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Case Code: MKTG407
Case Length: 8 Pages 
Period: 2008-2020   
Pub Date: 2020
Teaching Note:Available
Organization : McDonald’s India
Industry :Fast Food
Countries : -
Themes: International Marketing/Operational Strategy/Joint Venture/Conflict Management/Brand Management
Case Studies  
Business Strategy
Human Resource Management
Leadership & Entrepreneurship

McDonald`s Franchise in Trouble in India

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CPRL was a 50:50 JV between McDonald’s and Bakshi. The partnership flourished for many years, outperforming its rivals. However, the first cracks in the JV appeared in 2008, when McDonald’s tried to buy out Bakshi’s share of their JV for US$7 million. Bakshi thought this was far less than it was worth. Reportedly, consulting firm Grant Thornton valued CPRL at US$331 million in 2009... ..

Marketing Case Studies | Case Study in Management, Operations, Strategies, Business Environment, Case Studies
Marketing Case Studies | Case Study in Management, Operations, Strategies, Business Environment, Case Studies
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The closure of the McDonald’s outlets in northern and eastern India was hurting the fast food chain’s business in the country. In the year ended December 2017, McDonald’s India posted a loss of Rs. 3.05 billion. Reportedly, the company had made a provision of Rs. 1.98 billion in its financial statements to cut back losses accumulated due to the termination of the franchise contract with CPRL. ..


While Bakshi had expressed his willingness to agree to an out-of-court settlement, McDonald’s stated that there was no such possibility. McDonald’s planned to appoint a new licensee partner and rebuild its brand across the northern and eastern markets. However, some analysts felt that the development would be challenging for McDonald’s as the company would need to rebuild its brand across half the country...



Exhibit I: McDonald’s vs Domino’s Pizza in India
Exhibit II: Top Ten Quick Service Restaurant Brands across India in 2016
Exhibit III: Performance of McDonald’s Franchises in India
Exhibit IV: Revenue Growth of Key Players in QSR Sector in India
Exhibit V: McDonald’s vis à vis its Major Competitors in India