McDonald's Ends Six Long Year Dispute with Vikram Bakshi, Buys Out Stake
McDonald's Ends Six Long Year Dispute with Vikram Bakshi, Buys Out Stake

World’s largest QSR chain McDonald's and Vikram Bakshi on Thursday announced an out-of-court settlement, ending their almost six-year-long dispute.

As part of the agreement, the fast food chain will buy out for an undisclosed sum Vikram Bakshi and his entities' 50 per cent stake in Connaught Plaza Restaurants Pvt Ltd (CPRL) that operates McDonald's chain of quick-service restaurants in northern and eastern India.

It has also appointed Robert Hunghanfoo as Head of CPRL with immediate effect, who will be supported by McDonald's global leaders along with the CPRL team, to facilitate a smooth transition.

"CPRL is now wholly owned by MIPL and its affiliate MGM (McDonald's Global Markets LLC) following the completion of a settlement reached with former JV partner, Vikram Bakshi," McDonald’s shared in a statement.

Commenting on the development, Hunghanfoo shared, "Accomplishing a mutually agreed settlement in this matter means that our customers can now look forward to a reinvigorated, consistent and uniquely McDonald's experience when they visit us.”

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 its global system expertise to fortify high operating standards for our local customers.

According to Ron Christianson, Global Head of Corporate Relations, International Developmental, Licensee Markets, McDonald's, the company is also looking for a partner to run the operation in the north and east India.

"We are still actively progressing the search for an ideal partner for North and East India. That process is still ongoing but certainly rest assured once we do, the ownership will transition to whoever the individual is," he added.

Bakshi signed a partnership with McDonald’s in 1995 to open outlets in India.

However, in southern and western region, McDonald's outlets are run by Amit Jatia-led Westlife Development.

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