Hindustan Times (Patiala)

CPRL to reopen 84 McDonald’s outlets in east India this week

- Harveen Ahluwalia harveen.a@livemint.com

NEWDELHI: Connaught Plaza Restaurant­s Pvt. Ltd (CPRL), the north and east India licencee of American fast food chain McDonald’s Corp., will reopen by the end of this week all 84 restaurant­s it closed in December because of supply constraint­s.

CPRL is a joint venture between McDonald’s India Pvt. Ltd (MIPL) and Vikram Bakshi, and operates 169 McDonald’s restaurant­s across north and east India.

“Outlets in north India are already open and the ones in east will reopen by the end of this week. The movement of vehicles (supplies) is slow due to fog,” CPRL managing director Bakshi told Mint.

“By the end of this week, 167 McDonald’s will be operationa­l, while two outlets (in Delhi) are shut for renovation,” he added.

In the last week of December, 84 outlets of McDonald’s in north and east India had to face closure after the company’s logistics partner Radhakrish­na Foodland discontinu­ed its services on 20 December, citing “reduction in volumes and uncertaint­y of the future”. Later that week, CPRL partnered with a new logistics firm ColdEx Logistics in a bid to reopen the shut restaurant­s.

The ColdEx Logistics website says it is a Gurugram-based cold chain company serving brands like KFC, Domino’s, Burger King, Subway, Starbucks, ITC, Nestle and Amul.

McDonald’s India had disapprove­d the new partner and raised food safety and quality concerns at all 169 restaurant­s in north and east India.

“Since the terminatio­n of the franchise agreements, MIPL has not been able to verify if the unauthoriz­ed McDonald’s restaurant­s operated by CPRL in north and east India are complying with applicable McDonald’ s standards,including those pertaining to supplies, operations and safety standards and quality required for McDonald’s products. These restaurant­s need to be closed immediatel­y,” an MIPL spokespers­on had said, in an emailed statement on December 28.

MIPL declined comment on the new developmen­t which comes in the backdrop of an ongoing legal battle between Bakshi and McDonald’s India. On August 21, McDonald’s India had terminated its franchise pact with CPRL, under which Bakshi was supposed to shut all restaurant­s from September 6. The McDonald’s-Bakshi feud goes back to 2013 when the former had voted against Bakshi’s re-election as the managing director of CPRL. Bakshi challenged his removal at the Company Law Board (now National Company Law Tribunal or NCLT), accusing McDonald’s India of mismanagem­ent and oppression. NCLT reinstated Bakshi as managing director in July 2017.

While McDonald’s India has challenged the NCLT order in National Company Law Appellate Tribunal or NCLAT, Bakshi has challenged the terminatio­n of franchise pact in NCLT, for being in contempt of the earlier order, which had asked McDonald’s to refrain from interferin­g in the functionin­g of CPRL.

Both appeals are pending in respective forums.

 ?? MINT/FILE ?? A McDonald's outlet at Connaught place in New Delhi
MINT/FILE A McDonald's outlet at Connaught place in New Delhi

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