New Delhi: Mc Donald’s food outlets will remain closed for almost two weeks in 10 states in India starting May 9. The announcement came after McDonald’s India Pvt. Ltd acquired full ownership of Connaught Plaza Restaurants Ltd, the master franchisee of the food outlet in northern and eastern India, after buying out former partner Vikram Bakshi’s 50% stake.
Connaught Plaza runs 169 outlets in the states of Delhi, Haryana, Himachal Pradesh, Jammu and Kashmir, Punjab, Rajasthan, Uttar Pradesh, Uttarakhand, West Bengal and Bihar.
McDonald’s India has decided to close its restaurants in the North and East India temporarily to conduct a “comprehensive assessment of operational protocols and employee training”, according to a statement by the firm and added that the restaurants will be opened over the next two weeks.
“Existing managers and crew will continue to be employed during this temporary closure and will be actively involved in activities to re-open the restaurants,” the statement said.
During the shutdown period, the burger giant plans to focus on two areas – revamping the quality of the food being served at the restaurants and providing the employees with clarity regarding their future.
McDonald’s-certified suppliers, who had stopped supplying to Connaught Plaza after McDonald’s had cancelled its franchise agreement, may also make a comeback.
“Our top priority is to deliver the highest quality restaurant experience to our customers. We will be working around the clock during this
process and anticipate our restaurants will start to progressively open over the next two weeks or so. While we are confident this will result in the best possible experience for our customers, we sincerely regret any inconvenience the temporary restaurant closures may cause,” said Robert Hunghanfoo, who has been appointed head of Connaught Plaza Restaurants after Bakshi’s exit.
McDonald’s Corporation and Bakshi had formed an equal joint venture and named it Connaught Plaza Restaurants in 1995 to run McDonald’s outlets in North and East India for a period of 25 years.
In August 2017, McDonald’s ended its pact with Connaught Plaza, saying it violated “certain essential obligations”of the agreement, including the payment of royalties.
Amid the turmoil, several outlets were briefly closed down and the move had affected operations of the fast-food chain as some suppliers snapped ties. But despite warnings from the US-based company, Connaught Plaza Restaurants managed to keep most of the outlets open.
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