Social media star Jimmy "MrBeast" Donaldson is suing a Florida ghost kitchen company, alleging that the subpar quality of the burgers the business created in partnering with the YouTuber during the pandemic is hurting his reputation.
Donaldson launched MrBeast Burger in September of 2020 with the help of Virtual Dining Concepts, court documents state. Virtual Dining, drawing on the enormous popularity of Donaldson's YouTube channel, created 1,000 ghost kitchen locations in 2021 to quickly ramp up sales, according to the lawsuit.
"Unfortunately, however, because Virtual Dining Concepts was more focused on rapidly expanding the business as a way to pitch the virtual restaurant model to other celebrities for its own benefit, it was not focused on controlling the quality of the MrBeast Burger customer experience and products," the complaint states.
Donaldson, a North Carolina native who is also known for his philanthropy, has the third-most watched channel on YouTube, with more than 172 million subscribers. Time magazine named Donaldson one of the world's 100 most influential people in 2023.
The MrBeast Burger line, offered through food delivery apps like DoorDash, Grubhub or Uber Eats as well a dine-in restaurant in Rutherford, New Jersey, features burgers, chicken sandwiches, fries and chocolate chip cookies. According to the lawsuit, some customers have complained about how "disgusting, revolting and inedible" the burger has become since its launch. One customer described it as "likely the worst burger I have ever had," the suit states.
Donaldson is suing Virtual Dining for breach of contract, among other claims. Donaldson's suit, filed Monday in the U.S. District Court in the Southern District of New York, also alleges that he hasn't earned any money from the partnership in part because Virtual Dining trademarked the phrase "Mr. Beast" without his knowledge.
Virtual Dining dismisses the allegations. Donaldson's lawsuit "is riddled with false statements and inaccuracies, a lawyer for the company said in a statement to CBS MoneyWatch, claiming that the dispute stems from a failed contract negotiation between Donaldson and Virtual Dining,
"Mr. Donaldson recently attempted to negotiate a new deal to serve his own monetary interests," said Richard Edlin of Greenberg Traurig. "When [Virtual Dining Concepts] refused to accede to his bullying tactics to give up more of the brand to him, he filed this ill-advised and meritless lawsuit seeking to undermine the Mr. Beast Burger brand and terminate his existing contractual obligations without cause."
"The alleged basis for Mr. Donaldson's complaint is that his reputation has been 'materially and irreparably' tarnished by the Mr. Beast Burger brand," Edlin added. "In reality, Mr. Donaldson's notoriety has grown exponentially over the life of the Mr. Beast Burger brand."
Khristopher J. Brooks is a reporter for CBS MoneyWatch covering business, consumer and financial stories that range from economic inequality and housing issues to bankruptcies and the business of sports.
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