McDonald's, India
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Connaught Plaza Restaurants vs. McDonald’s
John Sarkar, December 22, 2018: The Times of India
From: John Sarkar, December 22, 2018: The Times of India
The partnership between McDonald’s and Vikram Bakshi-led Connaught Plaza Restaurants (CPRL) was signed in 1995 for a period of 25 years
It had led to the birth of CPRL. McDonald’s had terminated CPRL’s franchise agreement in August last year, citing non-payment of royalties. Despite that, Bakshi has kept around 165 McDonald’s-branded outlets operational in the north and the east of India. In the south and west, McDonald’s outlets are run by Amit Jatia-led Westlife Development.
“It’s a valuation game,” said a person aware of the development. “Bakshi had wanted settlement earlier, even in 2017, after matters went to court. But McDonald’s was not ready to pay as it thought the valuation was too high. In the melee, the McDonald’s brand became the real victim, as other QSR chains such as KFC and Burger King gained market share in the north.”
Trouble between the two partners started brewing in 2008 when McDonald’s first tried to buy out Bakshi. Things took an ugly turn five years later when McDonald’s voted against the re-election of Bakshi as the MD of CPRL and accused him of financial mismanagement. It saw Bakshi turn to the NCLT, which reinstated him as the MD of CPRL last year. It was all downhill from that point onwards as both parties locked horns in NCLT, NCLAT and in Delhi high court.
Prices
Indian Big Mac among cheapest/ 2017
The Times of India
See graphic:
The price of a Big Mac in India, Pakistan and other countries in 2017
