Mcdonald’s Delhi Outlet to Shut down
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 Thursday.
“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.
Bakshi is still on the CPRL board along with his wife. McDonald’s has two representatives on the CPRL board. The decision to close down the outlets was taken during a board meeting via Skype on Wednesday morning.
While the estranged joint venture partner declined to share reasons for closure, highly-placed sources disclosed that 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.
Source: TOI