Companies

McDonald’s-Bakshi tussle: CPRL expects to re-open 20 outlets in Delhi-NCR soon

Meenakshi Verma Ambwani New Delhi | Updated on January 09, 2018 Published on December 27, 2017

Vikram Bakshi

New logistics vendor roped in for supplies

McDonald’s estranged Indian partner Vikram Bakshi has roped in a new logistics vendor and expects 20 outlets run by Connaught Plaza Restaurants Pvt Ltd (CPRL) to re-open in the Delhi-NCR region by Thursday.

About 100 McDonald’s branded restaurants in the East and Northern region run by CPRL have been impacted due to supply constraints after its logistics partner Radhakrishna Foodland decided to discontinue services to the company. Bakshi said: “We have activated a new logistics vendor who is working with us to re-open the restaurants that had to be shut down due to supply constraints. We expect 20 of these restaurants in the Delhi-NCR region to re-open by tomorrow.” He did not give out specifics about the new logistics partner for CPRL.

While all the McDonald’s restaurants in the Eastern region are shut, even some restaurants in the Northern region have been impacted. “We are hopeful that we will be able re-open our restaurants in the Eastern region in 7-10 days. With the new logistics vendor, we are in the process of making alternative arrangements with new warehouse and distribution centres,” he added.

Radhakrishna Foodland, the sole logistics partner of McDonald’s in India, manages distribution centres and logistics for the brand. But the company decided to discontinue its supply services to CPRL on December 20.

Legal action

Asked if CPRL will pursue legal action against Radhakrishna Foodland, Bakshi said: “We are evaluating and studying our legal options and will take appropriate action.”

CPRL is a 50:50 joint venture between McDonald’s India and Vikram Bakshi. The two partners have been embroiled in a legal tussle for the past five years and legal proceedings are going on in various forums, including the Delhi High Court.

McDonald’s India had terminated its franchise agreement with CPRL in August for all the 169 restaurants in the North and East region and subsequently had informed all CPRL suppliers that CPRL was not authorised to run McDonald’s restaurants. However, Bakshi has managed to continue operating these restaurants.

On the issue of supply constraints being faced by CPRL, McDonald’s India had earlier this week said that the dispute is between CPRL and its vendors and not McDonald’s India.

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Published on December 27, 2017
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