Franchise News
QSR Magazine: McDonald’s Closing Nearly 170 Restaurants in India
The closures come after a franchisee dispute.
McDonald’s is shutting down 169 restaurants in the northern and eastern regions of India after a franchisee dispute. According to an article in QSR Magazine, the closures come as the fast food chain takes legal action against a partner—Connaught Plaza Restaurants Pvt Ltd (CPRL)—that it says breached its contract by defaulting on payments.
The issue between McDonald’s and this franchise operator is not new—the issues started back in 2013 when McDonald’s said that CPRL’s managing director, Vikram Bakshi, ended. While Bakshi challenged the decision in court, the fast food giant said that it believed he was involved in “irregular siphoning activities.”
In a statement cited by QSR Magazine, McDonald’s India said, “We have been compelled to take this step because CPRL has materially breached the terms of the respective franchise agreements relating to the affected restaurants.”
The McDonald’s closures could potentially mean that thousands of jobs will be lost, however, the brand says that it will try to lessen the impact on employees, suppliers and landlords.
To read the original article, click here.
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Cassidy McAloon
FollowCassie has over five years of digital and traditional media experience. She joined NLA after working as a television news producer in both Milwaukee and Chicago, and now specializes in aligning strategies across the board for her clients, ultimately building buzz and telling compelling stories through content marketing, social media, digital campaigns and traditional PR.
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