Thousands affected as McDonald's shuts 169 stores in India

The shock decision is set to affect some 6,500 employees currently employed in those outlets.

In a shock move, US fast food chain McDonald’s announced Monday (August 21) it is shuttering 169 outlets across northeast India.

The company, according to Reuters, said it had to cease those operations after discovering that its local joint venture partner Connaught Plaza Restaurants Pvt Ltd (CPRL) had breached franchise terms.

CPRL’s managing director Vikram Bakshi had told Reuters the announcement was a “big shock” for his company, adding that they are currently looking at their legal options.

The contention between both parties dates back to 2013. That year, McDonald’s had informed Bakshi that his services as managing director was no longer needed, a decision Bakshi then took McDonald’s to court for.

According to Bakshi’s lawyer, both companies went their separate ways because McDonald’s suspected that Bakshi had been siphoning money.

The closures will affect thousands of workers. CPRL said the fast food restaurant employs some 6,500 individuals between those 169 stores. 

McDonald’s has not commented on the legal proceedings, but said it would do its best to minimise the impact on those affected, including suppliers and landlords. 

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