MrBeast slapped with countersuit from Orlando ghost kitchen amid burger brand controversy: 'He is mistaken'
ORLANDO, Fla. - The Orlando-based dining company sued by MrBeast filed a countersuit this week, alleging the YouTube star is "mistaken" in his original claims and failed to keep his end of their contract.
Virtual Dining Concepts filed a countersuit in New York Supreme Court on Monday, claiming MrBeast, whose real name is Jimmy Donaldson, failed to honor his contractual obligations and engaged in tortious interference with damages allegedly exceeding $100 million, according to court documents obtained by FOX 35 News.
MrBeast originally filed suit against Virtual Dining Concepts on July 31, saying the company tarnished his brand and reputation by serving burgers that received complaints of being "disgusting," "inedible" and "revolting," while also claiming he hasn't received any payment despite the brand's significant earnings.
"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," Virtual Dining Concepts said in the lawsuit.
"He is mistaken."
EAST RUTHERFORD, NEW JERSEY - SEPTEMBER 04: Global YouTube star MrBeast poses with fans at the launch of the first physical MrBeast Burger Restaurant at American Dream on September 4, 2022 in East Rutherford, New Jersey. (Photo by Dave Kotinsky/Getty
Virtual Dining Concepts: MrBeast damaged our reputation
"(Virtual Dining Concepts) alleges that Mr. Donaldson's and (Beast Investments)’s actions have materially damaged the reputation of MrBeast Burger and (Virtual Dining Concepts), turned away customers, and shattered hard-won relationships with vendors and suppliers, damaging the bottom lines of hundreds of restaurants across the country and around the world, and causing damages to (Virtual Dining Concepts) that, according to (Virtual Dining Concept)’s evidence and Mr. Donaldson’s own estimations, are in the nine-figure range," the dining company said in a press release.
The restaurant company listed the following breaches of contract and other misconduct from MrBeast in the countersuit:
- Failing to comply with contractual publicity and promotional obligations
- Failing to publicly support the brand and, in fact, undermining it
- Making untruthful or misleading statements
- Denying access to and blocking jointly-owned social media accounts
- Making disparaging comments
- Failing to form one or more jointly owned entities
- Violating non-solication obligations
- Breaking the implied covenant of good faith and fair dealing
- Tortiously interfering with Virtual Dining Concepts' contractional relationships
- Tortiously interfering with Virtual Dining Concepts' prospective business advantages
Because of this, the Orlando-based business, who also works with brands like Pardon My Cheese Steak, Buddy V's Cake Slice and The Real HouseBowls, said their company has suffered "enormous financial harm," according to the lawsuit.
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MrBeast allegedly bullied Virtual Dining Concepts on social media, lawsuit states
Virtual Dining Concepts also alleges MrBeast bullied them on social media and threatened to terminate their contract if they didn't comply with his demands, the lawsuit states. That includes several tweets from MrBeast to his nearly 23 million followers that reportedly "sabotaged" MrBeast Burger and Virtual Dining.
Additionally, MrBeast and his team allegedly deleted posts shared by Virtual Dining Concepts on MrBeast Burger social media accounts and changed their passwords, the lawsuit states. The dining company said the inability to post on the brand's social media accounts led to a decline in sales.
Virtual Dining Concepts doesn't deny burger complaints
EAST RUTHERFORD, NEW JERSEY - SEPTEMBER 04: Customers eat at the first physical MrBeast Burger Restaurant at American Dream on September 4, 2022 in East Rutherford, New Jersey. (Photo by Dave Kotinsky/Getty Images for MrBeast Burger)
A big part of MrBeast's original lawsuit were customer complaints about the burgers sold at MrBeast Burger that in part allegedly tarnished his reputation and brand.
"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 lawsuit states.
Some people said that "it is sad that MrBeast would put his name on this" and the food is "Orlando's worst burger," according to the lawsuit. Others said the burgers were mostly just raw meat, while others advised others to not waste their money on "the absolute worst burger I've ever eaten in my entire life."
While Virtual Dining Concepts did not deny that there were complaints about the burger, they said it was the norm for any burger restaurant and the "overwhelming majority of customers were highly satisfied, and the product was excellent," the lawsuit said. The lawsuit also detailed ratings on third-party delivery apps like Uber Eats and DoorDash, saying out of 2 million orders in 2022, about 70% of them included five-star ratings.
Did Virtual Dining Concepts file trademarks without permission?
Virtual Dining Concepts went on to refute MrBeast's claims that they filed international trademarks without permission. The trademarks for MrBeast Burger are owned by both sides, according to the lawsuit. The dining company intended to assign the trademarks to their jointly-owned business, but Donaldson allegedly blocked the needed paperwork.
Read Virtual Dining Concepts countersuit
Read MrBeast's original lawsuit
Virtual Dining Concepts is seeking damages, plus interest, punitive damages and attorney costs.
MrBeast has not responded to the countersuit as of Thursday.