McDonald’s is facing “serious compliance risks” involving food quality and safety at 169 of its outlets in India. They are not sure about what is being served in over 100 of its restaurants. The American fast-food chain is involved in a legal battle with local partner Connaught Plaza Restaurants (CPRL). McDonald’s India (MIPL) issued a termination of its franchise agreement with CPRL four months ago, alleging that the latter had breached the terms of their partnership. It prohibits CPRL from using its brand name, trademarks, designs, and food recipes. However, CRPL continues to run these outlets in northern and eastern India.
The two entities are involved in a legal battle since 2013 over the ownership of the restaurant chain’s business in the north and east India. However, the situation got worse earlier this week when 84 of these restaurants were shut down after a key logistics partner withdrew support.
It is almost two decades that McDonald’s rules Indian hearts and runs over 400 restaurants here. The American fast-food chain is now reportedly in search for a new business partner to run stores in north and east India.