Over the long-fought court battle with Vikram Bakshi, McDonald’s now scouts for a new partner. The company reached a settlement and acquired full ownership in their joint venture Connaught Plaza Restaurants. With this, They have closed all their North and East Indian outlets for the next two weeks.
New Delhi: McDonald’s India has finally reached a settlement with Mr Vikram Bakshi, the joint venture partner for the Connaught Plaza restaurants of the franchise.
The company bought the 50% shares Bakshi had in the Joint Venture on Thursday.
Today’s ownership transfer marks an important and positive milestone for the franchise in North and East India,
The company has however not disclosed the financial details of the deal.
McDonald’s Corp’s bite fight
This legal battle between the franchise and Vikram Bakshi had been going on since half-a-decade. On 30 August 2013, McD declared publically in select newspapers that Bakshi was no longer the managing director of CPRL. This came due to the expiration of his term, according to the deal, on July 17, 2013. CPRL is responsible for over 150 outlets in North and East India. Bakshi had been the face of the franchise in India for over two decades. Despite the huge profit margin that he successfully brought for the company, They fought in Company Law Board (CLB) with Bakshi.
Finally, on Monday, the partners had told that they’re working towards an out-of-court settlement to the end this battle.
The presumed speculation is that Amit Jatia may take over McDonald’s outlets nationally. Amit leads the Hardcastle Restaurants, which runs the outlets in South and West India.
Food delivery and table reservation startups, like Zomato, have actively made an income out of delivering food from McD outlets. This comes out as the franchise is one of the most preferred eateries across the country.
Finally, The outlets have been closed in North and East India to conduct a “comprehensive assessment of operational protocols and employee training,“.