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McDonald’s outlets now owns Connaught Plaza Restaurants reopens

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McDonald, Connaught Plaza Restaurants, Fast food retailer, Business news

New Delhi: Connaught Plaza Restaurants Private Ltd (CRPL), now wholly-owned by food service retailer McDonald’s, has re-opened 13 of its restaurants in Delhi starting 11 am on Sunday, a statement by McDonald’s said.

These are the first McDonald’s restaurants to be reopened after the ownership of CRPL changed hands on May 9. McDonald’s acquired Connaught Plaza Restaurants as the US-based major completed a settlement reached with former joint venture partner Vikram Bakshi.

 

McDonald, Connaught Plaza Restaurants, Fast food retailer, Business news

 

The acquisition ended a dispute between McDonald’s and its joint venture partner with whom the former had formed CPRL, which managed the 165 McDonald’s outlets in north and east India.

The reopened restaurants would provide “more customized” hospitality, “refreshed” menu boards, merchandising and packaging, said the statement.

The restaurants opened on Sunday include those at the Terminal-3 of the Indira Gandhi International Aiport, Connaught Place and Nehru Place, it said.

 

McDonald’s outlet reopens after solving ownership of Connaught Plaza Restaurants:

 

“All other restaurants remain closed, but are planned to reopen over the coming days and weeks as we complete the work needed to ensure customers receive the best possible experience when they visit us,” it said.

According to company, the work in the restaurants during the intervening period has been focused on a number of areas including restaurant and equipment maintenance, technology audits, menu and marketing updates and employee training.

 

McDonald, Connaught Plaza Restaurants, Fast food retailer, Business news

 

It, however, said: “We are also not able to offer delivery until we have more restaurants up and running to ensure we can service our usual delivery area.”

McDonald’s and Vikram Bakshi had signed a partnership agreement in 1995 to open outlets of the US food service retailer in northern and eastern India for a 25-year period and formed the joint venture CRPL, with both having 50 per cent stake.

In 2017, McDonald’s ended the franchise agreement with CPRL over non-payment of royalties which resulted in a legal battle eventually culminating in an out-of-court settlement earlier this month.

 

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Zomato acquires UberEats India for nearly Rs 2,500 crore

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New Delhi: Zomato on Tuesday announced that it has acquired Uber’s Food Delivery Business in India in an all-stock deal and Uber will have 9.99 per cent stake in the Deepinder Goyal-led food delivery platform.

According to sources close to the deal, it is in the range of over $350 million or nearly Rs 2,500 crore.

Uber Eats in India will discontinue operations and direct restaurants, delivery partners, and users of the Uber Eats apps to the Zomato platform, effective from Tuesday.

“We are proud to have pioneered restaurant discovery and to have created a leading food delivery business across more than 500 cities in India. This acquisition significantly strengthens our position in the category,” said Goyal, Founder and CEO, Zomato.

According to company sources, for the first three quarters of 2019, “our Uber Eats business comprised 3 per cent of our global Eats gross bookings, but was more than 25 per cent of our global Eats Segment Adjusted EBITDA losses”.

Uber started its food delivery service in India around mid-2017, but has not been able to scale up in the face of big players like Zomato and Swiggy.

It currently has nearly 26,000 restuarants listed on its platform from over 40 cities.

The market is piping hot as according to a recent study by business consultancy firm Market Research Future, the online food ordering market in India is likely to grow at over 16 per cent annually to touch $17.02 billion by 2023.

Uber CEO Dara Khosrowshahi said that the Uber Eats team in India has achieved an incredible amount over the last two years.

“India remains an exceptionally important market to Uber and we will continue to invest in growing our local Rides business, which is already the clear category leader,” said Khosrowshahi.

“We have been very impressed by Zomato’s ability to grow rapidly in a capital-efficient manner and we wish them continued success,” he added.

On January 10, Zomato had announced that it has secured $150 million in fresh funding from Ant Financial, a subsidiary of China-based giant Alibaba.

The latest round of funding in Zomato, which currently value the company at $3 billion, is part of $600 million funding round announced by Zomato CEO Goyal at a Delhi event last December.

The deal comes in the wake of merger talks between Zomato and Swiggy, whoch both the companies have denied to date.

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