Abans PLC clarifies: Local McDonald’s franchisee not under its umbrella

27 March 2024 10:18 pm - 35 - {{hitsCtrl.values.hits}}

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In an attempt to set the record straight, Abans PLC today said the local franchisee of the US fast food giant McDonald’s is not a part of its umbrella.

In a filing to the Colombo Stock Exchange (CSE) today, Abans PLC pointed out that the local franchisee of McDonald’s is International Restaurant Systems (Private) Limited incorporated under the Companies Act No.7 of 2007.

The majority shareholder of the said company is Rusi Pestonjee who owns a 98.73% stake in that company, and who is also the Managing Director of Abans PLC.

“International Restaurant Systems (Private) Limited is not a subsidiary nor an associate of Abans PLC or its parent company Abans Retail Holdings (Private) Limited. Due to the said reason, the financials of International Restaurant Systems (Private) Limited are not consolidated with the financials of Abans PLC,” Abans PLC clarified.

Abans PLC said it is providing this information in terms of Section 8 of the Listing Rules of the Colombo Stock Exchange and for purposes of good governance.

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Comments - 35

Tissa Fernando Wednesday, 27 March 2024 10:36 PM

But these are two related parties. For all technical reasons this has been set up but those who manage both are same.

Financial Reporting is Not the Same Thursday, 28 March 2024 04:52 AM

Different accounting system. Person managing it might be same, but financial reporting is separated.

joshua Wednesday, 27 March 2024 10:44 PM

May not be Abans and same family member. No big difference.

Mahila Thursday, 28 March 2024 12:26 AM

Family member doesn't mean Same Management!?

Different Accounting System Thursday, 28 March 2024 04:47 AM

But it’s a different account system. So can’t name Abans as the main owner.

Paul Thursday, 28 March 2024 05:20 AM

A member can have stroke in many venture as an individual..if it is not run by Abans apLC it is not. Your brother can have shares in your family company and personally in another company in his own..if his own company gets bad reputation your family company run by a different set of individuals are not responsible for things they did not commit

Saajidh Wednesday, 27 March 2024 11:04 PM

Subsidiary or not - reputation down the drain.

Need to Emphasise Both Accounts are not Related Thursday, 28 March 2024 04:57 AM

Yup. Unfortunately the same person is managing both different entities. Only way for some damage control is to emphasise via the different media channels they are not related financially with one another.

Gt Thursday, 28 March 2024 12:01 AM

I was at mcdonalds some time ago sat in view of grill area, guy dropped my burger patty on floor, he then tried to finish the burger with it, I had to discretely call him over and ask him if that was for the burger I ordered he said yes, I said you can't serve that if its been on floor he said nono floor is clean, then I asked him to show underside of his shoe, I said all that crap on yoy shoe is probably on my burger, he said OK sry I'll make another one, then he thanked me for not telling manager( I didn't want him to get fired, people struggling these days), but I think it's down to management trying to cut down on wastage to maintain profit margins that made that guy try to give dirty burger, there are no health and safety standards anywhere, 2 times I've ordered kfc 1 burger had curly public type hair in it, 2nd time chicken drumstick had long hair cooked into it, profit over safety and standards is the issue, I've also had blackish chicken from kfc, think kfc is next

Ganesh Thursday, 28 March 2024 12:52 AM

The quality of service of All major fast food restaurants in Sri Lanka is way below standards. The Burger King at the airport is a damn rip off at US$18 plus the way food is handled there is less than desirable. Everywhere else in the world they provide you with ketchup sachets but at Burger King at the airport they give in small lids. McDonald’s is no better burgers are cold and greasy.

Mahila Thursday, 28 March 2024 01:11 AM

6.9 million Voters supported SLPP; MaRa the Messiah who borrowed beyond limits, resulting in Bankruptcy 03/2022 IS ONE and the SAME!!!??? So, 6.9 Mn., Voters responsible – SL Bankruptcy?

BOMBAY LOOKING CALCUTTA HITTING Friday, 29 March 2024 04:56 PM

Mahila, your comment above is not relevant to the SUBJECT matter above. What has the 6.9M people got to do with the ABANS response attempting to put the records straight?

Nimal R Thursday, 28 March 2024 04:32 AM

After all, why do we need McDonalds or Pizza Hut in Sri Lanka when they are considered as junk food. Pastries and other food available at outlets of Perera and Sons, Fab are not junk food. People should realise it.

Sara nadaraja Thursday, 28 March 2024 04:46 AM

Oh preplanned?

S.Dayan Thursday, 28 March 2024 04:48 AM

Useless statement. Majority in the country knows the association between Abans and McDonald's similar to other local franchisees of similar global fast food chains in Sri Lanka.

Managing director of Abans used to own local MacDonalds frachise has long had hygine problems Friday, 29 March 2024 02:36 PM

The ex-owner or ex-franchise holder of MacDonalds is a bad fellow to allow so much long known hygiene issues to happen. That man being a Managing Director of Abans makes Abans look like it is run by a bad man too. Abans better find a new Managing Director to save it's reputation.

