Colombo, Sri Lanka – McDonald’s has terminated its agreement with its local partner in Sri Lanka, resulting in the closure of all 12 outlets in the country, according to an attorney for the U.S. company. Sanath Wijewardane, the attorney, stated that the decision to end the agreement was due to standard issues. While the stores continued to operate for a few days after the cancellation, they have now ceased operations.
The local partner, Abans, declined to comment on the termination of the agreement. However, it has been reported by local media that McDonald’s took legal action against Abans over allegations of poor hygiene. The specific details of the issues leading to the termination have not been disclosed by Wijewardane.
Abans states on its website that it entered into a partnership with McDonald’s in 1998. This termination of agreement comes at a challenging time for Sri Lanka, as the country is recovering from a significant financial crisis.
While McDonald’s is no longer present in the country, Wijewardane suggested that they may consider returning with a new franchisee in the future.
The closure of McDonald’s outlets in Sri Lanka raises questions about the fast-food chain’s operations and franchising practices. This situation may prompt the company to review its standards and procedures for selecting and maintaining franchise partners.
It remains to be seen whether McDonald’s will be successful in finding a new franchisee to revive its presence in Sri Lanka. The company’s decision to terminate the agreement with Abans highlights the importance of maintaining high standards and addressing issues promptly in the fast-food industry.
In conclusion, McDonald’s has ended its agreement with its local partner in Sri Lanka, leading to the closure of all 12 outlets in the country. The specific reasons for the termination of the agreement have not been disclosed, but allegations of poor hygiene have been reported. It is unclear whether McDonald’s will return to Sri Lanka with a new franchisee in the future. This situation highlights the need for maintaining high standards in the fast-food industry.