But the taste of Mc Donalds will soon fade away from the palates of people residing in Delhi as the sudden shutting down of its 43 out 55 outlets in the state capital has come as a shock to all the Mc Donald's lovers. Media reports said on Thursday that the global fast food chain's North Indian franchisee Connaught Plaza Restaurants Limited (CPRL) has chose to shut down 43 of the total 55 McDonald's outlets across the national capital. The CPRL is registered as a joint venture business entity, with an agreement between Vikram Bakshi and McDonald's.
"The Eating House Licences of a number of McDonald's restaurants in Delhi have expired. Pending this, CPRL is temporarily suspending the operations of the affected restaurants", McDonald's India Pvt Ltd (MIPL) spokesperson Barry Sum said. The decision of shutting down of McDonald's 43 restaurants in Delhi was taken by CRPL during a board meeting held via Skype on Wednesday morning.
Last year, the Supreme Court had dismissed an appeal filed by Vikram Bakshi which allowed the US-based burger chain to pursue arbitration in the matter at the London Court of International Arbitration.
A Times of India report claimed that the shutdown will result in a loss of 1,700 jobs.
The decision follows a long-running legal dispute between Connaught Plaza Restaurants Private Limited (CPRL), an Indian franchisee firm that runs the restaurants in Delhi, and McDonald's, according to local media reports.
"It's our understanding that CPRL has notified the key affected stakeholders including employees, landlords and suppliers before the temporary suspension started on June 28", the statement added. Ltd (HRPL), owns the master rights for the west and south India operations of McDonald's and runs 242 restaurants. Bakshi had accused Hardcastle Restaurants as well, which is a company that runs the operations in the west and southern part of the country, of influencing the USA fast food chain "to take oppressive steps" against him.
With falling revenues and sales, Domino's in 2013 replaced McDonald's as the largest quick-service restaurant (QSR) chain in the country.
Brand strategist Harish Bijoor told ET that unless McDonald's sorts out its legal battle, things might worsen.