Hotline: 1800 102 2007
X
Search Business Opportunities
Jul, 07 2017

43 McDonald's outlets operated without valid health licence since April, says Vikram Bakshi

Last month, McDonald's had decided to shut down 43 of the total 55 outlets here due to failure to renew eating house licences.

American burger chain, McDonald's 43 outlets in the national capital operated for nearly three months from April 1 without valid health licences from local authorities, its estranged India partner, Vikram Bakshi said.

Last month, McDonald's had decided to shut down 43 of the total 55 outlets here due to failure to renew eating house licences.

Bakshi, an equal joint venture partner of McDonald's India Pvt Ltd (MIPL) in Connaught Plaza Restaurants Ltd (CPRL) that is the licensee for North and East India regions of the fast food chain, said licences had expired on March 31.

Bakshi told PTI, "From April 1 to June 27, 2017, we did not have any health licence, it's absolutely correct."

He has been at loggerheads with McDonald's since 2013, when he was removed as the managing director of CPRL, and is contesting it at legal forums including London Court of Arbitration.

Bakshi said, "The health licence was necessary to be obtained from local municipal bodies to run the restaurants for water hygiene and proper maintenance of food, among others."

Barry Sum, Director, Corporate Relations, Asia Foundational Markets, McDonald's, declined to comment on the issue.

He said, "We want to focus our efforts on resolving the issues as soon as possible at this moment."

The closed outlets are unlikely to open anytime soon as Bakshi has refused to sign the licensing documents. To renew it, the JV partner and an MIPL-nominated director have to co- sign licence renewal applications.

Bakshi said, "In early March before the licences were to go for renewal, I have clearly stated that because of issues of the food safety and because of us not being actually providing quality and safe food to the customers, I no longer intend to sign (to apply for renewal of) the licences."

Sum said, "The current situation is the result of our former JV partner's refusal to co-sign the licence renewal applications with an MIPL-nominated director, which were the protocols previously approved by the CPRL board."

He said, "The restaurants will re-open when the required licences have been obtained."

He further added, "MIPL still intends to look for a constructive resolution to the situation so that the impact on stakeholders will be mitigated. This will require the appointment of someone from CPRL other than the directors."

Bakshi said, "I have been constantly writing to McDonald's board and the CEO of the company since 2014 about various issues right up to having served a fried lizard in Kolkata."

Comment
image
Related opportunities
  • Ice creams & Yogurt Parlors
    About Us: Nirula's is India's oldest fast food restaurant chain. Based..
    Locations looking for expansion Delhi
    Establishment year 1950
    Franchising Launch Date 2017
    Investment size Rs. 20lac - 30lac
    Space required 300
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
  • Furniture/Home Decor & Furnishing
    About Us: Founded in 2016, Fanusta.com is a curated marketplace of..
    Locations looking for expansion Rajasthan
    Establishment year 2016
    Franchising Launch Date 2016
    Investment size Rs. 20lac - 30lac
    Space required 500
    Franchise Outlets Less than 10
    Franchise Type Unit
    Headquater Jaipur Rajasthan
  • Robotics & Technical Training
    About Us : We would like to introduce ourselves as an..
    Locations looking for expansion Maharashtra
    Establishment year 2013
    Franchising Launch Date 2018
    Investment size Rs. 20lac - 30lac
    Space required 1000
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Mumbai Maharashtra
  • Bags & luggage
    About Us: Legendary Sports Retail Brand of India NIVIA is a true..
    Locations looking for expansion Punjab
    Establishment year 2017
    Franchising Launch Date 2018
    Investment size Rs. 30lac - 50lac
    Space required 500
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Panchkula Punjab
Insta-Subscribe to
The Franchising World
Magazine
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities