McDonald's dispute puts channel partners at a sticky spot

Other than the 6,000 employees staring at job loss, several partners like frozen food suppliers, dairy product and sauce suppliers as also mall operators are up against an uncertain future as the long-term agreement with the food chain now hangs in the balance.
McDonald's dispute puts channel partners at a sticky spot
Over 40 McDonald's restaurants suspended their operations in the national capital due to expiry of Eating House Licenses; in New Delhi on June 29, 2017. Photo: IANS

Food and raw material suppliers, mall operators and employees of McDonald's are an agitated lot these days because of its decision to close 169 outlets across north and east India in view of its legal battle with franchise partner Vikram Bakshi.

Other than the 6,000 employees staring at job loss, several partners like frozen food suppliers, dairy product and sauce suppliers as also mall operators are up against an uncertain future as the long-term agreement with the food chain now hangs in the balance.

"From business point of view, it is a big hit on us because McDonald's is one of our largest food chain partners and Delhi is one of their biggest markets," a top official of a supplier who asked not to be named told PTI.

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