Kathmandu (AsiaNews) - The Unified Communist Party of Nepal (Maoist) or CPN(M) is defending itself from accusations that it is responsible for the closure of world famous US fast food outlets Kentucky Fried Chicken (KFC), Pizza Hut and Cream Bell in Kathmandu. The case came to the fore on 14 August, when Devyani International, which runs a chain of restaurants in Nepal and India, decided to shut down indefinitely its eateries because of "violent behaviour" by politicised employees and threats against management.
Sources say that management and employees started crossing swords a few weeks ago after officials from the CPN (M) led by Mohan Baidya pushed employees to form a trade union affiliated with the party. Management however refused to accept a union.
At the same time, would-be union officials rejected claims that they attacked or threatened management.
"There is a provision that states trade unions shall not be formed at international chains like KFC and Pizza Hut," said Tejendra Nath Shrestha, chairman of Restaurant and Bar Association of Nepal (RABAN). This is probably why management refused to accept a union.
In any event, "Closure of KFC and other international brand names has left a bad image among foreign investors," he added.
KFC and Pizza Hut were the first fast food eateries to open in Nepal in 2009. Together with Yum!, they represent the largest restaurant chains in the world.