169 McDonald’s outlets will be closed in India after a conflict escalated with the local partners. This has not just affected McDonald’s reputations and its customers but also resulted in the unemployment of thousands of laborers.
McDonald’s was forced to take action as its local partner Connaught Plaza Restaurants Pvt Ltd (CPRL) broke many terms of their agreement.
CPRL managing director Vikram Bakshi said that the decision came as a huge shock and the company is looking at their legal options.
The argument between the two companies started in 2013 when McDonald’s issued that Bakshi’s time as managing director is over.
A.S. Chandiok, a lawyer who represented Bakshi, said that “They fell out because of McDonald’s thought that Mr. Bakshi was involved in irregular siphoning activities, so they wanted him to go.” He also told that Mr. Bakshi denied the allegation put on him.
On the statement given by McDonald’s on Monday, comment on the court dispute was not made, but the officials did say that they will control the impact of this decision on workers, suppliers, and stakeholders.
Madhurima Bakshi, a member of CPRL’s board said that this decision would directly impact 6500 employees and much more secondarily.
“It will take time to bring the current situation to a final resolution,” McDonald’s said.