Home Business McDonald’s creates new ‘vice president of operator diversity’ position – Business Insider

McDonald’s creates new ‘vice president of operator diversity’ position – Business Insider

by admin2 admin2
17 views
McDonald’s creates new ‘vice president of operator diversity’ position – Business Insider

This story requires our BI Prime membership. To read the full article,

simply click here to claim your deal and get access to all exclusive Business Insider PRIME content.

McDonald’s announced on Wednesday that it was creating a new role focused on franchisee diversity, according to leaked internal documents viewed by Business Insider.Bill Lowery will be promoted to the newly created role of vice president of operator diversity and ombudsman, according to an internal memo from McDonald’s US President Joe Erlinger. The creation of the role follows pushback from minority franchisees, with Business Insider publishing an investigation into the difficulties faced by black operators at McDonald’s on Monday. Read Business Insider’s full investigation into the disparities between McDonald’s black franchisees and their white counterparts here.Sign up for Business Insider’s retail newsletter, The Drive-Thru, to get more stories like this in your inbox.Visit Business Insider’s homepage for more stories.McDonald’s has created a new role centered on diversity among its 1,700 franchisees in the US. On Wednesday, the company announced that Bill Lowery — who has been serving as McDonald’s ombudsman — will be promoted to the newly created role of vice president of operator diversity and ombudsman, reporting directly to Joe Erlinger, the president of McDonald’s US business. Erlinger said in an internal memo viewed by Business Insider that the promotion was in response to hearing that “we need additional resources in Franchising.””In this role, Bill will act as the liaison between owner/operator diversity groups and the McDonald’s US Leadership team, driving synergy between owner/operator needs and the US business strategy,” Erlinger wrote. “This is especially important in helping me keep a pulse on the US system.” According to the memo, Lowery “will create several critical roles to support this important work.” He will also continue his work resolving conflicts in his role as ombudsman. McDonald’s confirmed the promotion and declined to comment further.McDonald’s has faced pushback from minority franchisees in recent yearsFranchisees, including members of the National Black McDonald’s Owners Association (NBMOA), have pushed back against disparities at the fast-food giant in recent years. On Monday, Business Insider published an investigation highlighting franchisees’ concerns. NBMOA documents show that in 2012, black franchisees’ cash flow was, on average, $24,600 lower per month than the average cash flow of all McDonald’s restaurants. In 2017, the cash-flow gap had grown to about $60,600, according to NBMOA documents. Business Insider was unable to obtain official updated figures for 2018 or 2019, but two franchisees said the gap has since grown to about $68,000.Franchisees said they were concerned that the number of black franchisees was shrinking, going from 261 at the end of 2014 to fewer than 200 today. Overall franchisee count also shrank during the same period, going from 2,100 to about 1,700, according to franchisee groups’ internal documents.Franchisees have been demanding that McDonald’s take action.”These things are not things that have happened just yesterday,” Ken Manning, a black former McDonald’s franchisee who sold his locations in 2017, told Business Insider.”These things are historical in a lot of cases,” Manning said. “When we meet every four, five, six times a year on this issue, and you meet year over year and nothing ever changes, then that becomes the definition of insanity — doing the same thing over and over and over. And you see no change or very little change.”McDonald’s said in a statement to Business Insider in November that it “is among our top priorities that all McDonald’s franchises in all communities have the opportunity to prosper, grow and achieve their business ambitions.”It added: “These efforts are rooted in our core belief that diversity and a vibrant, inclusive, and respectful McDonald’s makes us stronger. McDonald’s is proud to create opportunities for entrepreneurship, economic growth, and mobility in communities across the country.”Since Chris Kempczinski replaced Steve Easterbrook as the CEO of McDonald’s in a shocking executive shake-up in November, the company’s leadership team has been internally emphasizing the importance of diversity and corporate ethics.On Monday, McDonald’s announced that the company elected WNBA Commissioner Cathy Engelbert to its board of directors, a move that Chairman Enrique Hernandez Jr. said underscored the company’s “commitment to diversity at all levels.” McDonald’s insiders said Kempczinski has spent his first month on the job pushing a renewed emphasis on corporate values, speaking internally on the importance of doing “the right thing each and every day.”If you’re a McDonald’s employee or franchisee with a story to share, reach out at ktaylor@businessinsider.com or on the Signal app at +1 646-768-4740. I’m also available via Twitter DM at @Kate_H_Taylor or on the phone at 646-768-4740 — no PR pitches, please.Read more: McDonald’s black franchisees are fighting to earn as much as their white counterparts, as dozens leave the company they once considered familyThe inside story of how McDonald’s ex-CEO’s push to modernize the chain left black franchisees behindMcDonald’s new CEO is tackling the fast-food giant’s reputation problem from the inside McDonald’s franchisees’ leaked memos reveal what they actually think about a controversial exec’s unexpected promotion to CEO

More:

BI Prime
Diversity
Retail
McDonald’s

Chevron iconIt indicates an expandable section or menu, or sometimes previous / next navigation options.

You may also like

Leave a Comment