McDonald’s has temporarily closed its restaurants in northern and northeastern India to conduct a 'comprehensive assessment of operational protocols and employee training'.
Vikram Bakshi's Connaught Plaza is the master franchisee of McDonald’s in north and east India, with 169 outlets.
McDonald’s India Pvt Ltd has acquired full ownership after buying former owner Vikram Bakshi’s 50% stake, settling the dispute with him that was on for five years.
Starting Thursday, the company has shut down operations in these two regions temporarily claiming this is done to conduct a ‘comprehensive assessment of operational protocols and employee training’.
The statement said, “The existing managers and crew will continue to be employed during this temporary closure and will be actively involved in activities to re-open the restaurants.”
On Thursday, McDonald’s India said that Connaught Plaza and its affiliate Mc Donald’s global market would be headed by Robert Hunghanfoo with immediate effect.
Problems between the two partners started in 2003 when they removed Bakshi from Connaught Plaza claiming mismanagement in operations. Bakshi then approached the court.
Bakshi and McDonald’s launched their joint venture in 2003.
In July 2017, the National Company Law Tribunal (NCLT) termed Bakshi’s order as illegal and asked the fast food chain to appoint him as the managing director of Connaught Plaza. Soon after the court's order, the fast food chain terminated their franchise agreement with Connaught Plaza and they began searching for the new place.
The company said on Thursday that it “remains committed” to the opportunities in north and eastern India and it tends to actively look for a licence for the regions.
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