McDonald’s has officially left the U.S. National Restaurant Association, citing disagreements over employee wage policies, according to Bloomberg. The move highlights ongoing tensions within the restaurant industry regarding labor standards and wage models.
During a briefing with Wall Street analysts, Stifel Financial Corp analyst Chris O’Cull flagged McDonald’s departure in a client note, noting its significance given the chain’s status as one of the largest and most influential members of the trade group. The National Restaurant Association represents thousands of restaurants across the country and has historically lobbied on behalf of industry interests at both the state and federal levels.
At the heart of the dispute is McDonald’s opposition to the tipped wage model, a system supported by the association that allows businesses to count tips toward meeting legal minimum wage requirements. Under this model, employers are required to make up any shortfall if tips do not bring an employee’s earnings up to the federally mandated minimum. McDonald’s has publicly opposed this approach, arguing for more standardized wage structures that do not rely on gratuities.
Efforts to reach the National Restaurant Association for comment on McDonald’s exit have so far been unsuccessful, and the fast-food giant itself declined to comment directly. The departure is considered a significant setback for the association, which has advocated for policies seen as favorable to the restaurant sector. This includes tax measures embedded in President Donald Trump’s spending bill, such as the “no tax on tips” provision, which exempts certain gratuities from taxation. While McDonald’s CEO Chris Kempczinski has expressed support for this provision, noting it does not directly impact McDonald’s employees since they do not receive tips, the company’s stance on broader wage policy has remained firm.
The association has also historically opposed regulations that could expand the liability of chains for labor violations committed by franchisees, a critical issue for McDonald’s, where the majority of U.S. locations are operated by franchisees. Kempczinski has confirmed that the company has engaged in discussions with federal authorities regarding minimum wage policy, signaling an ongoing interest in shaping labor regulations that affect its operations.
Financially, McDonald’s continues to perform strongly. In the second quarter of 2025, the company reported net income of $2.25 billion, up 11% compared with the same period last year, reflecting sustained growth despite labor disputes and broader industry challenges.
The split between McDonald’s and the National Restaurant Association underscores the tension between corporate giants and trade groups, particularly when it comes to balancing employee compensation models with regulatory compliance and lobbying efforts. For McDonald’s, the decision reflects a broader strategy to assert independence on wage policy while continuing to advocate for measures that support the chain’s operational structure and profitability.
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