McDonald’s is shutting down 169 stores in India, which may lead to more than 10,000 people losing their jobs. The US burger chain, which has a presence in around 119 countries, said on Monday that it was terminating its agreement with Connaught Plaza Restaurant (CPRL) due to alleged breach of franchise agreements. CPRL is a 23-year-old 50:50 joint venture (JV) between Vikram Bakshi and McDonald’s India. This means CPRL, which runs McDonald’s operations in north and east India, including Delhi, will not be able to use the chain’s logo, branding, trademarks and recipes within 15 days of receiving the termination notice.
Each McDonald’s outlet employs around 40-60 workers depending on its size, said a senior McDonald’s executive, who did not wish to be quoted. This excludes corporate employees and suppliers, including farmers who supply raw produce such as tomatoes, onions, lettuce and ingredients for sauces. McDonald’s operates a total of around 430 outlets in India through CPRL and Hardcastle Restaurants, the company’s franchise in the south and west. The company said it is looking for a new partner to replace CPRL. We understand that this action brings uncertainty for many, McDonald’s India said in an email. It will take time to bring the current situation to a final resolution.