Byron Allen’s Allen Media Group is accusing fast-food giant McDonald’s of racial discrimination and wants them to pay up to the tune of $10 billion.
According to a lawsuit filed by Allen Media Group, the Big Mac-maker is violating federal and state laws by refusing to advertise with AMG’s Entertainment Studios and Weather Group. The suit claims McDonald’s is racially stereotyping against black-owned media companies by creating an “African American” advertising tier with smaller budgets and less–favorable pricing – in contrast to their larger “general market” tier. The suit continues to point out that McDonald’s has a $1.6 billion advertising budget and only spends a meager $5 million with black-owned media companies or just 0.3% of their annual budget.
By comparison, McDonald’s President and CEO Chris Kempczinski salary is $11 million.
Speaking of Kempczinski, Allen joined a letter with a host of other high-profile black business leaders and entrepreneurs rebuking him and McDonald’s of discriminatory practices toward specifically black-owned media companies and franchisee.
In response to AMG’s lawsuit, McDonald’s said that, “Together with our Owner/Operators, we have doubled down on our relationships with diverse-owned partners. 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.”
Despite McDonald’s claim to improve its spending with black-owned media companies, Allen and his fellow businesspersons insist McDonald’s “has categorically discriminated against Black-owned media companies in its advertising spend. Chris, the very definition of systemic racism is when you are ignored, excluded and you do not have true economic inclusion. Black-owned media companies have become extinct from the lack of ad support from companies like McDonald’s.”
The letter further cites that Black executives raised this issue “of economic exclusion and systemic racism” to then McDonald’s Chief Marketing Officer. However, “the issue was ignored and not corrected.”
“We are not surprised that both Black employees/executives as well as the Black franchisees are suing McDonald’s for racial discrimination and unfair treatment. And now you are being sued for $10 billion by Black-owned media. Why?? Because we all firmly believe the culture at McDonald’s is racist and very toxic,” the letter condemns.
McDonald’s is not the first major corporation Allen has taken to task. Allen filed a $20 billion lawsuit against cable giant Comcast in 2015, claiming race was a factor in Comcast’s refusal to air channels from his Entertainment Studios Network, citing Comcast’s decision to carry white-owned channels with similar-size audiences. Last year, the two companies settled, with Comcast agreed to carry three of Allen’s seven cable channels — Comedy.TV, Recipe.TV and JusticeCentral.TV. The pact also amended the terms of Comcast’s existing deal to carry The Weather Channel.
