HomeRetail NewsMcDonald's re-opens 13 outlets in Delhi after settlement with Vikram Bakshi

McDonald's re-opens 13 outlets in Delhi after settlement with Vikram Bakshi

Connaught Plaza Restaurants Private Limited (CPRL), now wholly-owned by McDonald’s, on Sunday said it has re-opened 13 restaurants in Delhi after reaching an out-of-court settlement with Vikram Bakshi, the estranged India partner of the US-based fast food chain.

Profile image

By CNBC-TV18 May 19, 2019, 2:06:34 PM IST (Published)

McDonald's re-opens 13 outlets in Delhi after settlement with Vikram Bakshi
Connaught Plaza Restaurants Private Limited (CPRL), now wholly-owned by McDonald’s

, on Sunday said it has re-opened 13 restaurants in Delhi after reaching an out-of-court settlement with Vikram Bakshi, the estranged India partner of the US-based fast food chain.

Customers visiting these re-opened locations will experience an enhanced service experience with more customised hospitality, see refreshed menu boards, merchandising and packaging, and of course, taste authentic McDonald’s menu items, the fast food chain said in a statement.

"All other restaurants remain closed, but are planned to re-open over the coming days and weeks as we complete the work needed to ensure customers receive the best possible experience when they visit us," McDonald's said.

“We are thrilled to have started the re-opening process and look forward to serving our customers a more authentic McDonald’s experience at these first 13 locations now open for business in Delhi,” said Rob Hunghanfoo, head of CPRL. “Our CPRL teams have been fully focused on the work needed to prepare the restaurants over the past week, and these openings are thanks to their dedication, collaboration and professionalism.”

On May 9, McDonald's said it reached an out-of-court settlement with Bakshi, buying out CPRL from their joint venture for an undisclosed amount.

McDonald's and Bakshi had in 1995 signed a partnership agreement to open outlets of the US fast food chain in India. It was for a period of 25 years.

The two partners had formed a 50:50 joint venture — CPRL — which was responsible for outlets of the fast food chain in the northern and eastern regions of India through the franchise route.

In 2017, McDonald's terminated CPRL's franchise agreement, which ran 169 outlets in the northern and eastern India, citing non-payment of royalties.

A long-winding legal tussle and battle for control of the business ensued afterwards with Bakshi keeping around 165 McDonald's branded outlets operational in the northern and the eastern regions of the country.

In the southern and western regions, McDonald's outlets are run by Amit Jatia-led Westlife Development.

The major tussle started after Bakshi was ousted as the managing director of CPRL in 2013, following which he approached the National Company Law Tribunal (NCLT,) which reinstated him to the MD position.

McDonald's challenged the same in the National Company Law Appellate Tribunal (NCLAT). In August 2017, McDonald's told the NCLAT that a settlement with its estranged partner Bakshi was not possible.

With inputs from agencies
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!