MrBeast takes legal action against fast food restaurant for serving ‘unpalatable’ burgers
YouTube sensation MrBeast, also known as Jimmy Donaldson, is facing a deteriorating partnership with Virtual Dining Concepts (VDC), the company behind his delivery-only fast food chain, MrBeast Burger. According to Bloomberg, MrBeast is taking legal action against VDC, accusing them of damaging his brand. The lawsuit claims that VDC prioritized rapid growth over maintaining quality, resulting in substandard food that negatively impacted MrBeast’s reputation. Seeking resolution, MrBeast is requesting a judge to terminate the licensing agreement and close down the business.
MrBeast points to numerous reviews calling the burgers “inedible,” “rebellious,” and similarly less flattering descriptions. “Thousands” of customers reportedly complained about raw meat, cold potatoes, missing ingredients and items that never showed up. Some places didn’t get the branding right and delivered orders in generic containers or even 7-11 bags.
Lawyers for the YouTuber claim that VDC either refused or was unable to fix the quality issues when contacted. He adds that he has not received “a penny” from MrBeast Burger, although he is owed royalties, and that the virtual chain often uses branding and registers trademarks without permission. VDC is allegedly reluctant to support brick-and-mortar startups because they cut into its profits. It uses the MrBeast name to lure other celebrities, according to the suit.
We asked VDC for a comment. MrBeast formed the partnership in 2020 when the COVID-19 pandemic forced many people to switch to delivery food. It was a way to help (and take advantage of) the fans and give restaurants more business at a time when dining in was not an option. MrBeast Burger would share its revenue with the hosts rather than compete directly with these brands.
The ghost kitchens will continue regardless of the outcome of the lawsuit. They allow entrepreneurs to open restaurants with only a small physical footprint and rely on delivery services like DoorDash and Uber Eats. However, the legal action shows what can go wrong at these outlets – without retail, they are not always subject to the same scrutiny as their traditional counterparts.