43 McDonalds Outlets Shut Down in Delhi, 1700 People Lose Jobs | Here’s Why

Burgers and fries have always been synonymous with Mc Donald’s ever since our childhood. Its sumptuous variants of burgers have always been a feast and brought a smile on the faces and to the hearts of those who relished it. But the taste of Mc Donalds will soon fade away from the palates of people residing in Delhi as the sudden shutting down of its 43 out 55 outlets in the state capital has come as a shock to all the Mc Donald’s lovers.

Not only this, but the sudden closing down of operations of 43 McD restaurants in Delhi will leave the 1700 employees stranded without job hampering their personal as well as the professional lives.

Reason for shutting down of McD restaurants in Delhi 

The news came in as a shock today afternoon, when the international fast-food giant, McDonald’s India Private Limited (MIPL) announced to discontinue the operations of its almost 80 % of the outlets across Delhi, which is under the 50:50 joint venture with the Connaught Plaza Restaurants Pvt Ltd (CPRL) on the grounds of prevalent unhygienic conditions and legal battle.

The major burger brand, McDonald’s was in the legal tussle with the CPRL. Also, McD’s mandatory regulatory health licenses had expired at a lot of its outlets to keep their businesses rolling and the fast food chain couldn’t get the licenses renewed for further operations.

Effects of sudden closure of 43 McDonald’s outlets in Delhi

Mc Donald’s will witness a great downfall in its business revenues this year after the shutdown of its 43 outlets as Delhi was the central market for the brand’s franchise in the northern region of India. Customers of the McDonald’s in Delhi will now have to either switch over to another brand or will have to travel to the remaining 12 McD restaurants in the city irrespective of the distance from their places.

Another major concern due to the closure of McDonald’s outlets is a large number of its employees who have turned jobless overnight. Though CRPL is retaining the 1700 employees of the 43 McD restaurants that will be closed from today and will pay them the salaries for the time of their suspension.

However, the sources reveal the CPRL is willing to have out of the court settlement but the McDonald’s is planning to undergo the proper legal procedure. The decision of shutting down of McDonald’s 43 restaurants in Delhi was taken by CRPL during a board meeting held via Skype on Wednesday morning. CPRL is running 168 restaurants in the region and has two representatives for McD on board.

Source: economictimes.indiatimes.com

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Yamini S. Verma

A dreamer and a go-getter, this is how she defines herself. With seven- plus years of experience in Journalism, Yamini has worked with various publications in print and online. With an inclination towards photography, she dreams to go on around the world tour someday and capture the beauty of nature through her lens. You can write to her at hello@chandigarhmetro.com
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