Key Takeaways
1. McDonald's Early Success Was Built on Unacknowledged Racial Privilege
Maurice and Richard McDonald, having seen the ravages the Depression wreaked on their family, decided to head west in 1930 to seek their fortunes.
Privilege as foundation. The McDonald brothers' journey to fast-food empire was deeply intertwined with their unacknowledged racial privilege. Their ability to travel freely, access capital, and establish businesses in booming post-war California was a stark contrast to the systemic barriers faced by African Americans, Mexican Americans, and Native Americans in the same era. This foundational advantage allowed them to innovate and expand without the constant threat of racial violence or discriminatory practices.
Segregation's hidden role. While McDonald's itself may not have explicitly segregated customers in its early San Bernardino drive-in, its growth was facilitated by a racially unequal society. The expansion of car culture and highways, for instance, primarily benefited white families moving into new suburbs, while black communities faced:
- Limited car ownership due to lack of capital and discrimination.
- "Green Book" travel for safety, highlighting segregated routes.
- Housing discrimination that concentrated black populations in specific areas.
- Exclusion from well-paying union jobs in manufacturing and military industries.
Kroc's suburban vision. Ray Kroc, upon acquiring McDonald's, initially focused expansion on burgeoning white suburbs, viewing inner cities with "uncertainty." This strategy further cemented McDonald's as a symbol of white middle-class prosperity, while the underlying racial inequalities that enabled this growth remained unaddressed, setting the stage for future conflicts when the Golden Arches eventually turned its gaze inward.
2. The Civil Rights Movement Pivoted from Access to Economic Ownership
What does it profit a man to be able to eat at an integrated lunch counter if he doesn’t have enough money to buy a hamburger?
Beyond legal access. After the Civil Rights Act of 1964 legally dismantled segregation in public accommodations, civil rights leaders like Martin Luther King Jr. recognized that legal victories alone were insufficient. The focus shifted from gaining access to lunch counters to achieving economic justice, questioning the value of integration without the means to participate in the marketplace. This sentiment underscored a growing disillusionment with the limited impact of legislative change on black economic security.
Sit-ins target fast food. The sit-in movement, a hallmark of nonviolent resistance, initially targeted segregated lunch counters and diners. However, as fast food chains like McDonald's expanded, activists adapted their strategies to challenge racial discrimination in drive-ins, which often refused service to black customers or relegated them to separate windows. Protests in Memphis, Greensboro, and Pine Bluff forced McDonald's franchisees to desegregate, demonstrating the power of consumer activism.
MLK's economic vision. In his final years, King increasingly emphasized economic empowerment, advocating for boycotts of discriminatory companies and the pooling of black economic power. His assassination in 1968, amidst a sanitation workers' strike, catalyzed a national conversation about "black capitalism" as a strategy to quell urban unrest and address the deep-seated economic disparities that legal desegregation had failed to resolve.
3. Black Capitalism Offered Opportunity but Also Exploitation in Fast Food
The notion that black liberation can come through black control of the means of production and access to consumption was not created in the late 1960s.
Post-uprising strategy. Following the Holy Week Uprising after MLK's assassination, McDonald's faced a crisis: white franchisees fled inner-city locations, leaving stores vulnerable. The company, recognizing the need for "translators" to rebuild trust, decided to actively recruit black franchisees. This move aligned with the burgeoning "black capitalism" movement, which posited that black business ownership could be the key to economic liberation and urban renewal.
Herman Petty's pioneering role. Herman Petty, a Chicago bus driver and barber, became McDonald's first black franchisee in 1968, taking over a dilapidated store in the Woodlawn neighborhood. His success, despite challenges like gang intimidation and a lack of capital, proved the viability of black-owned McDonald's. These "black stores" often grossed 25% more profit than their white counterparts, demonstrating the immense purchasing power of black consumers.
Nixon's endorsement. President Richard Nixon championed black capitalism, viewing it as a conservative solution to racial unrest that avoided more radical social reforms. Through initiatives like the Office of Minority Business Enterprise (OMBE) and Small Business Administration (SBA) loans, the federal government underwrote the expansion of fast food into black communities. However, this often meant:
- Black franchisees inheriting rundown stores.
