MrBeast files lawsuit against the company behind his burger chain

Jimmy Donaldson wants to move on from MrBeast Burger, but to put his ghost kitchen venture behind him, he may need a court order. The man known as MrBeast has sued Virtual Dining Concepts, which partnered with him to launch a fast food brand in 2020.

In a lawsuit filed in the Southern District of New York, Donaldson’s team claims that Virtual Dining Concepts harmed the integrity of the MrBeast brand by prioritizing growth over customer satisfaction. MrBeast Burger popped up amid COVID-19 lockdowns in 2020 and was an immediate hit among the creator’s isolated fans. But as the chain grew, the quality of its food went downhill. The legal complaint — which lists Beast Investments as the plaintiff — includes several one-star reviews and a photo of a burger that was still raw when it arrived at its destination.

“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 reads. “This is despite numerous objections by MrBeast, whose complaints about quality control fell on deaf ears.”

By suing Virtual Dining Concepts, Donaldson is hoping to secure a court order that would allow him to shutter the MrBeast Burger brand. In June, YouTube’s most-subscribed individual creator tweeted about his desire to close the chain, citing quality control as a major issue. Going forward, he plans to invest in the food and drink sector through Feastables, a snack brand he launched in January 2022.

Days after making that comment, Donaldson tweeted that “the company I partnered with won’t let me stop” the MrBeast Burger brand because “young beast signed a bad deal.” That tweet has since been deleted.

For Virtual Dining Concepts, there are plenty of reasons to keep MrBeast Burger alive. By establishing 1,000 virtual locations during the first year of the chain’s operation, Florida-based VDC improved its own fortunes, raising a $20 million Series A round in 2021.

That rapid expansion came at the expense of Donaldson’s personal brand, according to the complaint. As diners blamed MrBeast Burger’s namesake for the poor quality of the chain’s food items, Virtual Dining Concepts continued to use Donaldson’s likeness to promote the brand.

That decision, according to the lawsuit, came without Donaldson’s approval. The complaint shares a few lines of the MrBeast Burger contract, which stipulates that “All of [MrBeast’s] Attributes utilized under this Agreement, and all uses of Talent’s Attributes, shall be subject to the prior, reasonable approval of Licensor.”

The complaint also details the differing opinions between the MrBeast team and Virtual Dining Concepts regarding brick-and-mortar MrBeast Burger locations. Donaldson saw those spaces (one of which currently exists) as opportunities to implement strong customer service standards. But according to the complaint, Virtual Dining Concepts “dragged its feet” on that effort as it continued to pursue rapid expansion.

Donaldson and his team are request a jury trial in hopes of resolving the dispute. Virtual Dining Concepts has not yet offered a public comment on the matter.