McDonalds announced on Monday that it has plans to cut all of its 169 restaurants in the northern and eastern regions of India.
The move could leave thousands of workers unemployed and continues to add fuel to the fight the fast food giant is having with its partner Connaught Plaza Restaurants Pvt Ltd (CPRL) over it breaching the terms of their franchise agreements.
According to CPRL’s board, McDonald’s outlets in the region employed 6,500 people directly and many more indirectly.
The two have been in a long legal dispute and already more than 40 outlets had been temporarily shut down starting in late June.
According to Vikram Bakshi, managing director of CPRL, the fast food company’s decision was a “big shock.” CPRL is studying all of its legal options.
McDonalds said that as part of the cut, all of the restaurants will have to stop using McDonald’s name, trademarks, designs, branding, and recipes within 15 days of the termination notice.
“It will take time to bring the current situation to a final resolution,” McDonald’s explained. They are currently looking for another partner.
Disclaimer: We have no position in McDonald’s Corporation (NYSE: MCD) and have not been compensated for this article.