Legal Clash Escalates: Burger Company Sues MrBeast For $100 Million After He Sued Them
The complaint was filed on Monday in response to MrBeast's claim against the virtual kitchen business, Virtual Dining Concepts. In 2020, the two will collaborate to develop MrBeast Burger.
A week after YouTube celebrity Jimmy Donaldson (aka MrBeast) sued his namesake virtual burger eatery, MrBeast Burger's parent firm filed a lawsuit against Donaldson and his Beast Investments. Virtual Dining Concepts handled MrBeast Burger's fulfilment and delivery and is suing for $100 million in damages. Variety was the first to break the story.
Donaldson allegedly failed to fulfil his contractual commitments, including PR and promotional activities, failing to publicly support MrBeast Burger, and making false and insulting statements, according to VDC. According to VDC, Donaldson's conduct caused "enormous financial harm" and harmed the burger restaurant's reputation.
Twists In The Burger Saga: Burger Company Sues Mrbeast For $100 Million After He Sues Them
MrBeast is suing the company that makes Mrbeast Burger and this is probably why ?... pic.twitter.com/TECyZZwcXb
¡ª The Crazy Gorilla (@TheCrazyGorilla) August 2, 2023
"This case involves a social media celebrity who believes that because he is famous, his word does not matter, facts do not matter, and he can renege and breach his contractual obligations without consequence."
"He is mistaken," says the suit. Donaldson and Beast Investments' attorneys did not immediately reply to a request for comment. MrBeast Burger operates mostly online through a network of "ghost kitchens" ¨C the branded food products can be ordered through meal delivery apps but are prepared in other existing restaurant facilities. MrBeast Burger has grown to 1,700 locations since 2020.
Donaldson filed a lawsuit against VDC last week to end the commercial connection with MrBeast Burger. His suit claimed that VDC neglected quality control issues, resulting in "inedible" cuisine that harmed MrBeast's reputation.
Twitter/@TheCrazyGorilla
The VDC lawsuit claims that Donaldson understood the MrBeast Burger brand was valuable and tried unsuccessfully to renegotiate a better deal in November 2022, February 2023, and June 2023. VDC alleges multiple examples of Donaldson "disparag[ing]" the business in the suit, including a tweet that reads, "If I could close [MrBeast Burger], I would have done so a long time ago, sadly." When you're young, you sometimes sign a bad bargain."
Credit: Getty Images
Outside of MrBeast Burger, there are so-called ghost kitchens. Still, Donaldson's MrBeast Burger was immediately buzzy ¡ª a physical site launched in New Jersey drew a crowd of 10,000 enthusiasts, and the business quickly grew. Donaldson has leveraged his massive online platform to launch other businesses, including a snack line called Feastables.
Credit: Getty Images
MrBeast Burger debuted in December 2020 and quickly grew to 1,700 outlets worldwide by the end of 2022.
Except for a single physical location, this burger firm operates as a virtual entity, utilising partner kitchens.
Virtual Dining Concepts, co-founded by Planet Hollywood's Robert Earl, focuses on virtual kitchens and delivery-focused concepts. They work with meal delivery businesses and have backed famous brands such as Mariah Carey's, Mario Lopez's, and DJ Pauly D's.
What do you think about it? Do let us know in the comments.
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