McDonald's ended a six-year JV battle in India, taking full control of CPRL
McDonald's bought out Vikram Bakshi's half of Connaught Plaza Restaurants, temporarily closed 165 outlets and set them reopening within about two weeks.
What was changed
In May 2019, McDonald's ended its six-year battle with Indian franchise partner Vikram Bakshi by taking over the 50:50 joint venture Connaught Plaza Restaurants, which ran its outlets in north and east India. It simultaneously announced the temporary closure of 165 outlets while the business was reset. The terms, including settlement of the contentious $330 million claim by CPRL, were not disclosed.
With the out-of-court settlement, Mr and Mrs Bakshi ended their association with the nearly 25-year-old JV, and CPRL became wholly owned by McDonald's India Private Limited and its affiliate McDonald's Global Markets LLC. Robert Hunghanfoo was appointed CPRL head, saying restaurants would 'start to progressively open over the next two weeks or so'.
The transition focused on two areas: giving employees clarity about their future and revamping food quality at the restaurants. McDonald's-certified suppliers, who had stopped supplying CPRL after the franchise agreement was cancelled, could return. Bakshi, credited with introducing McDonald's to India, was reported to be in talks for Wendy's franchise rights as he plotted a second innings in Indian fast food.
Why it worked
The 50:50 structure had produced years of litigation and a cancelled franchise agreement, leaving outlets and suppliers in limbo.
Full ownership let McDonald's rebuild supplier relationships and quality control without a co-owner's veto.
Closing all 165 affected outlets at once, rather than dribbling closures, turned the reset into a single two-week operation.
Settling out of court ended a $330 million claim and the uncertainty hanging over staff and customers.
What can be applied
Ownership clarity beats a locked 50:50 stalemate: buying out a warring partner — even at the price of closing every affected store for a reset — reopens the path to growth.
Aftermath
Outlets began reopening progressively from mid-May 2019 under McDonald's management. Bakshi denied having decided his next move amid reports of talks with Wendy's, whose Indian franchise holder declined to comment.