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Did you know that 43 out of 55 McDonald’s outlets in Delhi are SHUTTING DOWN?

McDonald's outlets in Delhi are shutting down (Pic Courtesy: IBTimes India)

We bet many of you are a regular at your nearest McDonald’s outlet, but don’t be shocked if you find it closed today. In a shocking and unprecedented move, around 43 out of the 55 McDonald’s outlets in Delhi are shutting down as soon as today. Why? Because of the infighting between US Connaught Plaza Restaurants Private Ltd (CPRL) and McDonald’s.

Well, CPRL is 50:50 local joint venture between Vikram Bakshi and McDonald’s, which is headquartered in US, that operates the fast food chain in north and east India. According to a report in Economic Times, former Managing Director of CPRL Vikram Bakshi said –

‘It’s unfortunate, but operation of 43 restaurants operated by CPRL has been temporarily suspended.’

While joint venture did not share any reasons, the report said that CPRL failed to get the mandatory regulatory health licenses renewed. And the decision to shut down the outlets was taken during a board meeting via Skype on Wednesday.

It’s being reported that around 1700 employees jobless, but McDonald’s India Pvt Ltd denied it, and said –

‘We understand that CPRL is retaining the employees of affected restaurants and will pay them their salary during the period of suspension.’

According to a report in ScoopWhoop, McDonald’s India Pvt Ltd said –

‘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.’

Bakshi was removed from CPRL in August 2013 and ever since he has been in a legal battle with the US fast food brand. He was responsible for dragging McDonald’s to Company Law Board, but the verdict is still pending.

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