McDonald's India War With Partner Ends, Will Reopen Outlets In 2 Weeks

The US fast food chain was involved in a long-standing legal battle with its Indian partner Vikram Bakshi.

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McDonald's India War With Partner Ends, Will Reopen Outlets In 2 Weeks

McDonald's has bought out the share owned by Vikram Bakshi in Connaught Plaza Restaurants Ltd.


Bengaluru: 

Highlights

  1. McDonald's in legal tussle with North, East India partner since 2013
  2. Severed ties in 2017 but he kept running nearly 160 outlets
  3. McDonald's has now bought out his share, will run all outlets

McDonald's Corp's Indian arm has reached a settlement with former partner Vikram Bakshi, acquiring full ownership in their joint venture Connaught Plaza Restaurants Ltd, the company said in a statement.

"Today's ownership transfer marks an important and positive milestone for McDonald's in North and East India," McDonald's said.

The US fast food chain was involved in a long-standing legal battle with Mr Bakshi, claiming his company, which operated outlets of the chain in north and east India, breached the terms of their franchise agreements.

The company has closed its restaurants in North and East India to conduct a "comprehensive assessment of operational protocols and employee training," the statement said, and added that the restaurants will be opened over the next two weeks. The company appointed Robert Hunghanfoo as head of Connaught Plaza.

Mr Bakshi did not immediately respond to Reuters' request for comment.

In August 2017, the Indian unit of McDonald's had ended its pact with Connaught Plaza Restaurants Pvt, which ran 169 outlets in the northern and eastern India, saying its partner violated "certain essential obligations" of the agreement, including the payment of royalties.

Amid the turmoil, several outlets were briefly closed down and the move had affected operations of the fast-food chain as some suppliers snapped ties. But despite warnings from the US-based company, Connaught Plaza Restaurants kept most of the outlets open.



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