Blue Elephant International is closing its New Delhi restaurant this month because the venture has been poorly supported by successive franchisees.
Blue Elephant Royal Thai Cuisine restaurant opened in 1997 in the city's five-star Grand Hotel with Hilton International.
However, a succession of hotel operators, including InterContinental and Hyatt, has left the business marginalised.
Blue Elephant executive director Sherin Moody said: "We are unhappy about the way the restaurant had been left to trade on reputation alone without sufficient support."
Blue Elephant plans to re-enter India in the near future and is in talks with Marriott International. Moody said a likely location would be Mumbai.
by Chris Druce
Buy this week's Caterer magazine for more industry news and analysis