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McDonalds To Close Its Outlets in North

The joint venture partner of McDonald’s, Mr. Vikram Bakshi, warns that almost all outlets of the fast food chain in North India may be shut down due to shortage in supply. He said that almost all outlets in East India have already been shut down and more than 80 outlets are under pressure by Radhakrishna Foodland owing to the limited stock.

McDonalds To Close Its Outlets in North

In a letter dated December 20, Radhakrishna Foodland Pvt. Ltd. clarified that it is discontinuing the supply chain services due to a fall in volume and future uncertainties along with a non-payment of certain additional amount.

The huge business during the festive season for McDonald’s is sure to witness a flip, which will directly hit the food chain’s revenue.

Bakshi addressed the landlords and developers of the outlets in a letter stating that their logistics vendor Radhakrishna Foodland in collaboration with McDonald’s Corporation and McDonald’s India Pvt. Ltd. has decided to hold back the stock paid for which is approximately Rs.10 Crore. He said this was a malicious act and that his company had no information about this in advance. He further added that it was a huge setback during the high sale festive season, yet they are making alternative arrangements and shall be back to serve the customers very soon.

After being expelled from the position of MD of the McDonald’s franchisee in August 2013, Bakshi has been involved in a constant dispute with the fast food chain over the management of CPRL. In August, McDonald’s India had discontinued the franchisee agreement and had asked CPRL to refrain from using its brand name, trademark, designs as well as the associated intellectual property.

Post termination of the license by McDonald’s, Bakshi had moved the NCLT. On being questioned, a McDonald’s India spokesperson replied that CPRL and their vendors have stopped delivering supplies, not MIPL.

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