McDonald’s Closes All Stores in Sri Lanka After Franchise Agreement Ends
McDonald’s Ends Agreement with Local Partner
McDonald’s has ceased operations in Sri Lanka following the termination of its agreement with a local partner. The closure of all 12 outlets in the country was confirmed by an attorney representing the U.S. fast-food chain.
Reasons Behind Closure
The decision to end the agreement was attributed to standard issues between the parent company and the franchisee, leading to the abrupt closure of the stores. The attorney, Sanath Wijewardane, mentioned the possibility of McDonald’s returning with a new franchisee in the future.
Legal Dispute and Store Operations
The agreement termination was finalized on Wednesday, although the stores continued to operate for a few more days. Reports suggest that McDonald’s took legal action against the local partner, Abans, due to alleged hygiene concerns, which was not elaborated on by Wijewardane.
Partnership History and Current Situation
Abans, McDonald’s local partner, had been in collaboration with the fast-food giant since 1998, as indicated on its website. The closure comes at a challenging time for Sri Lanka, which is still recovering from a severe financial crisis.
Impact on Sri Lanka’s Fast-Food Landscape
The exit of McDonald’s from the Sri Lankan market has significant implications for the fast-food industry in the country. With a population of 22 million, the absence of McDonald’s stores leaves a notable void in the culinary landscape of the island nation.
