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McDonalds to close 169 restaurants in India

Following a dispute with Connaught Plaza Restaurant Ltd, McDonalds has terminated its agreement resulting in the closure of 169 restaurants in India.

The dispute arose from alleged breach of contract and payment defaults, which means all McDonalds situated in the North and East of India will close.  This is despite the global brand saying it would look for a new franchise operator. 

McDonald’s outlets in South and West India will remain unaffected as they are run by a different operator. 

In a statement McDonalds said; “We have been compelled to take this step because CPRL has materially breached the terms of the respective franchise agreements relating to the affected restaurants.”
As reported in Food Franchise in June, the fast food chain closed over 40 of its Delhi restaurants after a number of breaches.

In a separate statement, Connaught Plaza said it’s considering “appropriate legal remedies” in response.

Tuesday, 22nd August, 2017
MVH Media
Food Franchise