Best Media Info

Editor’s Picks
Special
Interviews
Events
Cannes Lions 2018

Guest Times

McDonald’s ousts Vikram Bakshi as MD; legal showdown on cards

On August 30, 2013, the burger chain put out a public notice stating that Bakshi would no longer be the MD of Connaught Plaza Restaurants, a 50:50 JV that operated the McDonald’s stores in North and East India

BestMediaInfo Bureau | Delhi | September 2, 2013

Vikram Bakshi

In a sudden development last week, US-headquartered McDonald’s, the world’s second-largest fast food chain, appears to have completely fallen out with its Indian partner, Vikram Bakshi, and removed him from the post of Managing Director. Interestingly, Bakshi has been the face of McDonald’s in India ever since it launched in India in 1996.

On Friday, August 30, 2013, the burger chain put out a public notice stating that Bakshi would no longer be the MD of Connaught Plaza Restaurants, a 50:50 venture between the two that has the franchise to run the McDonald’s stores in North and East India. The notice stated that Bakshi’s term as MD expired on July 17, 2013. The venture operates and runs about 150 McDonald’s restaurants under non-exclusive licences from McDonald’s India, the notice said. The notice clarified that the day-to-day operations would be run by the board of Connaught Plaza Restaurants “till a new managing director is appointed”.

However, indications are that Bakshi will not go down without a fight. He has hinted at challenging his ouster in court. Legally, Bakshi is a 50 per cent equal owner of McDonald’s in India for the North and East operations.

McDonald's, which set up its first store in India in 1996, made its entry through two joint ventures. While the JV with Bakshi ran outlets in the northern and eastern parts of India, the second joint venture, Hardcastle Restaurants, with Mumbai-based Amit Jatia operated stores in south and west India. In 2011, McDonald's sold its stake in Hardcastle Restaurants, converting it into a master franchisee operation.

Market sources aver that Bakshi was pressing for a similar arrangement. While there is no official confirmation from any quarter, market observers claim that McDonald’s is looking at consolidating all operations of McDonald’s in India under Jatia. But that would depend on the court, in case Bakshi decides to fight it out.

Info@BestMediaInfo.com

Advertisment
Post a Comment