43 of the capital’s 55 McDonald’s will close today because their licenses have expired, according to the Press Trust of India.
In an unprecedented move, the infighting between Connaught Plaza Restaurants (CPRL), the 50:50 local joint venture between Vikram Bakshi and the US-headquartered McDonald’s that operates the fast food chain in north and east India, and the global burger giant took an ugly turn with the CPRL board deciding to shut down in Delhi from Thursday.
The decision to close down the outlets was taken during a board meeting via Skype on Wednesday morning.
While the estranged joint venture partner declined to share reasons for closure, highly-placed sources disclosed that CPRL failed to get the mandatory regulatory health licences renewed because of the infighting between Bakshi and McDonald’s. The move, they point out, will render over 1,700 employees jobless.