Salad-focused chain Sweetgreen Inc. has decided to rename a menu item, the Chipotle Chicken Burrito Bowl, to resolve a lawsuit from Chipotle Mexican Grill Inc. The lawsuit accused Sweetgreen of copying Chipotle’s popular burrito bowls. The item in question will be renamed to the Chicken + Chipotle Pepper Bowl as part of a tentative agreement to resolve the dispute. A Spokesperson for Sweetgreen said, “We are looking forward to putting this lawsuit behind us as we continue to connect more people to real food.” Chipotle, in a statement, said, “We are pleased that Sweetgreen has chosen to change the name of one of their bowls as part of an agreement to resolve the lawsuit filed by Chipotle.”
The lawsuit came as a shock to the fast-food industry, as the two chains have been compared as direct competitors. Both are known for promoting healthy and sustainable eating habits, as well as competing for the same younger and health-conscious demographic.
The lawsuit was filed by Chipotle in June 2019 in a Los Angeles federal court, accusing Sweetgreen of copying the look and feel of its popular burrito bowls. According to the lawsuit, Sweetgreen’s Chipotle Chicken Burrito Bowl copied “the distinctive style and design of Chipotle’s bowls” by offering similar ingredients, presentation, and packaging. The lawsuit also claimed that Sweetgreen’s marketing materials promoting the item infringed on Chipotle’s trademarks.
The legal battle between the two restaurant chains highlights the fiercely competitive nature of the fast-food industry, where restaurants must constantly find new ways to distinguish themselves from their rivals.
This is not the first time the two companies have faced off in court. In 2018, a California judge ordered Sweetgreen to pay Chipotle $10 million in damages for misleading customers about the use of antibiotic-free chicken in its restaurants. Sweetgreen later appealed the decision, and the case is currently pending.
The two companies had previously worked together in a partnership. In 2015, Chipotle founder and CEO Steve Ells joined Sweetgreen’s board of directors. The partnership seemed to signal a friendly relationship between the two companies, making the recent legal battle all the more surprising.
Despite the lawsuit, both companies have continued to experience significant growth in recent years. Sweetgreen, which was founded in 2007, has grown rapidly in recent years, with more than 100 locations nationwide. The company was valued at over $1 billion in a 2018 funding round, making it one of the few privately-held chains in the US with a billion-dollar valuation.
Meanwhile, Chipotle, founded in 1993, has been working to regain consumer trust after a series of food safety incidents that occurred between 2015 and 2017. The company has implemented new food safety measures and introduced digital ordering options, which have helped spur growth. Chipotle now operates over 2,500 restaurants worldwide and was valued at more than $35 billion in 2019.
As both companies look to resolve their legal dispute, it remains to be seen whether this will have any major impact on either company’s reputation or customer base. While some experts have suggested that the lawsuit could significantly damage the brand image for both companies, others argue that the issue is unlikely to affect customers’ perception of either brand in the long term. Ultimately, both Sweetgreen and Chipotle may be able to benefit from the press coverage of the lawsuit, as it potentially raises awareness of their respective products and attracts new customers.
In the fast-paced world of the fast-food industry, it is essential for companies to find ways to innovate and distinguish themselves from their competitors. This legal battle between Chipotle and Sweetgreen demonstrates that even when two of the largest names in health-conscious fast food can clash, it ultimately comes as a reminder of the importance of staying unique and inventive in order to remain competitive.
For now, it seems that both Chipotle and Sweetgreen are ready to move on from this legal saga and continue their mission to serve healthy, sustainable food to their customers. As the demand for healthier fast-food options grows, it remains to be seen how these two rivals will continue to innovate and evolve in a bid to stay ahead in the industry.
