Virtual restaurants countersue MrBeast claiming breach of contract

Update:

• Virtual Dining Concepts LLC and Celebrity Virtual Dining LLC filed a countersuit against MrBeast, also known as Jimmy Donaldson, claiming he breached his contract related to the MrBeast Burger brand and its virtual restaurant initiative.
• MrBeast originally filed a lawsuit against the pair, claiming the burgers they created were low-quality and hurt the MrBeast brand.
• However, Virtual Dining Concepts and Celebrity Virtual Dining allege MrBeast tried to force them to expand too quickly by opening 300 virtual restaurants after a successful pop-up launch in North Carolina, the countersuit claims.
• MrBeast then latched on to negative online comments and disparaged the brand, blocked access to joint social media accounts and tried to use leverage to get a better deal with Virtual restaurants, the countersuit in front of New York’s Supreme Court alleges.

MrBeast lawsuit overview: 

• Who: MrBeast’s Beast Investments LLC filed a lawsuit against Celebrity Virtual Dining LLC, Virtual Concepts Holding Inc. and Virtual Dining Concepts LLC. 
• Why: The popular YouTuber MrBeast claims Virtual Dining Concepts created a MrBeast Burger that was described as “disgusting,” “revolting” and “inedible.”
• Where: The MrBeast lawsuit was filed in federal court in New York.

(Aug. 07, 2023)

MrBeast’s Beast Investments LLC filed a lawsuit against the companies that it hired to create the MrBeast Burger, claiming that the burgers that Virtual Dining Concepts created were low-quality and hurt the MrBeast brand of the popular YouTuber whose real name is Jimmy Davidson.

The burgers were described by some who purchased them as “disgusting,” “revolting” and “inedible.” Despite numerous objections from MrBeast about the burgers, MrBeast’s complaints about quality control were ignored.

“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,” the MrBeast lawsuit claims.

One purchaser described the MrBeast restaurant burger as the worst burger they had ever eaten, according to the lawsuit.

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MrBeast has 172 million YouTube subscribers, the largest for any individual creator and is one of the most recognizable and valuable brands in the world, the MrBeast lawsuit says. So the burger quality issues at the MrBeast restaurant have led to MrBeast asking for compensatory damages, the ability to immediately terminate the contract and an injunction preventing the defendants from representing the MrBeast brand now or in the future.

“As the result of Virtual Dining Concepts’ failure to correct the serious problems with the customer experience and food products, MrBeast’s reputation and brand has, indeed, been materially and irreparably harmed,” the MrBeast lawsuit claims.

The company that runs MrBeast’s online store is facing a class action lawsuit claiming that the store is plagued with issues including overcharging customers and sending the wrong items.

Did you ever purchase a MrBeast Burger? Let us know in the comments.

The plaintiff is represented by Mara J. Wogan and Nicole Bergstrom of Frankfurt, Kurnit, Klein and Selz, P.C. along with Michael E. Weinsten and T. Wayne Harman of Lavely and Singer, P.C.

The MrBeast lawsuit is Beast Investments LLC v. Celebrity Virtual Dining LLC, et al., Case No. 1:23-cv-06658-MKV, in the U.S. District Court for the Southern District of New York.

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