169 outlets of McDonald’s in North and East India shut down for now

The Hush Post|12:00 am|1-min-read

After six years of long legal dispute with former Indian partner Vikram Bakshi, McDonald’s has finally reached a settlement to take over the 50:50 joint venture in Connaught Plaza Restaurants Pvt Ltd (CPRL). So, McDonald’s has decided to temporarily shut down 169 of its outlets in north and east India as it had broken the terms of their franchise agreements including the payment of royalties.

However, the outlets in these regions are expected to be closed for a week or two as McDonald’s takes stock. It will also conduct a comprehensive assessment of operational protocols and employee training. Reportedly, the existing managers and staff of these restaurants will remain in the company’s employment during this temporary closure. They will also be actively involved in steps taken to re-open the restaurants.

The Head of CPRL, Hunghanfoo said, “Our top priority is to deliver the highest quality restaurant experience to our customers. While we are confident this will result in the best possible experience for our customers. We sincerely regret any inconvenience the temporary restaurant closures may cause”.

While the terms of the deal, including the settlement of the contentious $330 million claim by CPRL, were not disclosed.

The CPRL started in 1995 when Bakshi and McDonald’s formed a 50:50 joint venture to run McDonald’s outlets in India for a period of 25 years. But in 2008, Chicago-headquartered company tried to buy out Bakshi’s stake. Five years later, State of affairs worsened, when Bakshi was removed as the Managing Director of CPRL.

The out of court settlement marks the end of the uncertainty for the staff at these McDonald’s outlets. It is also a good news for consumers of the Big Mac burgers.

 

 

 

 

 

 

 

 

 

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