Imitation may be the most sincere form of flattery, but it can also be grounds for lawsuits for fast food chain Chipotle.
Fast-casual restaurant chain Sweetgreen withdraws plans to add ‘chicken chipotle burrito bowl’ to menu after Chipotle sues, alleging menu items infringe Tex-Mex chain’s trademark rights Did.
of lawsuit“Adobo Red,” protected by the company’s trademark, was filed Tuesday in the United States District Court for the Southern District of California. Bowls that are “very similar and directly competing” are likely to confuse customers, the company said in its lawsuit.
On Thursday, Sweetgreen said it would rename the offending items and settle the lawsuit.
“In order to focus on our business and continue to serve our customers without distractions, we have decided to rename our bowls Chicken + Chipotle Pepper Bowls as part of a tentative agreement to resolve the lawsuit. “We look forward to ending this lawsuit as we continue to connect more people to real food,” the company told CBS Moneywatch in an email.
In response to this change, Chipotle has agreed to dismiss the lawsuit and said in a statement, “We are pleased that Sweetgreen has chosen to amend the material in a manner that protects our trademark and intellectual property. ” he said.
The chain’s first non-salad dish
The dish formerly known as the “Chipotle Chicken Burrito Bowl” appears at the end weekis Sweetgreen’s first non-salad menu. The company says it’s an important step in “the latest iteration of Sweetgreen’s menu innovation strategy” as the chain “evolves beyond salads.” The company says the bowl contains blackened chicken and rice, black beans, tomatoes, cabbage and salsa.
The bowl material was another issue in Chipotle’s lawsuit. The Chipotle complaint alleges that Sweetgreen’s burrito bowls contain similar ingredients to its own burrito bowl with chicken, rice, black beans and salsa.
It was not immediately clear if the ingredients would change as part of the settlement.
According to the lawsuit, Chipotle’s legal department sent a cease and desist letter and called Sweetgreen to discuss concerns about the company’s infringement. In a letter, Chipotle suggested that a competitor rename its new burrito bowl “Chicken Bowl with Chipotle,” with the word “Chipotle” in lowercase letters, according to the complaint.
Sweetgreen failed to respond and “immediate action is required,” according to the complaint.
Sweetgreen’s stock fell about 13% to $6.39 a share shortly after the Chipotle lawsuit was filed, but recovered to $7.41 on Thursday afternoon.
https://www.cbsnews.com/news/chipotle-sweetgreen-chicken-bowl-lawsuit/ Sweetgreen agrees to rename ‘Chipotle’ chicken bowls after Chipotle files lawsuit