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43 out of 55 McDonald's outlets in Delhi to shut shop from today

File photo. Photograph: (Others)

WION Web Team New Delhi, Delhi, India Jun 29, 2017, 10.42 AM (IST)

43 out of 55 McDonald’s restaurants in New Delhi will be shut from Thursday after a failure to renew eating house licenses by its North and East India licensee Connaught Plaza Restaurants Pvt Ltd (CPRL), PTI reported.

CPRL is a 50:50 joint venture between Vikram Bakshi and McDonald's India, that runs the fast food chain in north and east India.

McDonald's said, "the eating house licenses of a number of McDonald's restaurants in Delhi have expired".

"The Board of CPRL is working to obtain the required licenses. Pending this, CPRL is temporarily suspending the operations of the affected restaurants," McDonald's India Pvt Ltd (MIPL) spokesperson Barry Sum said. 

Media reports said this would lead to a loss of 1,700 jobs, but Barry Sum rubbished the reports, saying "employees becoming jobless is erroneous".

"We understand that CPRL is retaining the employees of affected restaurants and will pay them their salary during the period of suspension," he added.

Without specifying a number, a source told PTI that more outlets in the Capital could be shut as a result of expired licences.

 

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