McDonald's ends feud with India partner, will run outlets itself: report

Bengaluru: Fast food giant McDonald's Indian arm has reached a settlement with former partner Vikram Bakshi, acquiring full ownership in their joint venture Connaught Plaza Restaurants Ltd, reports said on Thursday.

"Starting Thursday, McDonald's restaurants in North and East, which were run by CPRL, have temporarily closed, for what MIPL said was to conduct a 'comprehensive assessment of operational protocols and employee training," The Economic Times reported.

The US fast food chain was involved in a long-standing legal battle with Mr Bakshi, claiming his company, which operated outlets of the chain in the north and east India, breached the terms of their franchise agreements.

Both McDonald's India and Vikram Bakshi did not immediately respond to Reuters' request for comment.

In August 2017, the Indian unit of McDonald's had ended its pact with Connaught Plaza Restaurants Pvt, which ran 169 outlets in the northern and eastern India, saying its partner violated "certain essential obligations" of the agreement, including the payment of royalties.

Amid the turmoil, several outlets were briefly closed down and the move had affected operations of the fast-food chain as some suppliers snapped ties. But despite warnings from the US-based company, Connaught Plaza Restaurants kept most of the outlets open.