• by Teresa Buyikian , August 11, 2023

There’s a new burger war in town—not between the big QSR chains, but between a YouTuber and a ghost kitchen parent company.

James Stephen Donaldson, AKA Mr. Beast, is a YouTuber with 175 million followers who attracted his fan base through videos of expensive stunts, challenges and philanthropy.

The 25-year-old influencer partnered with VDC (Virtual Dining Concepts, described on the company’s website as “connect(ing) the world's top creators with their fans through delivery-only restaurants”) in 2020 to launch the MrBeast Burger, selling the branded burgers and fries through delivery service apps and the MrBeast Burger website.

The MrBeast Burger has been sold out of 1,200 ghost kitchens worldwide, allowing restaurateurs to add a new source of revenue without impacting their existing operation

The relationship seemed problematic from the start. Yelp reviews have averaged two stars out of five, with online reviewers calling the food “average,” and Twitter users going as far as calling the new brand’s food a “scam,” “over-hyped and under cooked” and a “chum bucket.”

Cut to 2023, when on July 23, Donaldson filed a lawsuit against VDC to sever the relationship between the two entities, alleging VDC damaged his reputation by delivering “low quality,” “revolting” and “inedible” food to customers.

Donaldson tweeted, “The company I partnered with won’t let me stop even though it’s terrible for my brand. Young beast signed a bad deal.”

This week Los Angeles-based VDC fired back with its own $100 million suit, stating Donaldson’s lawsuit “meritless” and “ill-advised,” and claiming that Donaldson had breached his agreement with the virtual restaurant company. VDC also said Donaldson attempted to negotiate a new deal with VDC “to serve his own monetary interests” and his “existing contractual obligations without cause.”

“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,” the suit states. “He is mistaken.”

The suit also alleges that Donaldson has failed to comply with his contractual publicity and promotional obligations.