McDonald’s India has ended the its franchise agreement in 169 fas-food branches in north and east India that was handled by Connaught Plaza Restaurant Ltd (CPRL) and also mentioned about no usage of any these outlets for any operations. CPRL is driven by Vikram Bakshi, the estranged accessory of the US-based food joint.
The decision comes weeks after 43 outlets continue running by CPRL in the national capital were shut due to non-restoration of eating house licenses by local authorities.
Ron Christianson who is a Global Head of Corporate Relations, Foundational Markets, McDonald’s Corporation, said in an interview to Businessline that: “The termination is a completely separate matter. The termination is a result of CPRL’s violation of certain essential obligations and terms of the franchise agreement. More specifically, it is due to the default in payment of royalty to MIPL for approximately two years.”
He also stated that, “It is a lengthy process but we are committed to the market. We want to rebuild a stronger McDonald’s.”
With its termination, there are thousands of employees whose jobs are at stake. The move has put the eventual fate of these eateries and its representatives under a billow of vulnerability. Only two months back, CPRL was compelled to close down 43 eateries in Delhi in the wake of neglecting to restore the eating house licenses for them. MIPL, has however said it is interested in working with CPRL to lessen the impact faced by employees and suppliers.
Christianson also mentioned about rebuilding the brand by saying,“We are in the initial stages of finding a Development Licensee partner for North and East India, and we will also fully committed to the opportunity in North and East India, and will take necessary steps to rebuild the brand.”
