Abstract

The case discusses the advent of McDonald’s India in the country through its two master franchises. Connaught Plaza Restaurants Private Limited (CPRL) run by Vikram Bakshi (Bakshi), and McDonald’s India was a 50:50 joint venture which operated the chain in north and east India. The second master franchisee, Westlife Development Limited (WDL) through its subsidiary Hardcastle Restaurants Private Limited (HRPL) run by Amit Jatia (Jatia), owned the master rights for the west and south India operations of MCD India. The case further describes the relations between McDonald’s and its master franchises and the way the two franchicees operated, which was as different as chalk and cheese. A friendly buyout of McDonalds’ stake by WDL launched HRPL into a high growth orbit while the strained relations with CPRL led to a spiraling toward a deadlock in the north and east. Due to the dispute with one of the master franchises, was McDonald’s losing ground in India?

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• The franchising challenges faced by a multinational F&B company in emerging markets
• How franchisees are chosen and how profiling of prospective owners is done
• The role of real estate and litigation aspects
• Ownership Vs Licensing models

Keywords

McDonald,Vikram Bakshi,Amit Jatia,CPRL,Arbitration,QSR,quick service restaurants,Franchisee,real estate