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20 Sep 2017

18 of 43 closed McDonald's outlets reopen in Delhi

Delhi: McDonald's outlets shut over license expiry

Connaught Plaza Restaurants Limited (CPRL), which manages McDonald's operations in North and East India, reopened 18 of the 43 fast-food chain outlets in Delhi shut since June over expired eating house licenses.

Another three restaurants would be opened soon, said McDonald's estranged Indian joint venture partner Vikram Bakshi of CPRL.

CPRL decided to reopen 21 outlets for which licenses were received.

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In context

Delhi: McDonald's outlets shut over license expiry
CPRL runs 169 McDonald's restaurants in North and East India


CPRL runs 169 McDonald's restaurants in North and East India

The move follows a decision by CPRL's board, led by Justice GS Singhvi appointed by National Company Law Tribunal.

CPRL, a 50:50 joint venture between McDonald's India and Vikram Bakshi, is the fast-food chain's North and East India licensee.

Earlier in September, following the expiry of the franchise agreement termination notice by McDonald's, the fate of 169 restaurants run by CPRL became uncertain.

Legal Fight

London Court of International Arbitration rules in McDonald's favor

McDonald's India and Vikram Bakshi are engaged in a legal battle over the franchise license termination by the American fast-food chain.

While Bakshi has approached NCLAT (National Company Law Appellate Tribunal) in India, McDonald's has contested the case at London Court of International Arbitration.

The London Court recently asked Vikram Bakshi to sell his 50% stake in CPRL to McDonald's India.

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McDonald's India's statement

McDonald's said: "Consequent on the termination of the franchise agreements of 169 McDonald's restaurants operated by CPRL in the North and East of India, effective September 6, CPRL is required to cease using the McDonald's System and is no longer authorized to operate McDonald's restaurants."

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