Jimmy Donaldson, the YouTube celebrity known as MrBeast, is being sued by Virtual Dining Concepts (VDC), the ghost kitchen behind his eponymous burger business. The lawsuit was filed just one week after Donaldson sued VDC in an effort to end their partnership, citing customer complaints that their burgers were “revolting.”
VDC is now claiming $100 million in damages for Donaldson’s alleged breach of contract and “wanton conduct,” as Variety first reported, in its suit filed in the Supreme Court of New York yesterday (Aug. 7).
“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 complaint reads.
MrBeast’s spat with his burger company
VDC’s legal action is a response to Donaldson’s own lawsuit (pdf) against the company, filed on July 31, in which he called for a termination of their contract. The social media star cited customers’ reviews of MrBeast Burger, which have called its food “disgusting,” “inedible,” and “nasty.” He claimed that the negative response caused “material, irreparable harm to the MrBeast brand” and his reputation. His complaint also said that VDC was focused on rapid expansion, allegedly without heeding Donaldson’s calls for quality control.
VDC shot back, calling the suit “ill-advised” and “meritless” in a statement, as reported by Restaurant Business.
In the latest suit, VDC and its subsidiary, Celebrity Virtual Dining, alleged that Donaldson has not upheld his side of their bargain, causing its business “enormous financial harm.” It lists his public disparagement of their brand, failure to carry out promotional activities, and “making untruthful and misleading statements,” among several other contractual breaches. The complaint also cites several MrBeast tweets that openly drag his deal with VDC.
“If I had the ability to close it, I would have done so a long time ago sadly. Sometimes when ur young you sign a shit deal,” reads one now-deleted MrBeast tweet included in the filing.
Quartz contacted Donaldson and VDC for comment.
MrBeast Burger has been slammed on social media
Donaldson, the most-followed YouTuber in the world, launched MrBeast Burger with VDC in December 2020, following the pandemic trend of virtual, delivery-only kitchens. The business sold one million burgers within three months of launching, according to Donaldson’s complaint, and expanded to 1,700 virtual locations in 2022. The opening of the first physical store in a New Jersey mall in September drew a crowd of 10,000 people.
Eager as fans have been to get a taste of the burgers, they’ve been repeatedly disappointed on first bite. Photos online showed that some of the chain’s chicken patties and burgers were served while still raw inside, and that the food was delivered burnt or partially frozen.
VDC, which partners with other celebrities including Mariah Carey, Mario Lopez, and DJ Pauly D, was co-founded by Robert Earl, the CEO and founder of Planet Hollywood. His company Earl Enterprises owns several other restaurant chains, including Bertucci’s and Bravo Italian Kitchen.
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