43 out of 55 McDonald’s outlets in Delhi shut down due to health license
New Delhi: 43 of the capital’s 55 McDonald’s will close on Thursday because their licenses have expired, sources said.
Connaught Plaza Restaurants Pvt Ltd (CPRL), which runs the McDonald’s franchise for North and East India, has been forced to close down 43 of its 55 outlets in the region as it failed to secure regulatory health clearances to keep the business rolling, as per sources.
The decision to close down the outlets was taken during a board meeting via Skype on Wednesday morning.
“It’s unfortunate, but operation of 43 restaurants operated by CPRL has been temporarily suspended,” said Vikram Bakshi, former managing director of CPRL, which operates 168 restaurants.
The former top boss of the Indian firm, Vikram Bakshi took the international giant to court in 2013 after it said he could not remain the managing director of the equally owned joint venture.
1,700 employees will lose their jobs and that as a consequence of the dispute which began a while ago, health clearances for the Delhi outlets were not renewed, sources said.