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McDonald’s to shut down 43 of its 55 outlets in Delhi

By Newsd
Updated on :
McDonald’s buys out Vikram Bakshi, temporarily shuts 165 outlets in India
Image: Indiamarks

In a sad news for its customers, food chain McDonald’s is shutting down 43 of its outlets in the national capital.

The move comes after the infighting between Connaught Plaza Restaurants (CPRL) and McDonald’s took an ugly turn, resulting in the closure of the outlets.

CPRL is a 50-50 local joint venture between Vikram Bakshi and McDonald’s that operates the fast food chain in the north and east India.

“It’s unfortunate, but the operation of 43 restaurants operated by CPRL has been temporarily suspended,” Vikram Bakshi, former managing director of CPRL, said. CPRL operates 168 restaurants.

According to sources, the CPRL failed to get the mandatory regulatory health licences renewed because of the infighting between Bakshi and McDonald’s. The move has affected 1,700 employees and left them jobless. However, a McDonald’s statement said, “We understand that CPRL is retaining the employees of affected restaurants and will pay them their salary during the period of suspension.”

Brand strategist, Harish Bijoor, said that unless McDonald’s sorts out its legal fight, things may turn worse. “Every passing day is a slur on the front-end brand,” he said, adding that there is nothing really bigger than the brand.

In a statement, McDonald’s said it is committed to ensuring that the restaurants are operating in full compliance with McDonald’s standards and regulations.

“The Eating House Licenses of a number of McDonald’s restaurants in Delhi have expired. The Board of Connaught Plaza Restaurants Private Limited is working to obtain the required licenses. Pending this, CPRL is temporarily suspending the operations of the affected restaurants,” the statement read.

We apologise for the inconvenience this has caused. Our greatest concern is always for our customers and employees, and we are committed to doing what it takes to ensure compliance, the statement added.

McDonald’s added that “we are committed to working with CPRL to resolve the issue as soon as possible”, as it believes that India is a large market.