McDonalds is going through a tough time. After most of its outlets in Delhi were shut down due to quality concerns the same fate followed it to the northeast. McDonald's estranged joint venture partner Vikram Bakshi has said nearly all outlets of the fast-food chain in east India have been shut and several others in the north are on the verge of close down due to discontinuation of supplies by its logistics partner.
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All in all, there are 80 outlets that have been hit by this cutoff in supplies by Radhakrishna Foodland, a move which is seen as a fallout of the ongoing spat between the fast food major and Bakshi.
"Almost all the outlets in east India have been shut because of the move by logistics partner, and others (in north India) are also under pressure due to supply crunch," Bakshi told PTI, adding that a total of over 80 outlets are suffering currently considering the limited stock each outlet has.
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In a letter dated December 20, Radhakrishna Foodland Pvt Ltd wrote to CPRL, the 50:50 JV between Bakshi and McDonalds India, saying it is discontinuing the supply chain services due to reduction in volume and uncertainty of the future, among others as also non-payment of the certain additional amount.
When contacted, a McDonald's India spokesperson said: "We were informed that their vendors have stopped delivering supplies...This is between CPRL and their vendors, not MIPL.?