The American fast-food chain, McDonald’s in a statement has hit out at its legal local partner in India Connaught Plaza Restaurants (CPRL) by saying that there are ‘serious compliance risks’ involving food quality and safety at 169 of its outlets. This warning comes four months after McDonald’s India (MIPL) had issued a notice of termination of its franchise agreement with CPRL, alleging that the latter had breached the terms of their partnership.
According to a report by Quartz, McDonald’s has called for an immediate closure of these restaurants. The report quoted an MIPL spokesperson, who in an e-mail response, said that since the termination of the franchise agreement, MIPL has not been able to verify if the unauthorised McDonald’s restaurants operated by CPRL in north and east India are complying with applicable McDonald’s standards, including those pertaining to supplies, operations and safety standards, and quality required for McDonald’s products.
However, the fast-food chain’s estranged partner Vikram Bakshi on Thursday dismissed all these claims by saying that 16 out of 84 closed outlets in North and East India have reopened after a new logistics firm was roped in even as the fast food major alleged lapses in food quality and safety level by “all facets of the supply chain”.
Nearly 84 outlets, mostly in East India and some in the north, had to down shutters on Monday after Bakshi-led CPRL’s logistics partner Radhakrishna Foodland discontinued its supply services alleging reduction in volume and non-payment of certain dues, among others.
“The new logistics partner is capable enough of the supply to the restaurants that are affected due to raw material crunch and about 16 outlets have re-opened today,” Bakshi told PTI.
“CPRL team is working diligently to have all our outlets re-opened the soonest possible,” he said, hinting that in about a week, all the closed outlets will start operating in full flow. Both the parties are fighting the battle at various courts, including the NCLT and the Delhi High Court as also the London Court of Arbitration.