MrBeast Burger: YouTuber sues food company over 'revolting' burgers - what are virtual restaurants?

YouTube's biggest star MrBeast is suing food company Virtual Dining Concepts, the company behind the eponymous fast food chain 'Mr Beast Burger', after he claimed their "revolting burgers" were harming his brand.

MrBeast, whose real name is Jimmy Donaldson, opened the virtual restaurant in 2020 shortly after a promotional stunt in which one physical location was opened in North Carolina and Donaldson gave money, prizes and free food to those at the drive-through. MrBeast Burgers have been available across North America and Europe, popping up on food delivery apps, with Virtual Dining Concepts facilitating the franchising of the brand.

However, MrBeast has now filed a lawsuit against the company following reviews from fans in which the burgers were branded "revolting" and "inedible". He previously addressed the criticism on social media, telling his followers on X, formerly known as Twitter, that he "can't get out of" the deal with Virtual Dining Concepts.

MrBeast is one of the biggest internet celebrities on the planet with more than 172million subscribers. His videos often feature elaborate games or pranks in which large sums of money are given away to those who take part.

What has MrBeast alleged in his lawsuit against Virtual Dining Concepts?

The legal action was filed in New York on Monday 31 July and laid out accusations that Virtual Dining Concepts has taken little care in ensuring that quality burgers are provided to customers. Donaldson is aiming to terminate the contract between the two.

According to examples given in the lawsuit, some customers received burger orders which "were delivered late, in unbranded packaging, fail to include the ordered items, and in some instances, were inedible". It added that "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 lawsuit said that MrBeast Burger and the issue reported "has caused material, irreparable harm to the MrBeast brand and MrBeast's reputation".

Donaldson has also alleged that he has "not received a dime" from the partnership with Virtual Dining Concepts despite MrBeast Burger generating "millions of dollars" since its launch in 2020. Virtual Dining Concepts is one of the biggest virtual restaurant businesses in the world, working with creators and stars such as MrBeast, Mariah Carey and Cake Boss star Buddy Valastro, currently boasting more than 3,000 virtual restaurants in six countries.

In a statement in response to Donaldson's lawsuit, Virtual Dining Concepts accused the YouTube creator of "bullying" and said that the company intends to counter-sue Donaldson in the dispute.

The statement read: "We had hoped Mr. Donaldson would act honourably. Instead, having elevated greed over his word and the truth, he will face the consequences in court when VDC (Virtual Dining Concepts) files its claims against him."

"When VDC refused to accede to his bullying tactics to give up more of the company to him, he filed this ill-advised and meritless lawsuit seeking to undermine the MrBeast Burger brand and terminate his existing contractual obligations without cause."

What is a virtual restaurant?

Virtual restaurants, also known as ghost kitchens, are fast food establishments that operate exclusively through delivery and pick-up orders via phone or app ordering. A virtual restaurant has no physical storefront and only operates from a bricks-and-mortar kitchen to prepare orders.

As a result, food brands advertised on food delivery apps may not actually exist as a physical entity and can often come from rented spaces or from the kitchens of another more established brand without any indication of a connection between the two. For example, you could be making an order for a curry from one 'restaurant' which has been made in the pizza kitchen of another restaurant without you knowing.

The popularity of virtual restaurants boomed during the Covid-19 lockdown, with fast food businesses having no need for a sit-in area for customers to physically visit and home takeaway deliveries skyrocketing in popularity. Kitchen spaces were often rented out to virtual restaurants in order for traditional establishments to recoup some of the losses incurred during the lockdown.

However, they have been criticised for misleading customers, some of whom may assume that they are supporting smaller businesses by ordering from a less well-known name instead of a high-street brand, despite the same company operating both 'restaurants' from the same kitchen.