McDonald’s cancels franchises for 169 restaurants in India


Business News - Opportunities - Reviews



McDonald’s cancels franchises for 169 restaurants in India – Aug. 22, 2017

5 stunning stats about McDonald's

India’s burger bust-up is going super-sized.

McDonald’s has terminated franchise agreements for 169 stores across the country’s north and east, claiming that its partner — Connaught Plaza Restaurants Limited (CPRL) — had broken the terms of their contract.

‘; var storytext = document.getElementById(‘storytext’); var heightToSkip = 0; function resetValues() { totalHeight = 0; targetChildElement = null; }
// Check if story is in the blacklist of articles to remove smartassets // [2017.07.27] Results of a one-off request from r.barbieri if(BLACKLIST[location.pathname] === true) { return } if(storytext == null) { console.log(“Error finding storytext element for SA embed”); return; } for ( i = 0; i 0) { heightToSkip -= storytext.childNodes[i].clientHeight; resetValues(); } else if(heightToSkip minHeight && targetChildElement != null) { //console.log(“total height = ” + totalHeight); //console.log(“childNode = ” + targetChildElement); storytext.childNodes[targetChildElement].insertAdjacentHTML(‘afterend’, smartAssetDiv); smartasset = document.getElementById(‘smartasset-article’); = ‘left’; // allows module to have text float to right =’20px’; =’25px’; //console.log(storytext.childNodes[targetChildElement]); //SMARTASSET.setDivIndex(targetChildElement); SMARTASSET.setSmartAssetScript(); /* bail out since we’re done */ break; } } /* div with id=”smartassetcontainer”. Sanity check to only embed once */ else if (storytext.childNodes[i].nodeName.toLowerCase() === ‘div’ && storytext.childNodes[i].id !== “undefined” && storytext.childNodes[i].id === “smartassetcontainer”) { break; } /* div with id=”ie_column” */ else if (storytext.childNodes[i].nodeName.toLowerCase() === ‘div’ && storytext.childNodes[i].id !== “undefined” && storytext.childNodes[i].id === “ie_column”) { resetValues(); } /* embeds from twitter, facebook, youtube */ else if (storytext.childNodes[i].nodeName.toLowerCase() === ‘div’ && storytext.childNodes[i].classList.contains(’embed’)) { resetValues(); } /* cnn video player */ else if (storytext.childNodes[i].nodeName.toLowerCase() === ‘div’ && storytext.childNodes[i].classList.contains(‘cnnplayer’)) { resetValues(); } /* images */ else if (storytext.childNodes[i].nodeName.toLowerCase() === ‘img’) { resetValues(); } /* images stored in figure tags */ else if (storytext.childNodes[i].nodeName.toLowerCase() === ‘figure’) { if(storytext.childNodes[i].clientWidth

It also accused the franchisee of failing to pay royalties it owes McDonald’s.

“The situation lasted almost two years during which McDonald’s India has provided CPRL with an opportunity to remedy the breaches but [it] failed to do so,” McDonald’s Asia spokesman Barry Sum said in a statement.

CPRL described the move as “contemptuous” and “oppressive” and said it planned to take McDonald’s to court.

“I was shocked,” CPRL managing director Vikram Bakshi told CNNMoney, adding that he would “keep fighting.”

Related: McDonald’s comeback kicks into high gear thanks to new sandwiches

McDonald’s has around 400 restaurants across 65 Indian cities, with the outlets in the south and west run by a different licensee. They will not be affected, the company said.

At least 40 McDonald’s outlets run by CPRL in New Delhi were already shuttered in June for failing to renew their operating licenses, and continued to appear as “temporarily closed” on the McDonald’s India website Tuesday.

Bakshi said his firm has been ordered by McDonald’s to close the remaining restaurants within 15 days, a decision he says will put 6,500 employees out of a job.

The global fast-food giant says it’s working to find a new partner to keep the restaurants running.

“McDonald’s remains fully committed to the opportunity in that region and are already looking at rebuilding the brand,” Sum said.

Related: McDonald’s and the Olympics are parting ways

In the meantime, however, the dispute is a blow to its plans to grow in Asia.

Earlier this month, McDonald’s announced plans to open 2,000 new restaurants in China over the next five years. The company recently sold most of its Chinese operations to a local firm, but retains a 20% stake in the business.

— Rishi Iyengar and Omar Khan contributed to this report

CNNMoney (New Delhi) First published August 22, 2017: 8:19 AM ET


Business News - Opportunities - Reviews



Leave a Reply