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McDonald’s stores to shut down in North, East; thousands of jobs at risk

By Newsd
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McDonalds India announced that it had terminated its franchise agreement with Vikram Bakshi’s Connaught Plaza Restaurants on Monday. As a result, 169 restaurants operated by the latter will have to shut down and stop using McDonald’s brand name within 15 days.

The company runs McDonald’s outlets in northern and eastern India. Now, McDonald’s India is looking out for a new partner.

“Today we have issued the CPRL board a notice of termination of the franchise agreements for 169 McDonald’s restaurants operated by CPRL in North and East India. This includes all restaurants impacted by the recent failure to renew the Eating House Licenses,” McDonald’s India said in a statement. Recently, the company had temporarily suspended operations of over 40 of its restaurants in Delhi.

“As a result, CPRL is required to cease using the McDonald’s system (including proprietary rights in McDonald’s names, trademarks, designs, branding, operational and marketing practice and policies and food recipes) and its associated intellectual property in relation to these restaurants within 15 days of the termination notice,” it said.

MIPL said it was compelled to take this step as CPRL had significantly breached the terms of the franchise agreements. McDonald’s India also said that the company will try and lessen impact on the employees working in these restaurants.

“We understand that this action brings uncertainty for many. As we proceed to exercise our legal and contractual rights consequent on termination, a priority will be to mitigate impact on affected parties such as employees, suppliers and landlords and we are open to working with CPRL to achieve this,” the statement added.

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