MrBeast Sued for Over $100 Million by His Own Burger Company
Virtual Dining Concepts (VDC), the ghost kitchen company behind MrBeast Burger, has filed a countersuit against Jimmy Donaldson, popularly known as YouTube sensation MrBeast. VDC claims that Donaldson and his company, Beast Investments (BI), did not fulfill their contractual responsibilities, including promotional activities, resulting in significant harm to VDC’s reputation. According to Variety, VDC is seeking compensation exceeding $100 million for the damages caused.
“VDC alleges that Donaldson’s and BI’s actions have significantly damaged the reputation of MrBeast Burger and VDC, alienated customers and damaged hard-earned relationships with vendors and suppliers, harming the bottom line of hundreds of restaurants across the country and around the world and causing damages to VDC which, according to VDC’s evidence and Donaldson’s own estimates, are in the nine figures,” VDC told Nation’s Restaurant News in a statement.
Donaldson filed suit against VDC and its parent company last week. He tried to end his partnership with them by citing things like “disgusting” and “inedible” food. The original suit alleged that VDC caused “material, irreparable harm” to the MrBeast brand. Donaldson also claimed that VDC had generated millions of dollars in revenue, but he “hadn’t received a dime”.
In its countersuit, VDC alleges that Donaldson made “disparaging comments” against the company and MrBeast Burger. It quotes several of the YouTube sensation’s tweets (some of which appear to have been deleted), including claims that he wanted to close MrBeast Burger and that “the company I worked with won’t let me quit even though it’s terrible for my brand.”
“This case involves a social media celebrity who believes that his fame means that his words don’t matter, that facts don’t matter, and that he can renege and breach his contractual obligations without consequence,” VDC’s countersuit alleges. “He’s wrong.”
MrBeast Burger primarily uses the ghost kitchen format that VDC specializes in. Ghost kitchens do not have their own storefronts (although some operate out of existing brick-and-mortar restaurants) and only fulfill delivery or takeout orders. When the first physical MrBeast Burger location opened in New Jersey with Donaldson and his crew present last September, more than 10,000 people showed up.
