It is so disheartening to know we’ll no longer be able to have our favourite burgers at McDonald’s. Nearly all McDonald’s outlets in east India have been shut and several others in the north are on the verge of closure due to discontinuation of supplies by its logistics partner.
With the closure of more than 80 outlets on Monday by CPRL, Radhakrishna Foodland, which is the supply chain service provider and the logistic partner of the company, discontinued its service in east and now targeting north. This may lead to put more pressure on one of the franchise partner, Vikram Bakshi to sell out to the global fast food giant.
Connaught Plaza Restaurant (CPRL) holds a 50:50 joint venture between Vikram Bakshi and McDonald’s. Bakshi with McDonald’s had a total number of 160 outlets. But a fallout between the company and McDonald’s supply chain partner Radhakrishna Foodland, due to non-payments of dues by CPRL, led to hit the supply chain services across east and if this is going to be the scenario more outlets are likely to get affected over the next few days in north too.
“We kept sending them notices and, we had written three letters to CPRL and kept following up with several meetings with Mr Bakshi, as even our regular payments were not being made properly” said Raju Shete, promoter of Radhakrishna Foodland.
However, according to Shete, Bakshi had asked the logistics firm to take up supplies from companies that were not associated with McDonald’s and as an official partner of the US burger chain, the company is not allowed to do it.
McDonald’s had already discontinued its franchise agreement with CPRL in August due to a boundless legal battle with Bakshi, which began in 2008, when the fast-food giant wanted to buy out his stake in the company.