McDonald’s News On Battle With Vikrant Bakshi

McDonald’s is an American fast food chain that has restaurants in over 100 countries all over the world. McDonald’s is known for its excellent and delicious hamburger, French fries and cheeseburgers. They also feature other amazing food items like wraps, soft drinks, shakes, chicken items, etc. By revenue, it is the world’s largest chain of restaurants that serves millions of consumers daily. It has great service and food quality that makes it so popular. Moreover, they are present almost everywhere, whether it is a small town or a big city.

Although McDonald’s is so popular and successful, it faced difficulties gaining profit in India. Many of McDonald’s news came last year about the closing of many restaurants in India. Entering India even after two decades it could not gain any profit

Mcdonald’s first profit in India after almost two decades:

McDonald’s entered as a food chain the Indian market in 1996, but the first profit of this huge franchise was reported In the financial year 2017-2018, this profit was the amount of 6.25 million USD. This giant company had two partners in India- North and East are operated by Connaught Plaza Resturant (CPRL) while western and southern markets are under Westlife Development. McDonald’s faced a net loss of Rs 421 crore in these two decades.

McDonald’s dispute with Vikrant Bakshi:

Vikrant Bakshi is the head of Connaught Plaza Resturants which is one of the partners of McDonald’s in India. In August 2017 the fast-food chain said it had issued a notice of termination on its franchise agreement with CPRL. McDonald’s blamed Vikrant Bakshi that he was benefitting his other business interests from the management of McDonald’s in India, they ousted him as CPRL’s managing director and alleged him for financial irregularities.

A long legal battle took place between the food chain and Vikrant Bakshi. The latter stated that he was removed oppressively to buy him out at a lower value to take full control of the chain’s business in Northern and Eastern India. Bakshi was however offered 120 crore that is 50 percent stake in CRPL by McDonald’s, but he effused and valued his stake at Rs 1,800 crore. Therefore, the two couldn’t agree.

Also Read: McDVoice Survey

This legal battle affected the operation of the company badly, and its growth was hampered in North as well as East of India. The number of new stores opening was also downed. However, the company managed to earn its first-ever profit after 22 years of business in India after altering provisions in its financial statement in June; it made provisions of Rs 198.2 crore to cut back all the losses that it faced due to a legal battle with its franchise partner CRPL.

The National Company Law Tribunal reestablished Mr. Vikrant Bakshi later and also resisted McDonald from interfering in CPRL’s functioning. Moreover, it appointed an administrator to check and oversee the functioning of CPRL so that there is no disturbance in the future. However, both the parties are still fighting in some legal forums for their cases. This was not the first time McDonald’s was doing rounds in the world, a big name is always surrounded by the news.

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