Lawsuit says McDonald's discriminates against Black franchisees

THOMSON REUTERS

Sep 1st 2020 5:37AM

Sept 1 (Reuters) - McDonald's Corp has been sued by 52 Black former franchise owners who accuse the fast-food giant of racial discrimination by steering them to depressed, crime-ridden neighborhoods and setting them up for failure.

In a complaint seeking up to $1 billion of damages, the plaintiffs said McDonald's has not offered profitable restaurant locations and growth opportunities to Black franchisees on the same terms as white franchisees, belying its public commitment to diversity and Black entrepreneurship.

The complaint said McDonald's saddled the plaintiffs under its standard 20-year franchise agreements with stores requiring high security and insurance costs, and whose $2 million average annual sales from 2011 to 2016 were $700,000 below the nationwide norm. Bankruptcy often resulted, they said.

"It's systematic placement in substandard locations, because they're Black," the plaintiffs' lawyer Jim Ferraro said in a phone interview. "Revenue at McDonald's is governed by one thing only: location."

The plaintiffs are suing in Chicago federal court five weeks after McDonald's updated its corporate values, pledging a greater focus on diversity.

 

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Chief Executive Chris Kempczinski told CNBC in June that diversity was "critically important" and needed to touch "every single aspect" of its business.

He also defended McDonald's record, saying the Chicago-based company had "created more millionaires within the Black community than probably any other corporation on the planet, but there's still work to do."

Ferraro called that claim "total hogwash," saying the number of Black franchisees has fallen to 186 from 377 since 1998.

More than 90% of McDonald's 14,400 U.S. restaurants were recently operated by about 1,600 franchisees.

The company updated its values before suing ousted Chief Executive Steve Easterbrook to recoup his estimated $41.8 million severance package for allegedly concealing improper sexual relationships with three employees.

Easterbrook said the lawsuit is "meritless."

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College in virus hot spot to let 25,000 fans attend game

Yahoo Sports

RYAN YOUNG

Sep 1st 2020 2:49AM

Ames, Iowa, is the hottest city in the country for the COVID-19 pandemic. 

The Cyclones, however, are still planning to let fans attend football games this fall. 

Iowa State athletic director Jamie Pollard announced on Monday that they will allow about 25,000 fans to attend their season opener against Louisiana-Lafayette at Jack Trice Stadium on Sept. 12. 

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Fans will be required to wear face coverings at all times, tailgating lots will be closed and fans will have to stay in their socially distanced seats. 

“If our mitigation actions are successful, we will allow all season ticket purchasers to attend the Oklahoma game Oct. 3,” Pollard said in a letter to fans, via the Des Moines Register. “However, if we determine that mitigation measures were not followed adequately at the first game, we will have no fans at future games [beginning with Oklahoma].”

Coronavirus spiking in Iowa

The coronavirus is spiking in Iowa — which is currently the worst state in the country in new cases per capita over the past week — and in Ames. The New York Times labeled the central-Iowa college town as the worst city in the country on Monday with 8.2 new cases per 1,000 residents. 

Iowa City, where the University of Iowa is, is currently No. 2 on that list. The Hawkeyes paused workouts for all athletic teams on Monday after finding 93 positive cases among athletes tested last week.

Story County, where Iowa State is located, currently has a 14-day positivity rate of 21.3 percent, per the report. Eighty percent of those cases were in individuals between the ages of 18-40, too. 

Iowa State welcomed students back to campus for in-person classes earlier this month. 

There were more than six million confirmed cases of the coronavirus in the United States as of Monday night, according to The New York Times, and more than 183,000 deaths attributed to it. Iowa has nearly 65,000 cases — 8,000 of which came in the past week. 

While this may seem like a risky move given the situation in the state, Pollard insists he isn’t going to take any chances. If the first game doesn’t go well, he said he won’t hesitate to make a change.

In order for it to work, Pollard said, it’s “almost 100 percent” on the fans to comply with the restrictions they have in place.

“I’ll have zero tolerance for any fan that doesn’t comply, I don’t care how much money they give,” Pollard said, via the Des Moines Register. “If you want to be in the stadium, you’re going to have to comply with what we’ve put together. If you don’t do it, then we don’t want you here. I don’t care who it is.

“This is a big opportunity to support our student-athletes. They want to play. They want to have fans. So we’re putting in place what we feel is necessary for us to be able to do that.”

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St. Louis couple charged after BLM protest appear in court -----Mark McCloskey came out with a semi-automatic rifle and his wife emerged with a semi-automatic handgun. No shots were fired. Missouri law allows homeowners to use force, even lethal force, to defend their homes.

 

St. Louis couple charged after BLM protest appear in court

THE ASSOCIATED PRESS

Aug 31st 2020 12:16PM

ST. LOUIS (AP) — The white St. Louis couple charged for waving guns during a Black Lives Matter protest outside their home in June made their first court appearance Monday on felony charges.

Mark and Patricia McCloskey were in court briefly and did not enter a plea. The judge continued their case until Oct. 6.

After the hearing, the McCloskeys' attorney, Joel Schwartz, said they are innocent of any wrongdoing and they look forward to getting the case resolved.

Several hundred demonstrators on June 28 veered onto the private street where the couple's Renaissance palazzo-style mansion sits. The McCloskeys said the protesters knocked down an iron gate and ignored a “No Trespassing” sign. Protest leaders said the gate was open and the demonstration was peaceful.

Mark McCloskey came out with a semi-automatic rifle and his wife emerged with a semi-automatic handgun. No shots were fired. Missouri law allows homeowners to use force, even lethal force, to defend their homes.

St. Louis Circuit Attorney Kim Gardner said the guns created the risk of bloodshed. The McCloskeys said they felt threatened.

Last week, the McCloskeys made the case in an opening night speech of the Republican National Convention that they had a “God-given right” to defend themselves and their property.

 

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