Due to the disputes in the Connaught Plaza Restaurants (CPRL), a 50:50 joint venture between Vikram Bakshi and McDonald’s, the global burger giant will soon be going to shut down its 43 out of 55 restaurants in Delhi. This decision was made during the CPRL board meeting via Skype. Bakshi is still on the CPRL board along with his wife. McDonald’s has two representatives on the CPRL board.
Vikram Bakshi, former managing director of CPRL, while confirming this news said: “It’s unfortunate, but the operation of 43 restaurants operated by CPRL has been temporarily suspended”.
CPRL didn’t announce the reasons for its closure but according to the sources, CPRL failed to get the mandatory regulatory health licences renewed because of the infighting between Bakshi and McDonald’s. This move will render over 1,700 employees jobless.
The closure, reckon marketing and branding experts, will hurt McDonald’s, which has been sliding in India since it was dethroned by pizza brand Dominos from pole position in 2013 as the largest quick service restaurant (QSR) chain in the country.