McDonald’s India Pvt Ltd (MIPL) announced on Thursday that it has acquired full ownership of Connaught Plaza Restaurants Limited (CPRL) and that the latter is now wholly owned by MIPL and its affiliate McDonald’s Global Markets LLC or MGM.
Starting Thursday, McDonald’s restaurants in North and East, which were run by CPRL, have temporarily closed, for what MIPL said was to conduct a ‘comprehensive assessment of operational protocols and employee training’. “Existing managers and crew will continue to be employed during this temporary closure and will be actively involved in activities to re-open the restaurants,” MIPL said in a statement.
This follows completion of a settlement with former joint venture partner Vikram Bakshi, and the acquisition by MGM of 50% voting equity shares in CPRL, held since inception by Bakshi and his affiliated entity, the statement added. The size of the acquisition could not be verified.
With the transfer of ownership and management, Bakshi ends his over-two-decade-old association with CPRL and McDonald’s.
Effective immediately, MIPL named Robert Hunghanfoo as head of CPRL, now owned by MIPL and its affiliate.
“During the transition, MIPL will be focused on two key areas – providing employees with clarity and confidence in their future at McDonald’s and leveraging McDonald’s global system expertise to fortify high operating standards for our local customers,” the statement added.
Bakshi had signed the JV as an equal equity partner with McDonald’s Corporation in 1995. “McDonald’s remains committed to the opportunities in North and East India and intends to facilitate future growth by continuing to actively progress finding the right Developmental Licensee (DL) for the region,” the statement added.
Source: Economic Times