This Monday, 21st August 2017, McDonald snapped its franchise agreement with Connaught Plaza Restaurants Pvt Ltd (CPRL), who is responsible for running the McDonald's franchise for North and East India. McDonald's has alsoo taken away the trademark, policy rights, branding and design rights from the CPRL. This McDonald's Outlet closer turned out as tragedy for those who were employeed at McDonald's stores. All about 6,500 direct jobs are at high risk due to this overnight snapping decision.
In a statement, McDonald’s stated- it was “committed to finding the right developmental licensee partner for North & East India”.
Further Christianson added on speaking to Economic Times, the chain was “taking steps” to find the right partner.
Adding more he said- “We are committed to finding a new partner; it is very early stages and we will start the process soon,” he added, adding: “There are no concrete conversations as yet. It could take several months at the least and we cannot speculate at this stage.”
Earlier statement realeased during 43 McDonald's outlets shutdown in Delhi:To keep the business rolling, CPRL has failed to secure the regulatory health clearances which also included maintenance of quality and the hygiene of the outlets, because of the ongoing tiff between Bakshi and McDonals. This tiff between the two was ongoing since mid-2013, when Vikram Bakshi, the founder of CPRL dragged McDonald's to the court. This ugly decision of suspending 43 outlets is now going to affect over 1700 employees, resulting them turning unemployed overnight.
Vikram Bakshi, former managing director of CPRL stated- "It's unfortunate, but the operation of 43 restaurants operated by CPRL has been temporarily suspended". However, a McDonald's released a statement in which they said, "We understand that CPRL is retaining the employees of affected restaurants and will pay them their salary during the period of suspension."