Slumpingsales and consumer-led boycott confront McDonald's
In an unprecedented move, The People's Union USA has organised a weeklong boycott against fast-food giant McDonald's, starting from the first week of April 2025. The boycott is in response to concerns over the company's tax practices, labour issues, and environmental impact.
The boycott comes at a challenging time for McDonald's, as the company grapples with declining sales. According to recent reports, U.S. sales for the first quarter of 2025 dropped by 3.6%, and foot traffic at McDonald's restaurants fell by 2.6%. These figures, sourced from Placer.ai, highlight a concerning trend for the global fast-food chain.
The concerns raised by The People's Union USA are not new. John Schwarz, the organisation's founder, has accused McDonald's of "price gouging" despite record profits, and of supporting political causes that allegedly undermine values of diversity, equity, and inclusion, while promoting them publicly.
Schwarz also claims that McDonald's supply chains are linked to deforestation and poor labor conditions. These accusations, if proven, could further damage the company's reputation.
In addition, McDonald's has faced criticism over its tax practices. Schwarz has accused the company of paying less in taxes than its own employees due to offshore loopholes. This assertion, if substantiated, could fuel the ongoing boycott and potentially lead to further political and consumer backlash.
The boycott against McDonald's is part of a larger trend of consumers wielding their wallets in protest. Companies whose positions clash with personal views are seeing a decrease in brand loyalty, as indicated by a recent survey by CLYDE/Ipsos. The survey found that 53% of Americans are less likely to support companies whose positions clash with their personal views.
McDonald's is not the only corporation facing such politically charged boycotts. The People's Union USA has also launched similar boycotts against Amazon, Walmart, and Target in 2025.
In response to the sales decline, McDonald's CEO Chris Kempczinski attributed the drop to macroeconomic uncertainty, inflation, geopolitical tensions, and shaken consumer confidence. However, the ongoing boycott and the concerns raised by The People's Union USA could further exacerbate these issues.
The boycott against McDonald's is a significant development in the ongoing discourse around corporate responsibility and consumer activism. As consumers become more aware and vocal about the issues they care about, companies like McDonald's will need to work harder to repair trust with their customers.
In the wake of the boycott, McDonald's faces a critical juncture. The company will need to address the concerns raised by The People's Union USA and the broader public if it hopes to regain the trust of its customers and reverse the current sales decline.
