GREENVILLE, NORTH CAROLINA, USA: YouTube sensation MrBeast aka Jimmy Donaldson has been rocked by a hefty counter-suit amounting to a staggering $100 million. Virtual Dining Concepts, the company responsible for the famed Beast Burger restaurants, is the source of the unexpected legal clash. This high-stakes legal drama developed shortly after Donaldson revealed on June 17 that he intended to gracefully step down from his position as the owner of the Beast Burger businesses.
Just two years ago, Donaldson and Virtual Dining Concepts teamed up for a big project. They created more than 2,000 "ghost kitchens" all over the United States, delivering delicious Beast Burger meals. The partnership that started out so well is now facing a problem. As per Bloomberg, Donaldson filed a lawsuit against Virtual Dining Concepts, accusing the company of damaging his reputation by selling undercooked burgers in July. In response, Virtual Dining Concepts fought against the lawsuit. They claimed that Donaldson's complaint was "riddled with false statements and inaccuracies."
Why is Virtual Dining Concepts suing MrBeast?
Virtual Dining Concepts, also known as VDC, along with its subsidiary Celebrity Virtual Dining, took legal action against Donaldson. They filed a lawsuit on a Monday morning, August 7, in New York. VDC responded to Donaldson's lawsuit by calling it "meritless" and "ill-advised." They also said that Donaldson broke his agreement with them before trying to make a new deal "to serve his own monetary interests," as per Forbes.
As reported by Variety, VDC has swiftly retorted with a lawsuit of substantial proportions. They're seeking damages that soar into the nine-figure range. Allegedly, the actions of the YouTube star have resulted in harm surpassing the staggering amount of $100 million.
“This case is about a social media celebrity who believes his fame means that his word does not matter, that the facts do not matter and that he can renege and breach his contractual obligations without consequence,” the lawsuit reads.
In the lawsuit, they claim that Donaldson didn't do what he was supposed to when it came to promoting their businesses. The lawsuit also claims that he made “disparaging comments” about MrBeast Burgers and VDC. These comments supposedly caused a lot of irreversible damage. The lawsuit hinted towards tweets that MrBeast posted and then deleted.
In their lawsuit, VDC claims that Donaldson's comments damaged MrBeast Burger's brand, as well as the reputations of their restaurant and the company as a whole. They contend that as a result, they lost clients, suppliers, and vendors. They claim that the cost of the damage is high—in the hundreds of millions of dollars.
The counter-suit came just a week after Donaldson sued VDC. The YouTuber reportedly filed a lawsuit after fans took to Twitter to slam him over the quality of the burgers. According to the evaluations cited in the petition, Donaldson's fans called the food "revolting" and "likely the worst burger [they] have ever had."
Donaldson's lawsuit read, “As a result, MrBeast Burger has been regarded as a misleading, poor reflection of the MrBeast brand that provides low-quality products to customers that are delivered late, in unbranded packaging, fail to include the ordered items, and in some instances, were inedible." Donaldson claimed that although he and his teams raised concerns about the food, Virtual Dining Concepts failed to address them.
When did MrBeast Burger start?
Amidst the challenges of the Covid-19 pandemic in December 2020, Donaldson embarked on the creation of MrBeast Burger, marking a significant venture. This journey was undertaken in partnership with VDC, cemented by an endorsement and services agreement extending over four years. Under this agreement, the operation of the delivery-only business would be expertly orchestrated by VDC, harnessing MrBeast's name, image, and persona to amplify the allure of the ghost kitchen and virtual restaurant.
Almost immediately, the restaurant witnessed a surge in popularity, earning the distinguished title of "the fastest-growing restaurant brand in the country," a testament to its swift success as acknowledged by Forbes. As time marched on, the restaurant's influence expanded, boasting an impressive 1,700 virtual locations by 2022, a fact underlined in Donaldson's lawsuit. Yet, amidst this backdrop of growth, a divergence emerges between Donaldson and VDC, each attributing the impetus for MrBeast Burger's rapid expansion to differing sources.
As the venture flourished, a concern emerged, with Donaldson contending that the expansion took a toll on quality. Within his lawsuit, he underscores the prevalence of "thousands of negative reviews" spread across the digital landscape. Contrasting this viewpoint, VDC's lawsuit emphasizes a different narrative. They draw attention to the feedback garnered on platforms like Uber Eats and Doordash during 2022, noting that an impressive "70% of customer reviews" bestowed the coveted 5-star ratings. This disparity in perspectives sets the stage for a deepening dispute.
