News: McDonald's employees insecure about future amid growing uncertainty


McDonald's employees insecure about future amid growing uncertainty

The conflict between McDonald's India and Connaught Plaza Restaurant continues to grow after the shutdown of over 80 CPRL restaurants last week.
McDonald's employees insecure about future amid growing uncertainty

According to the latest media report, amid the growing uncertainty about the future of Connaught Plaza Restaurant (CPRL), the estranged partner of McDonald’s which has closed 84 restaurants in the last week, employees have started to worry about their future within the organization.

The report also stated that the CPRL had lost the McDonald’s logistic partner, Radhakrishna Foodland which had alleged non-payment of dues. Also, CPRL had been sent a termination notice with regards to the franchise agreement by McDonald’s in August 2017. But CPRL had continued to operate McDonald’s branded restaurants despite the notice.

The matter reached the legal forums and the hearing for the issues raised by both the organizations was held in September. According to this media report, the National Company Law Tribunal reinstated Vikram Bakshi as the Managing Director of CPRL and appointed an administrator for the smooth functioning of CPRL restaurants without any interference. However, the closure of over 80 restaurants in the East is because of the pullout of the logistics partners, which Bakshi had alleged happened because of the pressure and interference of McDonald’s India Private Limited.

Bakshi stated, "We have not shirked our responsibility. When 43 of our restaurants were closed in Delhi for months, we have paid not only the salaries of our people but also the rentals of the restaurants that were shut. We shall meet our commitments."

Around 43 branches of McDonald’s operated by CPRL had closed down in Delhi in September, but there had been reports about the reopening 18 of those outlets. Amid the repeated closures of the restaurants, the media report states that there has been a negative effect on the morale of the employees.

Also, since the branches closed down in the last week of the year and which was also the holiday season in the country, there have been reports suggesting the increase in footfall for McDonald’s competitors like KFC in the market.

People Matters had reported in September last year, that about 6,500 employees of McDonald’s as part of the CPRL which has been operating on behalf of McDonald’s in the northern and eastern regions of the country, will be the victims of the ongoing legal battle between CPRL and McDonald’s India.

Read full story

Topics: C-Suite, #Jobs

Did you find this story helpful?



How do you envision AI transforming your work?