Hey McD fans living in Delhi, sorry we gotta a bad news for you. US favorite fast food chain, McDonald’s has decided to shut down 43 out of the existing 55 McDonald’s outlet in Delhi.
The unexpected move to shut McDonald’s is because of the infighting between CPRL (Connaught Plaza Restaurants) and US-headquartered McDonald’s.
“It’s unfortunate, but operation of 43 restaurants operated by CPRL has been temporarily suspended,” said Vikram Bakshi, former managing director of CPRL, which operates 168 restaurants. Vikram Bakshi declined to share reasons for closure, but it is reported that the CPRL failed to get the mandatory regulatory health licenses renewed because of the infighting between Bakshi and McDonald’s.
According to the Times of India, McDonald’s India and Vikram Bakshi are 50:50 partners in Connaught Plaza Restaurants.
This runs the fast food chain in the north and eastern parts of the country. The two fell out when CPRL did not reappoint him as MD in August 2013. Bakshi had subsequently moved CLB challenging his ouster, McDonald’s moved for international arbitration in September 2013. Bakshi got a stay from arbitration proceedings from the Delhi High Court. Even an appeal to the Supreme Court was dismissed, but now the board of directors has decided to shut down 43 out of 55 outlets in Delhi.
The temporary suspension is due to the expiration of the Eating House Licenses of specific restaurants, and will render over 1,700 employees jobless.
According to the Times of India, McDonald’s clarified that the CPRL would retain the employees at these outlets and pay their salaries even while the restaurants were not functioning.