The C Times, 30 June 2017, Agartala: On Thursday 29 June, the US burger chain McDonald’s, Connaught Plaza Restaurants Pvt Ltd (CPRL) has been required to shut down 41 outlets in Delhi following its failure to renew their licences.
McDonald’s India Pvt Ltd said in a statement that “the eating house licences of a number of McDonald’s restaurants in Delhi have expired. The board of Connaught Plaza Restaurants Private Limited (or CPRL, McDonald’s licensee in North and East India) is working to obtain the required licenses.”
“Pending this, CPRL is temporarily suspending the operations of the affected restaurants. McDonald’s is committed to ensuring that our restaurants are operating in full compliance with McDonald’s standards and applicable regulations.”
“India continues to be an important market for McDonald’s and we are committed to working with CPRL to resolve the issue as soon as possible. While there are ongoing legal disputes suspending the operations of the restaurants is a collective decision of the CPRL Board of Directors.”
The statement added, “It’s our understanding that CPRL has notified the key affected stakeholders including employees, landlords and suppliers before the temporary suspension started on June 28.
When asked, Bakshi said that “Around 40 restaurants have temporarily suspended operations from today morning. As this is a temporary shutdown, all our employees shall be retained.”
Asked whether the licences were not renewed because of ongoing legal tussle, Director, Corporate Relations, Asia Foundational Markets McDonald’s Barry Sum said that “We want to focus our effort on resolving the issues as soon as possible at the moment.”