decreasing sales and a backlash to its January decision to roll back diversity programs, joining numerous companies that took similar steps with the election of Donald Trump. The Independent has contacted McDonald's for comment. Last fall, Democratic senators accused McDonald's of price gouging in a letter to its corporate leadership. 'McDonald's own reports indicate that the company's price increases may be outstripping inflation,' read the October message from Senators Elizabeth Warren, Bob Casey, and Ron Wyden. 'As a result, McDonald's net annual income rose by over 79% — to nearly $8.5 billion — from 2020 to 2023.' McDonald's has strongly denied price gouging allegations and says its individual franchisees set menu prices, with an emphasis on affordability. Last year, fast food workers in California across various brands including McDonald's formed a union associated with the Service Employees International Union, a major development in an industry with low union penetration. The People's Union USA, which began attracting significant attention earlier this year, has quickly racked up endorsements from prominent celebrities for its efforts, including author Stephen King, actor John Leguizamo, and actress Bette Middler. A GoFundMe for the movement has raised more than $125,000 in the last four months. Its leader, Schwarz, a father of three and meditation teacher who lives in Chicago, was sentenced to 90 days in jail for alleged exploitation related to a cafe he once reportedly owned. In 2007, the activist was sentenced by a Connecticut judge to 90 days in jail for disseminating voyeuristic material, The New York Times reports. Schwarz, 39 at the time of the incident in question, was accused of photographing an unconscious 18-year-old's exposed breast and texting the image to her cell phone, per the paper. The teen worked at the now-closed Sugar Cube Cafe, which Schwarz owned, according to state records obtained by the Times. 'This whole thing was a big scam,' Schwarz told the paper. 'It's going to be expunged. I passed my polygraph test three times. Three times. I did not take a photograph. I did not do anything inappropriate to anybody.' The activist responded to the charge using an Alford plea, in which defendants don't technically admit guilt, but acknowledge prosecutors likely have the evidence to convict them, according to the report.


The Independent
15 hours ago
- Business
- The Independent
‘This is about more than burgers and fries': Boycott of McDonald's to begin this week
A grassroots advocacy group is calling for a week-long boycott of McDonald's, accusing the fast food chain of price gouging, unfair labor practices, and avoiding taxes. 'This is about more than burgers and fries, this is about power,' The People's Union USA said in a statement on Instagram. 'When we unite and hit corporations in their wallets, they listen.' The group, which has previously called for boycotts of Amazon, Nestlé, Walmart, General Mills, and Target, accused the Golden Arches of a litany of unsavory tactics. Earlier this month, People's Union leader John Schwarz said McDonald's had a record of 'silencing' workers and blocking union attempts, as well as seeking to 'exploit global supply chains and environmental loopholes' and engaging in performative diversity initiatives while the corporation's 'political donations and lobbying often support candidates and legislation that undermine equity, labor rights, and marginalized communities.' The calls for a boycott come at a delicate time for the fast food giant, following a string of difficulties including a fall 2024 E coli outbreak linked to its Quarter Pounders, as well as decreasing sales and a backlash to its January decision to roll back diversity programs, joining numerous companies that took similar steps with the election of Donald Trump. The Independent has contacted McDonald's for comment. Last fall, Democratic senators accused McDonald's of price gouging in a letter to its corporate leadership. 'McDonald's own reports indicate that the company's price increases may be outstripping inflation,' read the October message from Senators Elizabeth Warren, Bob Casey, and Ron Wyden. 'As a result, McDonald's net annual income rose by over 79% — to nearly $8.5 billion — from 2020 to 2023.' McDonald's has strongly denied price gouging allegations and says its individual franchisees set menu prices, with an emphasis on affordability. Last year, fast food workers in California across various brands including McDonald's formed a union associated with the Service Employees International Union, a major development in an industry with low union penetration. The People's Union USA, which began attracting significant attention earlier this year, has quickly racked up endorsements from prominent celebrities for its efforts, including author Stephen King, actor John Leguizamo, and actress Bette Middler. A GoFundMe for the movement has raised more than $125,000 in the last four months. Its leader, Schwarz, a father of three and meditation teacher who lives in Chicago, was sentenced to 90 days in jail for alleged exploitation related to a cafe he once reportedly owned. In 2007, the activist was sentenced by a Connecticut judge to 90 days in jail for disseminating voyeuristic material, The New York Times reports. Schwarz, 39 at the time of the incident in question, was accused of photographing an unconscious 18-year-old's exposed breast and texting the image to her cell phone, per the paper. The teen worked at the now-closed Sugar Cube Cafe, which Schwarz owned, according to state records obtained by the Times. 'This whole thing was a big scam,' Schwarz told the paper. 'It's going to be expunged. I passed my polygraph test three times. Three times. I did not take a photograph. I did not do anything inappropriate to anybody.' The activist responded to the charge using an Alford plea, in which defendants don't technically admit guilt, but acknowledge prosecutors likely have the evidence to convict them, according to the report.