In a setback to the US-based fast food chain McDonalds, 43 of the total 55 outlets will be shut in Delhi from today, on failure to renew eating house licenses by its North and East India licensee Connaught Plaza Restaurants Pvt Ltd (CPRL).
The CPRL is the local joint venture between Vikram Bakshi and McDonalds. When contacted, McDonalds said “the eating house licenses of a number of McDonalds restaurants in Delhi have expired”.
Since last two years, Vikram Bakshi and McDonalds are at loggerheads over the control of CPRL and arbitration proceeding is being pursued by the food chain at the London Court of International Arbitration.
Without specifying a number, a highly placed source told PTI that more outlets in the Capital could be shut as a result of expired licences.
“The Board of CPRL is working to obtain the required licenses. Pending this, CPRL is temporarily suspending the operations of the affected restaurants,” McDonalds India Pvt Ltd (MIPL) spokesperson Barry Sum said.
When asked about the possible job losses due to closure, Sum said the rumour about “employees becoming jobless is erroneous.”
“We understand that CPRL is retaining the employees of affected restaurants and will pay them their salary during the period of suspension,” he added.