- Reliance on white silent partners who sometimes exploited them.
- A focus on individual wealth rather than systemic community uplift.
4. Black Communities Actively Resisted Fast Food Encroachment, Forcing Adaptation
The black community will tell McDonald’s who’s qualified to run these things and who’s not.
Cleveland's "Burger Battle." McDonald's expansion into black communities was not always welcomed. In Cleveland, the murder of black franchise applicant Ernest Hilliard in 1969, believed to be linked to the McDonald's deal, sparked the Operation Black Unity (OBU) boycott. Led by Rabbi David Hill, OBU demanded black ownership of inner-city McDonald's and community profit-sharing, severely impacting sales and forcing McDonald's to negotiate.
Diverse forms of resistance. Across the nation, communities challenged fast food's presence on various grounds:
- Portland's Black Panthers: Boycotted McDonald's for refusing to support their free breakfast and medical clinic programs, accusing the chain of exploitative labor and police collaboration. A bombing at a McDonald's during this period highlighted the intense tensions.
- Philadelphia's Ogontz Neighbors Association (ONA): Fought against a new McDonald's, citing concerns about saturation, traffic, crime, and the erosion of community control over local development. They demanded mental health clinics or recreation centers instead.
- Atlanta's Dairy Queen: Julian Bond's interracial franchise venture faced protests for perceived "white control" and employee disputes, leading to the white partner's forced exit.
Fast food's pragmatic response. These conflicts forced fast food companies to adapt. McDonald's, for instance, learned to:
- Develop community relations protocols.
- Position black franchisees as peacekeepers and community liaisons.
- Partner with community development groups (like Cleveland's HADC) to facilitate black ownership.
- Recognize that "black power capitalism" prioritized black ownership and wealth building, even if it meant challenging corporate control.
5. Fast Food Companies Mastered the "Soul" of Marketing to Black Consumers
The word ‘soul’ means different things to different people. But to Black men and women, ‘soul’ means something very special. McDonald’s Restaurants recognize this, and more importantly they have done something about it.
Cultivating the "soul market." As black-owned "soul businesses" (like Mahalia Jackson's Glori-Fried Chicken) failed, major white-owned fast food chains stepped in, recognizing the lucrative "soul market." They invested heavily in targeted advertising and philanthropy to connect with black consumers, often filling gaps left by state neglect. This led to the rise of black advertising agencies like Burrell Communications and market research firms like ViewPoint, Inc.
"Positive realism" in advertising. Burrell Communications pioneered "positive realism," crafting ads that subtly countered racist stereotypes by depicting dignified black families and responsible black men. Slogans like "So get up and get away to McDonald's" resonated more than "You deserve a break today," acknowledging the realities of black life. Ads also addressed historical anxieties about dining out, promising no tipping or dress codes.
Franchisees as cultural ambassadors. Black franchisees became crucial cultural ambassadors, underwriting local initiatives and integrating black culture into the brand:
- "Soul of a Nation" (1976): A McDonald's-sponsored radio series and booklet celebrating black history, featuring figures like Benjamin Banneker and Crispus Attucks.
- Youth programs: Sponsoring Double Dutch leagues, high school bands, and providing scholarships.
- Crisis relief: Donating food during emergencies like the Altgeld Gardens chemical leak.
- King Holiday: McDonald's became a major sponsor of MLK Day commemorations, sanitizing his radical message while associating the brand with black pride.
Product development for black palates. Market research guided product development, though not always successfully. While the Filet-O-Fish was deemed "too white," the McChicken sandwich initially failed because black consumers expected "whole chicken on the bone," not a patty. This led to marketing efforts to "re-educate" black consumers on new ways to "love chicken," highlighting the industry's deep dive into black consumer psychology.
6. Franchising Became a Battleground for Civil Rights and Economic Equity
We are very concerned about what seems to be McDonald’s redlining in the Los Angeles area, and we are collecting information nationwide.
