FOOD SERVICES | Staff Reporter, India

McDonald's ends agreement with Indian franchisee

It plans to shut all of its 169 restaurants in India's northern and eastern regions.

According to Bloomberg, McDonald’s Corp moved to terminate an agreement involving more than a third of its restaurants in India.

McDonald’s said Connaught Plaza Restaurants Pvt violated “certain essential obligations” of the agreement, including the payment of royalties. It has reportedly “failed to remedy the breaches, despite being provided with an opportunity to do so in accordance with the agreements.”

The development creates a challenge for McDonald’s, disrupting operations in one of the world’s biggest emerging markets. The company will need to rebuild its brand across half the country as it searches for another partner.

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