NEW
DELHI: McDonalds is shutting down 169 stores in India, which may lead to
more than 10,000 people losing their jobs.
The US burger chain, which has a presence in around 119 countries, said on Monday that it was terminating its agreement with Connaught Plaza Restaurant (CPRL) due to alleged breach of franchise agreements. CPRLis a 23-year-old 50:50 joint venture (JV) between Vikram Bakshi and McDonalds India.
This means CPRL, which runs McDonald's operations in north and east India, including Delhi, will not be able to use the chain's logo, branding, trademarks and recipes within 15 days of receiving the termination notice.
"Each McDonald's outlet employs around 40-60 workers depending on its size," said a senior McDonald's executive, who did not wish to be quoted. "This excludes corporate employees and suppliers, including farmers who supply raw produce such as tomatoes, onions, lettuce and ingredients for sauces."
The US burger chain, which has a presence in around 119 countries, said on Monday that it was terminating its agreement with Connaught Plaza Restaurant (CPRL) due to alleged breach of franchise agreements. CPRLis a 23-year-old 50:50 joint venture (JV) between Vikram Bakshi and McDonalds India.
This means CPRL, which runs McDonald's operations in north and east India, including Delhi, will not be able to use the chain's logo, branding, trademarks and recipes within 15 days of receiving the termination notice.
"Each McDonald's outlet employs around 40-60 workers depending on its size," said a senior McDonald's executive, who did not wish to be quoted. "This excludes corporate employees and suppliers, including farmers who supply raw produce such as tomatoes, onions, lettuce and ingredients for sauces."
HIGHLIGHTS
·
McDonald’s said it was terminating its agreement
with Connaught Plaza Restaurant (CPRL) due to alleged breach of franchise
agreements.
·
CPRL is a 23-year-old 50:50 joint venture (JV)
between Vikram Bakshi and McDonald’s India.
·
McDonald’s operates a total of around 430
outlets in India through CPRL and Hardcastle Restaurants.
