McDonald’s To Shut Down 169 outlets in India

McDonald's Shut down 169 Franchise Outlets in India McDonald’s India Pvt. Ltd (MIPL), the local unit of the American fast food chain, on Monday terminated its franchise agreement with Connaught Plaza Restaurants Pvt. Ltd (CPRL), which runs McDonald’s outlets in north and east India, and is now looking for a new partner. Fast food chain McDonald's said on Monday it planned to shut all 169 of its restaurants in India's northern and eastern regions, escalating a dispute with its local partner and potentially putting thousands of workers out of jobs. CPRL is a joint venture between MIPL and Vikram Bakshi, who is managing director of CPRL. McDonald’s cited “default in the payment of royalties by CPRL” as the primary reason for termination. "They fell out because McDonald’s thought that Mr Bakshi was involved in irregular siphoning activities, so they wanted him to go," said AS Chandiok, a lawyer representing Bakshi, who added that his client denied the allegations. McDonald's operates a total of around 430outlets in India through CPRL and Hardcastle Restaurants, the company's franchise in the south and west. The company said it is looking for a new partner to replace CPRL. "We understand that this action brings uncertainty for many," McDonald's India said in an email. "It will take time to bring the current situation to a final resolution." The decision will likely lead to thousands of job losses and further dent McDonald's share of India's booming quick service restaurants market, where it has already been losing ground to rivals like Domino's Pizza. McDonald's Shut down 169 Franchise Outlets in India. The north and east Indian outlets under the McDonalds-CPRL franchise employ 6,500 people directly and many more indirectly, said Madhurima Bakshi, a member of CPRL's board. “It is a lengthy process but we are committed to the market. We want to rebuild a stronger McDonald’s,” Christianson said.