43 out of 55 McDonald’s outlets to shut down in Delhi; McDonald’s claims jobs safe

If you stay in Delhi and have a craving for a McDonald's meal, you’ll possibly face a tough time because as many as 43 outlets of the fast-food chain are shutting down.

Yes, the infighting between Connaught Plaza Restaurants (CPRL) and McDonald’s took an ugly turn as a result of which the CPRL board decided to shut out the outlets.

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

"It's unfortunate, but operation of 43 restaurants operated by CPRL has been temporarily suspended,” Vikram Bakshi, former managing director of CPRL, which operates 168 restaurants, told ET.

ET quoted sources as saying the CPRL failed to get the mandatory regulatory health licences renewed because of the infighting between Bakshi and McDonald's. The move, they point out, will render over 1,700 employees 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 told ET that unless McDonald's sorts out its legal battle, things might worsen. "Every passing day is a slur on the front-end brand,” he said, adding that there is nothing really bigger than the brand.

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

The fast-food joint stated India continues to be an important market for McDonald’s and "we are committed to working with CPRL to resolve the issue as soon as possible."


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