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McDonald's may say bye to unapproved suppliers of Connaught Plaza Restaurant Ltd

Bakshi roped in other vendors and suppliers to continue running the outlets even though CPRL had been prohibited from using McDonald’s branding.

, ET Bureau|
May 14, 2019, 07.32 AM IST
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Last week, McDonald’s bought out Bakshi’s 50% stake in CPRL, ending a six-year dispute.
NEW DELHI: McDonald’s may discontinue unapproved suppliers and products that were brought on board for stores in the north and east during a prolonged dispute with its Indian partner now that the matter has been resolved and the US fast-food chain is back in charge of operations.

“It is possible that we will discontinue suppliers and products that are not part of our approved menu items and have not gone through McDonald’s approval process,” Barry Sum, McDonald’s Corp. director, corporate relations, Asia, said in an email to ET.

McDonald’s had terminated its franchise agreement for 169 outlets in north and east India run by former partner Vikram Bakshi-led Connaught Plaza Restaurant Ltd. (CPRL) in mid-2017. McDonald’s had then issued advisories to consumers “not to eat at McDonald’s,” citing “serious quality compliance risks.”

While the chain’s prominent long-standing partners include Vista Processed Foods for patties, Schreiber Dynamix Dairies for cheese, Mrs Bector Foods for buns and sauces, and dairy products from Amrit Food, some other suppliers had exited.

Bakshi roped in other vendors and suppliers to continue running the outlets even though CPRL had been prohibited from using McDonald’s branding, trademark, design and marketing policy rights.

Last week, McDonald’s bought out Bakshi’s 50% stake in CPRL, ending a six-year dispute. It then shut all outlets in the north and east for a couple of weeks to conduct a “comprehensive assessment of operational protocols and employee training.” The chain said its existing managers and crew would continue to be employed during the closure and will be actively involved in activities to reopen the restaurants.

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