Making fast-food burgers for on-the-go consumers has a bigger impact on the U.S. economy than you'd think.
McDonald’s has a $73.3 billion impact on the U.S. economy, according to a study by Oxford Economics. It also supports 1 million jobs, according to the study, including 740,000 workers inside the chain’s domestic restaurants.
It’s the second straight year that the fast-food giant commissioned such a study, which also examines the impact the company has in cities around the country.
In Louisville, Kentucky, for instance, McDonald’s has a $210 million impact on the local economy, fueling $47 million in tax revenue and supporting 3,100 jobs.
McDonald’s impact is much bigger in its home city of Chicago, where the company supports 30,200 jobs and contributes $4.3 billion to the local gross domestic product. It also generates $192 million in tax revenue.
The company has an $8.3 billion impact on the California economy and a $1.2 billion impact on the Minnesota economy.
The company in recent years has taken more deliberative steps to remind people, and particularly lawmakers, about its impact on the broader economy.
McDonald’s commissioned the study after facing several regulatory issues in various states and in the country, on issues such as wages in California or regulations on whether the company should be labeled a “joint employer” of its franchisees’ workers.
One of the most visible parts of this effort involves what McDonald’s calls “the 1 in 8,” referring to the one out of eight Americans who worked in one of the chain’s restaurants at some point in their lives.
McDonald’s website on its economic impact features links people can use to contact their local representative. People can also see the impact that the chain has on state and some local economies.
McDonald’s total economic impact includes a $34.1 billion direct impact on the U.S. gross domestic product, according to the study. The rest of the company’s impact comes from indirect means, such as its support for the supply chain that produces beef or potatoes or other ingredients.
The company buys $5.9 billion worth of ingredients every year, including 671 million pounds of beef, 130 million pounds of cheese, 2.8 billion pounds of potatoes and 2.1 billion eggs.
McDonald’s also noted that it supports nearly $20 billion in tax revenue nationwide.
And many of its franchisees started at the bottom. One out of five McDonald’s franchisees started out as crew members.
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