What's the difference? Can someone explain? Thursday, 28 March 2024 04:50 AM

Abans Owner owns Mcdonalds franchise, not Abans itself. So confusing. I'm going to lose all my hair.

Dinruta Thursday, 28 March 2024 05:11 AM

Rusi, It’s irrelevant. Bottomline is you guys can’t maintain the hygienic standards of the lowest unhygienic restaurant in the world.

Nap Solo Sunday, 31 March 2024 08:05 AM

Rusi you should not be in the food business at all. Yes one of the most basic requirements in the production of food is maintaining a clean and hygienic surroundings and staff totally dedicated to personal hygiene.KFC is no better. They must make an effort to maintain the accepted standards laid down by the industry, particularly when it comes to food. The wrong people in the wrong trade makes it difficult to maintain and protect its reputation. They should cancel the franchise and impose a heavy fine to discourage food chains treating people like shit after paying such a high price for their crap.

Smh Thursday, 28 March 2024 06:52 AM

I remember growing up without a McDonald's in Sri Lanka and lived to tell the tale. Nowadays, people act like it is an essential service. Calm down. McDonald's closure is a blessing to your health and purse.

Flying Saucer Thursday, 28 March 2024 07:06 AM

What’s the matter, minor matter. One says “would you like fries with that?”. The other says “would you like flies with that?”

Ravi Thursday, 28 March 2024 07:33 AM

Legally the point is valid and McDonalds should have made sure of the real franchise!! But this kind of vile activity involving an internationally renowned company like McDonald does not reflect favorably on Sri Lankan business models and conduct. But, there is nothing new!! Like the political head, like private companies!! ( like father like son!!!)

Deepa Weerasekera Thursday, 28 March 2024 07:39 AM

What is important is NOT whether it is a part of McDonald’s International Restaurant Systems or the food giant McDonald. Most important issue is that the food of local McDonald (i.e Abans PLC) is UNHYGIENIC.

Jaya Kumara Thursday, 28 March 2024 07:48 AM

PR campaign to damage control. Well , Sri Lankan corporations and government can cheat poor under educated Sri Lankan , but they can’t fool international organizations and governments.

Yasasri Jayasinghe Thursday, 28 March 2024 07:57 AM

If the same individual who is managing the Abans owns 98.7% of the local operations of McDonald chain here, there's no point trying to separate Abans from International Restaurant Systems (Private) Limited. It's true under company law they are two different companies, but as customers we should be aware that same experience can be expected from both these companies .

wsw Thursday, 28 March 2024 08:33 AM

How convenient? Setting up an offshoot branch for obvious reasons then shirking from brand responsibilities when things go wrong. Quite frankly, it's collectively embarrassing for the image of SL as well, when it's local franchisee fails in it hygiene obligations. Foreigners may feel its a reflection on society.

Asanke Thursday, 28 March 2024 08:47 AM

In that case, you've disclosed misleading information in your annual report 22/23 (under the title "Abans milestones" in page 6). "Abans Restaurants Systems (Pvt) Ltd. - the first Sri Lankan retailer to franchise an international fast food restaurant chain, McDonald’s."

Adwani Thursday, 28 March 2024 08:58 AM

"The majority shareholder of the said company is Rusi Pestonjee who owns a 98.73% stake in that company, and who is also the Managing Director of Abans PLC" - Hold my Tail not my Nose.

UniDon Thursday, 28 March 2024 09:12 AM

This statement comes as no surprise. It illustrates how Abans conceals its unethical and deceptive business practices. Recently, I purchased a microwave from Abans' outlet at Bandaranayake International Airport while returning to Sri Lanka. Upon discovering that the oven was malfunctioning, I returned it to a local Abans outlet to be sent to their supposed repair center. Shockingly, the outlet manager claimed that the airport branch is not owned by Abans, despite being covered by a warranty card issued by them. This discrepancy has prompted an investigation by the Consumer Affairs Authority. I caution my fellow citizens of Sri Lanka to exercise caution when dealing with Abans, especially their airport outlet, which appears to be a dumping ground for faulty products of Abans.

anil Thursday, 28 March 2024 09:17 AM

Next might be Pestonjee is not part of Abans PLC, he coincidentally happens to be a family member holding 98% shares

My KFC Thursday, 28 March 2024 10:15 AM

Next can be KFC - Standard is Low

Erandani Dias Thursday, 28 March 2024 11:02 PM

Oh definitely. What a damned shame that Sri Lanka is showing the world it cannot maintain proper standards........and they think tourists don't read these things before they come?

D. Seneviratne Thursday, 28 March 2024 12:27 PM

It sound like "This child is not mine and only my husband's"

Michael Perera Friday, 29 March 2024 08:08 PM

Sri Lankans do not need the overpriced rubbish sold by McDonalds, KFC etc., Not only of poor nutritonal value but dangerously contaminated with hormone induced growth chicken meat. Only stupid rich Sri Lankans purchase these foods to show off to their friends.!!

Nap Solo Sunday, 31 March 2024 08:08 AM

VERY TRUE! Sub standard junk served under unhygienic conditions. Customer relations are horrible.

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Abans PLC clarifies: Local McDonald’s franchisee not under its umbrella

Comments - 35

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