McDonald India registered a loss of Rs 305 crore in 2016-2017, compared with 2.8 crore in the previous year, post cutting its ties with Connaught Plaza Restaurants (CPRL). The burger chain continues to make losses even after 22 years when it first set up its business in India. The company has total net loss of Rs 422 crore. Also Read - Bizarre! YouTuber Eats One Year McDonald's Burgers to Prove He Can Eat Anything- Watch Video
Its estranged partner, Vikram Bakshi, managing director of CPRL, takes care of the business in north and east India. The eastern and southern markets are taken care by its franchisee Westlife Development. Also Read - Mumbai-based Businessman Loses Rs 1.86 Crore After Six Missed Calls
The Economic Times reported, “Considering that CPRL is having significant accumulated losses as of date and considering that the company has terminated all its franchise arrangements in favour of CPRL, the management feels that its investments in CPRL are impaired and accordingly a provision of Rs 198.20 crore has been considered in the financial statements of the company for diminution in value of investments in CPRL.” The information was shared by McDonald India in its latest regulatory filing. Also Read - DL-HC-MCDONALD'S McDonald's challenges HC order on NCLT show-cause notice
McDonald outlets in east and north India, had to shut last year after CPRL’s logistics partner Radhakrishna Foodland discontinued its supply services due to non-payment of certain dues.
Bakshi denied the charges, saying Radhakrishna Foodland in collusion with McDonald’s India is trying to hurt the business and there is no regular payment default.
Bakshi had earlier alleged that there are “different standards” for India compared to other countries and the company continuously ignored the food quality concerns raised by him over the last few years.
Both the parties are fighting the battle at various courts, including the National Company Law Tribunal and the Delhi High Court as also the London Court of Arbitration.
With Inputs From PTI