A week after YouTube star Jimmy Donaldson (aka MrBeast) sued his namesake virtual burger restaurant, the company behind MrBeast Burger has filed its own lawsuit against Donaldson and his Beast Investments. Virtual Dining Concepts, which handled the fulfillment and delivery of MrBeast Burgers, is seeking $100 million in damages. The news was first reported by Variety.
VDC alleged that Donaldson didn’t deliver on his contractual obligations, including publicity and promotional work, failing to publicly support MrBeast Burger, and making untruthful and disparaging statements. VDC says that Donaldson’s actions have caused “enormous financial harm” and that the burger restaurant’s reputation was destroyed.
“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 suit reads.
MrBeast sued to get out of the deal, saying restaurants were serving “inedible” food
Attorneys for Donaldson and Beast Investments did not immediately respond to a request for comment.
MrBeast Burger operated largely online through of network of “ghost kitchens” — the branded food items are available for order via food delivery apps but are cooked in other existing restaurant facilities. Since 2020, MrBeast Burger has expanded to 1,700 restaurants.
The legal fight over MrBeast Burger began last week when Donaldson sued VDC to try to get out of the business relationship. His suit alleged quality control issues that VDC ignored, causing “inedible” food that’s hurt the MrBeast reputation.
The VDC lawsuit alleges that Donaldson knew the MrBeast Burger brand was valuable and attempted to renegotiate a more favorable contract in November 2022, February 2023, and June 2023, which were ultimately fruitless. In the suit, VDC lists several instances of Donaldson “disparag[ing]” the brand, including a tweet reading, “If I had the ability to close [MrBeast Burger], I would have done so a long time ago sadly. Sometimes when ur young you sign a shit deal.”
So-called ghost kitchens exist outside of MrBeast Burger, but Donaldson’s MrBeast Burger was immediately buzzy — a physical location opened in New Jersey attracted a crowd of 10,000 fans, and the business rapidly expanded. Donaldson has used his enormous online platform to get into other side ventures as well, including a line of snacks called Feastables.