All McDonald’s East India Outlets Shut Due To ‘Supply Crunch’

Several outlets in the north are on the verge of close down, reportedly due to discontinuation of supplies.

2 min read
File photo of American fast food outlet McDonalds.

McDonald's estranged joint venture partner Vikram Bakshi on Monday, 25 December said nearly all outlets of the fast-food chain in east India has been shut and several others in the north are on the verge of close down, due to discontinuation of supplies by its logistics partner.

All in all there are 80 outlets that have been hit by this cutoff in supplies by Radhakrishna Foodland, a move which is seen as a fallout of the ongoing spat between the fast food major and Bakshi.

Almost all the outlets in east India have been shut because of the move by logistics partner, and others (in north India) are also under pressure due to supply crunch.
Vikram Bakshi

A total of over 80 outlets are suffering currently considering the limited stock each outlet has, he added.

In a letter dated 20 December, Radhakrishna Foodland Pvt Ltd wrote to CPRL, the 50:50 JV between Bakshi and McDonald’s India, saying it is discontinuing the supply chain services due to reduction in volume and uncertainty of the future, among others as also non-payment of certain additional amount.

The otherwise massive business in the festive season for McDonald's is set to see a huge blip which will hit the food chain's revenue.

Our long standing logistics vendor Radhakrishna Foodland allegedly in collusion with McDonald’s corporation and their wholly owned subsidiary McDonald’s India Pvt Ltd....has decided to hold back stock paid for approximately Rs 10 crore by us.
Vikram Bakshi

He further wrote:

While the American company and its subsidiary, MIPL, may have with their usual mala fide and malicious actions managed to give CPRL a temporary business setback at the end of the year and during this high sale festive season, yet we have made and are making alternative arrangements and shall be back to serve our customers very soon.

Bakshi has been at loggerheads with the fast food chain over the management of CPRL after he was ousted from the post of MD of the McDonald's franchisee in August 2013.

McDonalds’s India in August terminated the franchise agreement and had asked CPRL not to use its brand system, trademark, designs and its associated intellectual property, among others.

(This story has been edited for length.)

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