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Here’s Why McDonald’s has Temporarily Shut Down its 43 Outlets in Delhi

This article is written by a student writer from the Spoon University at UDelhi chapter.

While the country was still coping up with India’s loss in Champions Trophy and Dhinchak Pooja’s new song, there came another blow for McDonald’s lover.

43 out of 50 McDonald’s outlets have been temporarily shut down in Delhi from Thursday, 29th June due to a failure in the renewal of the license. Here’s a complete look into the story.

1. Reason Behind Shutting Down

Every restaurant, cafe and eating house requires a lot of licences to operate. One of them is the Eating House License, which is valid for three years and needs to be renewed after the expiry. 

There has been a tussle between the North Indian franchisee and McDonald’s because of the failure in the process of renewal of the Eating House License.

“The ‘eating house licenses’ of a number of McDonald’s restaurants in Delhi have expired. The board of Connaught Plaza Restaurants Private Limited (McDonald’s licensee in North and East India) 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) said in a statement.

As a result, more than 80% of McDonald’s outlets operating in Delhi have been temporarily shut down till further notice.

2. And There’s More

Renewal of the license is only one side of the story. There’s more to the shutting down of everyone’s favorite McDonald’s. According to sources, failing revenues, lack of investment and a legal battle over ownership of the global fast food chain led to this decision.

CPRL is a joint venture of Vikram Bakshi and MIPL. In 2013, Vikram Bakshi was removed from the post of Managing Director. From then on, MIPL and Bakshi have been fighting over the ownership of the venture. This has hampered the operations of McDonald’s in Delhi.

Apart from this, maintaining hygiene and store-level efficiency is also an issue for McDonald’s.

3. Unemployment and Broken Hearts

This temporary shutting down of 43 McDonald’s outlets has made a lot of people unemployed.  According to reports, this temporary closing of 43 outlets in Delhi has led to loss of jobs of about 1,700 employees.

 “We understand that CPRL is retaining the employees of affected restaurants and will pay them their salary during the period of suspension.” quoted MIPL.

McDonald’s has been a cheap and ready-to-go option for everyone. I remember going to McD to enjoy the Happy Meal as a kid. And now, that I’ve grown up, I still can’t stop myself from going here because that’s the only option you have when you’re broke (college students will understand me the best!).

I know everyone’s hooping that their nearest McDonald’s reopens as soon as possible, because we can’t wait to enjoy the Fries and Cold Coffee Float.

Someone who'll be content with a book, a cup of chai (tea) and cooking.