Friday, 3 November 2017

Not lovin' it: McDonald's to shut down 43 of 55 outlets in Delhi temporarily

Global burger joint and India's favorite fast food chain, McDonald's is shutting its 43 outlets out of 55 in Delhi today. The tiff between CPRL (Connaught Plaza Restaurants) and US-headquartered McDonald's has taken a sour turn for the consumers as well as the employees. 
Vikram Bakshi, the former managing director of CPRL told ET, "It's unfortunate, but operation of 43 restaurants operated by CPRL has been temporarily suspended.”
CPRL operates 168 restaurants in total. The tiff between Bakshi and McDonald's has led to the shutting down of the outlets.
It was observed that the decision to shut down the outlets was taken via a Skype meeting on Wednesday and could leave 1,700 employees jobless.
But, according to an official statement released by McDonald's India Pvt. Ltd. (MIPL), the services by McDonald's are temporarily suspended for the operations of specific restaurants.
The temporary suspension is due to the expiration of the Eating House Licenses of specific restaurants. However, the Board of the CPRL is currently working to obtain the licenses need to comply with McDonald's regulatory standars.
The brand also ensured that CPRL is retaining the employees of affected restaurants and will pay them their salary during the period of suspension.
The former managing director of CPRL was removed from his position in August 2013. Ever since his removal, he was involved in a legal battle with the US-headquatered fast food chain. Bakshi was responsible for dragging McDonald's to Company Law Board (CPL). Although, the CPL verdict is still pending for the particular case.
McDonald's has also been pursuing arbitration against Bakshi in the London Court of International Arbitration.
Shutting down almost 80 per cent of its outlets might cause the American fast food chain to go in great loss, but the restaurant chain decided to do it anyway due to health and regulatory reasons.
It seems like the meal is not going to be that happy for Delhiites after India's favourite burger chain's decision to temporarily drop their cheesy services.


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