US-based fast-food chain restaurant McDonalds is in talks to close down its 43 of its outlets from a total of 55 in Delhi. This might lead to job lost for 1700 employees.
The decision of shutting down the outlets made when the tussle between Vikram Bakhi and McDonalds took an ugly turn. They both are in Joint Venture of 50:50 ratio and is managed under Connaught Plaza Restaurants.
"It's unfortunate, but the operation of 44 restaurants operated by CPRL has been temporarily suspended," said Vikram Bakshi, former managing director of CPRL.
A report released by McDonalds also states that many outlets operating in Delhi licence are expired. Report also added that CRPL did not get all the health related licences due to the conflict between Vikram Bakshi and McDonalds. This conflict has cost both the parties in terms of revenue as projections of revenue reported in FY15 stood at 6% but in 2010-11 it was 29%.
We understand that CPRL is retaining employees of affected restaurant and will pay them their salary during the period of suspension, McDonalds India Private Ltd, spokesperson Barry Sum said.