Several newspapers reported a dispute between Connaught Plaza Restaurants Private Limited (CPRL), the local joint venture between Vikram Bakshi and McDonald’s, and the fast food giant.
The legal dispute between CPRL, the 50:50 local venture between Vikram Bakshi and the US headquartered McDonald’s that operates the fast food chain in north and East India and the global burger giant results in the temporarily shut of 43 outlets.
Bakshi, who is the former managing director of CPRL, is still on the CPRL board along with his wife. McDonald’s has two representatives on the CPRL board. The decision to close down the outlets was taken during a board meeting via Skype on Wednesday morning, Economic Times reported.
Brand strategist Harish Bijoor told Economic Times that unless McDonald’s sorts out its legal battle, things might worsen. “Every passing day is a slur on the front-end brand,” he said, adding that there is nothing really bigger than the brand.