New Delhi: Amid legal battle between the McDonald’s and estranged partner Vikram Bakshi, five leading companies have shown interest for partnership with the fast-food joint.
According to a report in the Economic Times, five companies that have shown interest in the US burger chain’s north and east business as potential franchise partners include Speciality Restaurants, Jubilant FoodWorks, Moon Beverages, Hardcastle and Lite Bite.
Speciality Restaurants owns fine-dining brands such as Mainland China and Oh! Calcutta and Jubilant FoodWorks operate well-known global brands such as Domino’s Pizza and Dunkin Donuts. Moon Beverages is the largest Indian franchise bottler for Coca-Cola. Lite Bite Foods is the promoter of Punjab Grill and Asia Seven.
Meanwhile, shares of Speciality Restaurants and Jubilant FoodWorks climbed up to 7 percent in Monday’s trade session.
Shares of Speciality Restaurants have gone up 7.47 percent to hit a high of Rs 123 on BSE, whereas Jubilant FoodWorks gained 1.64 percent to Rs 1,381.50.
Lite Bite, Moon Beverages, and Speciality Restaurants have confirmed the development saying that they would be interested in partnering with the Indian unit of McDonald’s, whereas, Hardcastle and Jubilant FoodWorks have yet to comment.
Earlier this month, the National Company Law Appellate Tribunal (NCLAT) said that it will hear Vikram Bakshi’s plea on licence termination along with McDonald’s petition against his reinstatement on September 21.
NCLAT had denied any interim relief to Vikram Bakshi on his plea seeking a stay on termination of the franchise agreement by McDonald’s for 169 stores operated by CPRL.
CPRL is led by Vikram Bakshi, the estranged partner of the US-based food chain giant. CPRL is a 50:50 JV between McDonald’s and its estranged partner Bakshi.
Bakshi has been at loggerheads with the fast food chain over the management of CPRL after he was ousted from the post of MD of the McDonald’s franchise in August 2013.
With this, the fate of 169 stores in north and east India remains in limbo as Connaught Plaza Restaurant Ltd’s (CPRL) licence to operate lapsed on September 6.
Burger and fries chain McDonald’s India on August 21 terminated the franchise agreement for the 169 outlets operated by CPRL.
As part of the termination, CPRL has ceased to use McDonalds’s name, system, trademark, designs and its associated intellectual property, among others from September 5.