08/23/2012, 00.00
Send to a friend

Pizza Hut and KFC close indefinitely fast food eateries in Kathmandu

by Kalpit Parajuli
The Unified Communist Party of Nepal (Maoist) is apparently to blame because it pushed employees to form a union. The company that runs the US-based chain of restaurants says politicised employees and threats against management led to the decision. Unions are not allowed in international chains.

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.


Send to a friend
Printable version
See also
Chinese workers for McDonald's, Kentucky Fried Chicken and Pizza-Hut are underpaid
Government announces nation-wide investigation in the wake of "bad meat" scandal
China-led RCEP free trade agreement is signed
16/11/2020 13:50
China and EU on the brink of trade war over shoes
EU accuses China of greater trade protectionism


Subscribe to Asia News updates or change your preferences

Subscribe now
“L’Asia: ecco il nostro comune compito per il terzo millennio!” - Giovanni Paolo II, da “Alzatevi, andiamo”