McDonald’s has revealed plans to shut all 169 outlets in India. This will apply to restaurants found in the northern and eastern regions and follows a fallout with franchise partner Connaught Plaza Restaurants (CPRL). Marketing has reached out to McDonald’s and CPRL for comment.
In a statement to Reuters, a McDonald’s spokesperson explained that its partner Connaught Plaza Restaurants had contravened franchise agreements and the move was in response to that. The move also potentially places the jobs of thousands of workers at risk, said Reuters.
Following the fallout, all the restaurants affected will have to stop using McDonald’s name, branding, designs, trademarks and recipes within 15 days of the termination notice. This was according to the McDonald’s spokesperson, who added that its search for a new partner has begun.
The move also follows a legal tussle between McDonald’s and CPRL which happened in 2013, involving Vikram Bakshi, managing director of CPRL. When contacted by Reuters, Bakshi said the decision came as big shock and that CPRL was studying its legal options.