Topline
Salad chain Sweetgreen is changing the name of its “Chipotle Chicken Burrito Bowl” after Chipotle Mexican Grill sued for alleged copyright infringement, the companies said, in a resolution to a high-profile feud between the fast casual dining companies.
Workers prepare food at a Sweetgreen restaurant in Bethesda, Maryland on October 28, 2010. … [+]
Key Facts
Sweetgreen said it will change the bowl’s name to the “Chicken + Chipotle Pepper Bowl,” which Chipotle told Forbes is an acceptable outcome to resolve its lawsuit.
Chipotle filed a complaint against Sweetgreen on Tuesday, arguing Sweetgreen’s recent menu change to add the new bowl was a trademark infringement, as well as trademark dilution and a deceptive trade practice.
Sweetgreen said in a statement it made the name change “as part of a tentative agreement to resolve the lawsuit,” stating it wants to “continue serving our guests without distraction.”
Sweetgreen’s share price rose more than 8.6% to $7.49 on Thursday after dropping more than 12.5% between Tuesday’s market open and Wednesday’s close on unusually high volume.
Crucial Quote
“We are looking forward to putting this lawsuit behind us as we continue to connect more people to real food,” Sweetgreen said.
Contra
The “Chipotle Chicken Burrito Bowl” still appeared on the menu at some Sweetgreen locations Thursday, while the company also promoted the item in an email Thursday morning for National Burrito Day.
Key Background
The novelty of a lawsuit between two publicly traded companies over the name of a burrito bowl attracted significant news coverage and social media attention—especially since both companies largely target the same audience through similar food offerings, though Chipotle focuses on burritos and burrito bowls, while Sweetgreen is more salad-centric. Both Chipotle and Sweetgreen heavily promote what they say is a fresher food alternative compared to fast food chains—a trade-off for consumers since their menu options are typically more expensive than hamburger-focused drive-thrus. Chipotle is the far larger of the two chains, operating thousands of locations across all 48 states in the continental U.S., while Sweegreen has about 200 locations in 16 states.
Further Reading
Chipotle and Sweetgreen have beef over a chicken burrito bowl—now it’s going to court (NPR)
Chipotle Sues Sweetgreen Over Its New Burrito Bowl (Wall Street Journal)
Source: https://www.forbes.com/sites/nicholasreimann/2023/04/06/chipotle-wins-burrito-bowl-battle-sweetgreen-renames-item-that-prompted-lawsuit/