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McDonald’s outlets likely to be closed in the north and eastern India

 

Monday saw about 84 McDonald’s outlets being closed in both the North and the Eastern parts of the nation. The shutters have been brought down, pressurising the McDonald’s franchise partner Vikram Bakshi more than ever. The pressure to sell the Global Burger eatery is  threatening him.

The Connaught Plaza Restaurants is a 50:50 venture between him and McDonald’s, which ran about 160 outlets overall. However, a fallout between the Company and  the Supply Chain Partner RadhaKrishna Foodland has hit the restaurant chain owing to
non-payment dues issues.

According to sources, Bakshi is planning to airlift the supplies but the restaurant chain is going
to be affected however. RadhaKrishna Foodland has allegedly ended the services abruptly in this peak-season time.

The CRPL was constantly in contact with the officials of the RadhaKrishna Foodland for a due
of about two crores INR not being paid as of yet.

On the other side, officials of the RamaKrishna Foodland stated that services to CRPL were not
stopped in an abrupt manner. A formal letter was written for the same, followed with multiple
meetings.

The prime reason for this stoppage was the dues not being paid even after several reminders. The collateral damage will not be funded by RamaKrishna Foodland, he added.

In connection to the matter pertaining to the outstanding dues by the Company, the volumes of the company had fallen by almost half which led to the closure of almost half the store early this year. Due to poor sales, most logistics were not picked up by the Company, leading to expiry of those products.

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