In an effort to address concerns about diversity and inclusion, McDonald’s Corp. has announced plans to recruit and train a more diverse set of franchisees across the world. The company is targeting underrepresented groups, including Black and female owners in the U.S., as part of its efforts to increase minority representation.
Increasing Diversity in Franchise Ownership
According to an internal message viewed by Bloomberg News, McDonald’s Chief Executive Officer Chris Kempczinski stated that the company will be more inclusive in finding and training potential franchisees. This includes not only in the U.S. but also in international markets such as Germany, the U.K., and France.
To support this initiative, McDonald’s has pledged to provide $250 million over five years to help finance loans for underrepresented groups, including Black, Hispanic, and female potential restaurant owners in the U.S. This funding will be used to address one of the main barriers to entry for candidates with diverse backgrounds: the high cost of buying a restaurant.
McDonald’s Efforts to Increase Diversity
This move by McDonald’s comes as part of a broader effort by companies to address concerns about diversity and inclusion in the wake of the murder of George Floyd Jr. last year, which sparked nationwide protests and highlighted inequities. McDonald’s has already taken steps to boost minority representation in leadership roles and is tracking and sharing its efforts to improve equality.
Growing Number of Minority Franchisees
As of 2020, more than 29% of all U.S. franchisees were from underrepresented groups, including Asian, Black, and Hispanic owners, according to McDonald’s. Additionally, women made up almost 29% of domestic store owners. To reach qualified candidates from diverse backgrounds, the company is using community groups to identify and recruit potential franchisees.
International Efforts
Internationally, McDonald’s has stated that its efforts are already underway in countries such as Germany, the U.K., and France. The company aims to increase diversity among its franchise owners globally, not just in the U.S.
Lawsuits Against McDonald’s
In recent years, McDonald’s has faced lawsuits from Black store owners accusing the company of discrimination and setting them up to fail in crime-heavy locations. The company is defending itself against these allegations.
Conclusion
McDonald’s pledge to recruit and train a more diverse set of franchisees across the world is a positive step towards increasing diversity and inclusion in the industry. By providing funding to support underrepresented groups, the company aims to address one of the main barriers to entry for candidates with diverse backgrounds: the high cost of buying a restaurant.
Recommendations
To achieve its goal of increasing diversity among franchise owners, McDonald’s should:
- Increase transparency: Share data and progress on diversity and inclusion initiatives to ensure accountability and transparency.
- Provide training and support: Offer regular training and support programs for new franchisees from underrepresented groups to help them succeed in the business.
- Foster a culture of inclusivity: Encourage a culture of inclusivity within McDonald’s, where employees feel valued and supported regardless of their background or identity.
By implementing these strategies, McDonald’s can create a more inclusive environment that benefits not only its franchisees but also the communities they serve.
