By Gary Symons
TLL Editor in Chief
Sometimes licensing deals just go bad, and it looks like that’s the case for the partnership between YouTube star MrBeast and Virtual Dining Concepts.
The partners went into business to create a virtual restaurant chain called MrBeast Burger, but both parties have now filed suit against the other.
Currently the #1 individual YouTuber in the world with 171 million subscribers, MrBeast (aka Jimmy Donaldson) was the first to seek a legal remedy, suing the ghost kitchen company for hurting his brand by serving up “revolting” and “inedible” products.
MrBeast Burger orders are produced at 1,700 locations in the US, 40 in the UK, and several across Canada.
Despite that growth, MrBeast says the food from the restaurant under his name is getting terrible reviews, which in turn is ruining his own brand and credibility.
Some of his fans have posted images on Twitter, or X as it’s now known, of raw meat in their burgers. Customer reviews referring to their meals as “a terrible meme burger”, “disgusting” and “revolting” were included in the lawsuit. When TLL checked Google reviews at local MrBeast Burger outlets they came in at 2.8 out of 5 stars for one location, and just 2.2 for another.
The stinging reviews were certainly noticed by Donaldson, who told a fan that he was disappointed with MrBeast Burger. “Yeah, the problem with Beast Burger is I can’t guarantee the quality of the order,” Donaldson replied on X. “When working with other restaurants it’s impossible to control it sadly.”
Donaldson filed suit on July 31, saying the products being served up by VDC were “disgusting,” “revolting” and “inedible” and damaged his reputation.
He is asking the court to allow him to terminate the agreement, but Virtual Dining Concepts isn’t swallowing the attack on their quality without a food fight. The lawsuit claimed: “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 company countersued on July 7, claiming $100 million and alleging Donaldson and his company Beast Investments for failing to honor his contractual obligations, and for intentional tortious interference. VDC has also publicly criticized MrBeast, saying he not only breached his agreement, but tried to negotiate a new deal “to serve his own monetary interests” and “give up more of the brand to him to terminate his ‘existing contractual obligations without cause’.”
The company went further in its lawsuit, saying, “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. He is mistaken.”
The main issue for VDC is that Donaldson, who has many millions of followers, has publicly disparaged the quality of the MrBeast Burger chain in a number of Tweets (or whatever they’re called these days).
The complaint claims that Donaldson failed to comply with his contractual publicity and promotional obligations, failed to publicly support the brand and undermined it by making “untruthful or misleading” statements. The suit alleges that the massive YouTube star has made “disparaging comments” about MrBeast Burgers and VDC.
At one point Donaldson wrote, “If I had the ability to close it, I would have done so a long time ago sadly. Sometimes when ur young you sign shit deal.”
But bad deal or not, VDC is arguing that a deal is in fact a deal. “Like any party to a contract, Donaldson must be held to his word, and held accountable for his contractual breaches and other misconduct,” their countersuit states. “Donaldson’s baseless and unlawful disparagement had the intended effect: MrBeast Burger’s reputation was materially damaged if not destroyed, customers abandoned the Brand, Plaintiffs’ hard-won relationships with vendors, partners, and suppliers were shattered, causing damages to Plaintiffs that, according to the evidence and Donaldson’s own statements regarding the value of MrBeast Burger, are in the nine-figure range.”
But Donaldson says he has also suffered damages because VDC failed to produce a quality product, alleging it “has caused material, irreparable harm to the MrBeast brand and MrBeast’s reputation,” and claimed that while the business has made millions of dollars, he has “not received a dime.”
Virtual Dining Concepts was co-founded by Robert Earl, who is the founder and CEO of Planet Hollywood. VDC specializes in virtual kitchens and delivery-only concepts, partnering with food delivery services. The company has backed celebrity brands including those from Mariah Carey, Mario Lopez and DJ Pauly D.