After Delhi, 169 McDonald’s Are Going To Shut Down Across India: We Will Miss You McAloo Tikki!

Just when we were reeling from the news of 43 McDonald’s outlets shutting down in the capital recently, we just got news that 169 more are going to face closure across the country! Believe us, we’re just as flabbergasted as you are and chills are running down our spine. We’re shaking as we share this news with fellow McDonald’s lovers. It almost looks like we’re going to have to bid adieu as McDonald’s shuts down in India, and we’re so not happy about it.

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McDonald’s Shuts Down In India

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All 169 outlets that currently exist in North and East India may disappear within the next two weeks! For all of us who’ve had countless memories bound with the most popular QSR of our times, this news is indeed morbid in nature. The US firm has already announced the termination of the franchise agreement between its Indian counterpart McDonald’s India Private Limited (MIPL) and Vikram Bakshi’s Connaught Plaza Restaurants Ltd (CPRL) earlier today.

Shutting down this massive chain of quick service restaurants is not only going to make us terribly depressed about our favourite go-to budget food place but in the bigger picture, it also puts a huge question mark on the job status of thousands of McDonald’s employees and contracts with suppliers and vendors. This break is going to be as messy as it gets.

What Made This Happen?

McDonald’s says that CPRL breached the terms of franchise repeatedly and could not mend the breaches despite being given enough opportunities to do so. Their relationship with CPRL was already hanging by the last threads when Bakshi got removed from his post as Managing Director back in 2013 when McDonald’s had cited ‘financial irregularities’. Soon after, Bakshi moved Company Law Board against the move, and Mcdonald’s moved London Court of International Arbitration in response. Bakshi was reinstated as MD of CPRL only last month by the National Company Law Tribunal. Sadly, that hasn’t helped matters very much.

What Happens Next?

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Vikram Bakshi’s CPRL will be banned from using any of McDonald’s intellectual properties within the next fortnight. The operational licenses of all of these 169 stores were with CPRL and so they will shut down all in one go.

McDonald’s says that it is “committed to finding the right ‘developmental licensee partner’ for North and East India and taking steps to do so,” as quoted in Economic Times. But, we all know that it is largely unlikely that they’ll be able to find a new partner within the next 15 days given the state of affairs. They will, however, take their time to give the final resolution for the current situation. These outlets will remain shut indefinitely until then. MIPL is going to work on terms that will make the impact of such a shut down less severe for all parties affected by it, including all the thousands of employees, suppliers, and landlords.

We’re going to be very sad having to watch the shutters go down on all of their outlets, for what seems to be an eternity. After all, we did love McDonald’s with all our heart for all of these years.

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