"Ghetto imprisonment" accusations. By the 1980s, black franchisees, despite their success, grew frustrated with perceived systemic discrimination. The Los Angeles NAACP, in 1984, protested McDonald's national operators' meeting, accusing the company of "redlining" black franchisees to economically depressed, high-crime, and high-cost inner-city locations, limiting their opportunities for expansion into more affluent white areas.
Lawsuits expose disparities. Two lawsuits by black franchisees, James T. Jones (1976) and Charles Griffis (1983), brought these issues to national attention. Griffis, a wealthy franchisee with two Rolls-Royces, claimed McDonald's prevented him from acquiring stores in white neighborhoods and sued for racial discrimination after McDonald's challenged his wife's investment in a competing Popeyes franchise. His lawyers framed McDonald's actions as an infringement on a black man's family and entrepreneurial freedom.
NAACP's "Fair Share" strategy. The NAACP, inspired by Jesse Jackson's Operation PUSH, shifted its focus to corporate accountability, demanding "Fair Share" agreements. These agreements sought:
- Increased black employment and promotion within corporations.
- More contracts for black manufacturers, suppliers, and advertising firms.
- A commitment to establish new black-owned restaurants.
- Reinvestment of profits into black communities.
McDonald's counter-narrative. McDonald's defended its practices by claiming it was "sensitive to black leaders' requests" to place black owners in black communities, framing it as a form of racial solidarity rather than discrimination. They also highlighted the "exceptional skill of black franchisees" in managing profitable inner-city stores, even as these stores faced higher operating costs and security challenges.
7. "Fair Share" Deals and Empowerment Zones Offered Illusory Solutions
We have our civil rights, now we’re fighting for our silver rights.
The rise of "silver rights." Jesse Jackson's Operation PUSH, through aggressive boycotts and negotiations, pioneered "silver rights" – the pursuit of economic justice through corporate engagement. Their successful 1982 boycott of Anheuser-Busch, for example, yielded millions in contracts for minority businesses, deposits in black banks, and increased minority employment. This model influenced the NAACP's approach to McDonald's, leading to a historic 1985 agreement promising 100 new black-owned restaurants and increased minority contracts.
Empowerment Zones and private sector reliance. In the 1990s, federal "Empowerment Zone" (EZ) programs, championed by President Bill Clinton, offered tax breaks and subsidies to businesses willing to invest in blighted urban areas. These initiatives, often managed by HUD, aimed to fight unemployment and business loss by engaging the private sector. Fast food chains, including Burger King and Wendy's, eagerly participated, receiving taxpayer subsidies for opening restaurants and employing local residents.
The illusion of transformation. While EZs and Fair Share deals created opportunities for individual black franchisees and corporate executives, their impact on broader community poverty and unemployment was "modest" at best. These programs often:
- Recycled old initiatives under new names.
- Prioritized business growth over fundamental social change.
- Funneled former welfare recipients into low-wage fast food jobs.
- Reinforced the idea that fast food could "save" communities, rather than addressing systemic issues.
La-Van Hawkins's cautionary tale. La-Van Hawkins, a charismatic franchisee, epitomized this era. He secured deals for hundreds of inner-city restaurants, promising jobs and community uplift. However, his ventures were plagued by financial mismanagement, lawsuits, and accusations of fraud, ultimately leaving behind broken promises and debts, highlighting the limits of relying on individual entrepreneurs to solve complex social problems.
8. The "Miracle of the Golden Arches" Masked Deeper Urban Realities
Our businesses [in Los Angeles] are owned by African-American entrepreneurs who hired African-American managers who hired African-American employees who served everybody in the community.
Post-LA riots narrative. Following the 1992 Los Angeles riots, McDonald's proudly proclaimed that its South Los Angeles restaurants were largely spared from the widespread destruction. This "Miracle of the Golden Arches" was attributed to the company's deep connection with black consumers and its black franchisees, who were seen as integral members of the community. This narrative became a powerful, yet convenient, truth that masked the underlying racial and economic tensions that fueled the unrest.
A convenient truth. While some black-owned McDonald's may have been protected by community members or employees, the "miracle" narrative served to:
- Vindicate McDonald's "enlightened social policies" of placing black franchisees in black communities.
- Shift focus from police brutality and systemic injustice to corporate social responsibility.
