McDonald’s forced to shut down 43 outlets across capital
Temporary closures due to failure to renew eating house licenses
Hungry fast-food lovers in the capital may have to opt for KFC or a plate of vada next time they feel like a Big Mac.
Forty-three of the city’s 55 McDonald’s restaurant outlets are being temporarily shut down due to North and East India licensee Connaught Plaza Restaurants Pvt Ltd’s failure to renew their eating house licenses, according to media reports.
Around 1,700 employees will be affected by the move.
PTI reported that over the past two years, both Vikram Bakshi and McDonald’s have been seeking control of the company. The US-based fast-food chain is pursuing an arbitration proceeding at the London Court of International Arbitration.
According to the Hindustan Times, falling revenues, lack of investment and a legal battle over ownership of the fast-food chain led to the trouble.
As a result of expiring licenses, more outlets in the city may be forced to shut, PTI reported.
McDonald’s India Pvt Ltd (MIPL) spokesperson Barry Sum was quoted as saying, “The Board of CPRL is working to obtain the required licenses. Pending this, CPRL is temporarily suspending the operations of the affected restaurants.”