The trend of fast food in North India is high enough to attract many western food chains to start their outlets and grow their business. It’s not new to India to witness foreign brands or foreign food outlets being setup in large numbers in its major cities. And one name that can’t be missed when it comes to fast food is the global giant McDonalds. McDonalds has gained immense popularity within few years of its entry in India. It has grown into one of India’s largest food chains providing employment to thousands of people all across the country. However, McDonalds is recently in news for some disturbing reasons.
Disputes between the Delhi’s Connaught Plaza Restaurants (CPRL) and the US-based McDonalds have led to the decision of shutting down 43 out of 55 McDonalds outlets in New Delhi. Though the internal fights between these two parties seemed to turn ugly, this decision of shutting more than half of the outlets was least expected. Mr.Vikram Bakshi, the former Managing Director of CPRL has decided to close 43 outlets in Delhi, without detailing the reasons behind his decision. McDonalds India Pvt Ltd (MIPL) stated that licenses of many ‘eating houses’ in Delhi have expired and they are in the process of acquiring the renewal on them. Though it didn’t mention the complete shutting down of the outlets, it used the term ‘suspended’, which may not refer to complete shutdown. Information obtained from higher sources revealed that Bakshi made up this decision stating that the food being served at some outlets was not safe and that he wasn’t able to control the food supply. Though there are many speculations around how the dispute between CPRL and McDonalds actually started, reports say that all this trouble started in the year 2013 when McDonalds decided to remove Bakshi from the position of Managing Director of the joint venture of Vikram Bakshi and MIPL.
McDonalds which was once the largest Quickest Service Restaurants chain in India had lost its position to Domino’s and this issue might damage its reputation even further. Shutting down 43 outlets has led to a loss of 1700 jobs, which is very unfortunate. Though MIPL stated that all these employees would be paid their salaries even during the suspension period, it doesn’t make things any better. Marketing experts feel if the dispute between the two parties doesn’t end quickly, it would be a huge blow to the burger giant.
So what do you think about this? Do you think it's really the end of Mcdonalds in India? Well whatever it is, this is for sure a shocking news for all of us as many of us have so many memories of our childhood here. After all, who else serves happy meals..