- Reinforce the idea that fast food was a trusted and essential institution in black neighborhoods.
- Obscure the fact that many other businesses, including other fast food chains, were heavily damaged.
Unanswered questions. The "miracle" narrative, widely disseminated in the press, allowed McDonald's to position itself as a leader in urban recovery without addressing the root causes of the riots:
- Persistent unemployment and poverty.
- Lack of access to quality housing and education.
- Racial discrimination and police misconduct.
- The proliferation of liquor stores and funeral homes, but not supermarkets.
The illusion of progress. The belief that more fast food franchises could solve complex urban problems persisted. Figures like Magic Johnson, through his enterprises, promised "retail justice" by bringing businesses to underserved communities. However, critics argued that these ventures, often funded by Empowerment Zones, offered temporary jobs and limited choices, rather than addressing the fundamental need for "real justice" and meaningful, long-term employment.
9. Fast Food's Entanglement with Black America Revealed Systemic Failures
No one expects the restaurant industry to pioneer an economic renaissance of our inner cities. After all, only so many service businesses can hope to exist in locales where disposable income so often consists of welfare checks, food stamps and the limited rewards of dead-end jobs.
The limits of "black empowerment." The decades-long effort to use fast food franchising as a tool for black economic empowerment, from black capitalism to Empowerment Zones, ultimately revealed the limitations of market-based solutions to systemic problems. While individual black franchisees achieved success and contributed to their communities, the broader impact on poverty, health disparities, and unemployment remained negligible.
The cost of convenience. Fast food filled a critical void in black communities, offering affordable and accessible meals in areas often devoid of other commercial options. However, this convenience came at a cost:
- Health crisis: The proliferation of fast food contributed to disproportionately high rates of obesity, diabetes, and hypertension among black Americans.
- Low-wage jobs: Fast food jobs, often filled by former welfare recipients, offered low wages, inconsistent scheduling, and limited opportunities for advancement, perpetuating cycles of poverty.
- Capital flight: Despite local profits, a significant portion of revenue from fast food franchises flowed out of black communities to corporate headquarters and suppliers.
The "black-owned" paradox. The emphasis on "black-owned" fast food, while fostering pride and solidarity, often obscured the complex web of white financial interests, corporate control, and federal subsidies that underpinned the industry. This made it difficult for consumers to truly "buy black" or for communities to exert genuine control over these businesses.
10. The Fight for Food Justice is "Bigger than a Hamburger"
In matters of race and capitalism, Baker argued, the struggle is “something much bigger than a hamburger.”
Beyond individual choices. The contemporary health crisis in black America, often attributed to "bad choices," is a direct consequence of historical and structural forces. The pervasive presence of fast food in black communities is not accidental but a result of deliberate government policies and corporate strategies that capitalized on racial unrest and economic vulnerability. Focusing solely on individual dietary choices ignores the systemic indifference to black hunger for everything from nutritious food to well-compensated jobs and racial justice.
Disaster capitalism in action. The fast food industry's expansion into black communities exemplifies "disaster capitalism," exploiting moments of crisis (urban uprisings, deindustrialization) to implement market-based solutions that benefit corporations while further eroding public services and community self-sufficiency. This process has blurred the lines between corporate benevolence and state responsibility, making fast food seem like a solution rather than a symptom of deeper problems.
A holistic approach to food justice. To truly address food disparities, movements must:
- Interrogate racial capitalism: Understand how racism and capitalism are intertwined to create unequal food environments.
- Challenge romanticized pasts: Avoid nostalgic views of a healthier past that blame black women for cooking habits or ignore historical food insecurity.
- Demand systemic change: Advocate for well-paying jobs, diverse food options, and safe community spaces, rather than relying on fast food as a substitute for public investment.
- Empower communities: Support local, community-led initiatives that prioritize nourishment and self-determination over corporate profits.
Ella Baker's enduring wisdom. As activist Ella Baker wisely noted, the struggle for justice is "something much bigger than a hamburger." It encompasses the fight for dignity, equity, and the fundamental right of communities to shape their own destinies, free from the constraints of systemic racism and exploitative capitalism.
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