Hotline: 1800 102 2007
X
Search Business Opportunities
Jun, 30 2017

​McDonald's shuts 43 outlets in Delhi

Vikram Bakshi, Former Managing Director, CPRL, "It's unfortunate, but operation of 43 restaurants operated by CPRL has been temporarily suspended."

In an unprecedented move, the infighting between Connaught Plaza Restaurants (CPRL), the 50:50 local joint venture between Vikram Bakshi and the US-headquartered McDonald’s that operates the fast food chain in north and east India, and the global burger giant took an ugly turn with the CPRL board deciding to shut down 43 out of 55 restaurants in Delhi from 29 June.

In a statement, the Indian arm of the US-based burger chain confirmed that "the eating house licenses of a number of McDonald’s restaurants in Delhi have expired."

It added that CPRL is working to obtain the required licenses.

Vikram Bakshi, Former Managing Director, CPRL, "It's unfortunate, but operation of 43 restaurants operated by CPRL has been temporarily suspended."

The closure of the restaurants comes against the backdrop of a legal battle between Bakshi and McDonald’s.

In 2013, McDonald’s voted against the re-election of Bakshi as the managing director of CPRL, following which Bakshi challenged his removal in the Company Law Board (CLB), accusing McDonald’s of mismanagement and oppression.

Later in 2013, McDonald’s had revoked the JV agreement and invoked arbitration.

McDonald’s has been pursuing arbitration against Bakshi in the London Court of International Arbitration.

McDonald's India said, "While there are on-going legal disputes, suspending the operations of the restaurants is a collective decision of the CPRL Board of Directors."

Brand strategist Harish Bijoor contends that unless McDonald’s sorts out its legal battle, things might worsen.

"Every passing day is a slur on the frontend brand," he says, adding that there is nothing really bigger than the brand.

McDonald’s operations in west and south India have not been affected. In those markets, its master franchisee rights are owned by a separate company Westlife Development, through its subsidiary Hardcastle Restaurants.

Comment
Related opportunities
  • Ayurvedic, Herbal & Organic Products
    About Company:Bio Veda Action Research company formerly known as Biotique..
    Locations looking for expansion New Delhi
    Establishment year 1992
    Franchising Launch Date 2015
    Investment size Rs. 10lac - 20lac
    Space required 200 – 500 sq. ft.
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New Delhi New Delhi
  • Quick Service Restaurants
    About Us: This quintessential restaurant will transport you to a European..
    Locations looking for expansion Andhra pradesh
    Establishment year 2008
    Franchising Launch Date 2018
    Investment size Rs. 10lac - 20lac
    Space required 400
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Shaikpet Andhra pradesh
  • Casual dine Restaurants
    About: Established in 2009, Roti Aur Boti is a concept-based QSR..
    Locations looking for expansion Delhi
    Establishment year 2009
    Franchising Launch Date 2018
    Investment size Rs. 50lac - 1 Cr.
    Space required 200
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
  • Quick Service Restaurants
    About Us: The only nationalised Chinese wok Quick Service Restaurant (QSR)..
    Locations looking for expansion Delhi
    Establishment year 2017
    Franchising Launch Date 2018
    Investment size Rs. 10lac - 20lac
    Space required -NA-
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
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