McDonalds shuts 43 out of 55 outlets in Delhi over ownership battle & hygiene

McDonalds to shut 80% outlets in Delhi/ AP image

New Delhi: The famous US-based food joint Mc Donalds is set to face a huge blow in the national capital as out of 55 outlets of McDonalds, 43 to be shut starting Thursday, i.e. 80% of the total outlets.   The reason for the shutdown is failure to renew eating house licenses by its North and East India licensee Connaught Plaza Restaurants Pvt Ltd (CPRL). The CPRL is the local joint venture between Vikram Bakshi and McDonald's. When contacted, McDonald's said "the eating house licenses of a number of McDonald's restaurants in Delhi have expired". Since last two years, Vikram Bakshi and McDonald's are in loggerheads over control of CPRL and arbitration proceeding is being pursued by the food chain at the London Court of International Arbitration. Without specifying a number, a highly placed source told media that more outlets in the Capital could be shut as a result of expired licences. "The Board of CPRL is working to obtain the required licenses. Pending this, CPRL is temporarily suspending the operations of the affected restaurants," McDonald's India Pvt Ltd (MIPL) spokesperson Barry Sum said. When asked about the possible job losses due to closure, Sum said the rumour about "employees becoming jobless is erroneous." "We understand that CPRL is retaining the employees of affected restaurants and will pay them their salary during the period of suspension," he added.