New Delhi: McDonald's outlets in Sri Lanka closed on Sunday. This action occurred as the international fast-food chain initiated a legal battle with its local franchise holder due to allegations of poor hygiene, as reported by the news agency AFP, citing court officials.


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The Commercial High Court of Colombo instructed the closures to continue until April 4. This was followed by the allegations from the parent company that the local franchisee did not adhere to international hygiene standards. (Also Read: Stock Market Holiday: NSE, BSE To Remain Closed Today For Holi)


"The closure was ordered pending an investigation," stated a court official according to AFP.  Moreover, he mentioned that lawyers representing McDonald's informed the court about the termination of a franchise agreement with the local company Abans the previous week. The hearing is set to recommence in early April. (Also Read: Public Sector Banks May Exceed Rs 15,000 Crore In Dividend Payout For FY24)


McDonald's and Abans have not provided immediate comments regarding the closure of the outlets. Abans has been holding the franchise for 12 outlets since McDonald's entered Sri Lanka in 1998.


Notices displayed outside McDonald's outlets on Sunday confirmed their closure, with no indication of when they might reopen. Interestingly, while a technology issue affected ordering at stores across much of East Asia last week, Sri Lanka's McDonald's outlets remained unaffected.