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Vandana
Vandana

QSR CHAIN

Mc Donald's shuts 43 out of 55 restaurants in Delhi

mcdonalds-reuters In the US market, Mc Donald's posted 1.3 per cent decline in sales in its January results | Reuters

Popular quick service restaurant (QSR) chain Mc Donald's is shutting its 43 out of 55 branches in Delhi as they could not get regulatory permit or "eating house clearance" to continue operations. These branches were operated by its North and East Zone franchisee Connaught Plaza Restaurants Private Limited (CPRL). 

"We have applied for the regulatory permit. It is under process. This is a temporary suspension," said a person associated with the company. Denying reports that around 1,700 jobs may be lost, he said, "All the employees will be given salary for this period." 

CRPL's managing director Vikram Bakshi has taken Mc Donald's to company law board on the issue of abrupt sacking in 2013. Although Bakshi still owns 50 per cent in the JV, the legal battle has soured relationship between the partners.

Of late, McDonald's has been losing ground to other QSR chains such as Domino's and new entrants in the burger space—Burger King, Carl's Jr, Fat Burger and Burger Singh. The legal battle and lack of investment has taken a toll on Mc Donald's north India business.

Mc Donald's sales have declined in its home market, the US. The company posted 1.3 per cent decline in sales in its January results.

Westlife Development Ltd, through subsidiary Hardcastle Restaurants Pvt. Ltd (HRPL), owns the franchise for the west and south India operations of McDonald's and runs 242 restaurants.

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