MrBeast Burger, Ownership, History, Reception, Lawsuit and Location in 2024
MrBeast Burger, an American virtual restaurant, was established and created by internet personality Jimmy Donaldson (MrBeast), in collaboration with Virtual Dining Concepts, LLC.
Virtual locations can be found in North America and Europe, and there are intentions to broaden operations to additional countries and substantially grow the number of locations.
 | |
| Industry | Fast food |
|---|---|
| Founded | December 19, 2020 in Wilson, North Carolina |
| Founder | Jimmy Donaldson in partnership with Virtual Dining Concepts, LLC |
| Number of locations | 1 physical restaurant (2022) |
| Areas served |
|
| Products |
|
| Website | mrbeastburger |
The chains feature a menu consisting of various burgers, french fries, desserts, and canned beverages.
Customers order food from a delivery app, which in turn is prepared at the brick-and-mortar locations of contracted restaurants
History
Donaldson initiated the development of MrBeast Burger without a clear timeline, mentioning on his Twitter account that he had been contemplating the release “for forever”.
Hyde, a manager for Donaldson’s YouTube channel, indicated that the project had been in progress for several months, while Duchscher, another manager, stated that it had been in the planning stages for over a year.
The official Twitter account for MrBeast Burger was established on August 12, 2020, and locations started appearing on delivery apps days before the official launch.
The inaugural MrBeast Burger location was officially unveiled on November 10, 2020, in Wilson, North Carolina.
This location, temporarily transformed from a Burger Boy restaurant, served as the sole physical store.
In a YouTube video, Donaldson promoted free food and distributed money, gadgets, and even a new car to customers waiting in the drive-through line.
The event drew in thousands of customers, with the line extending up to 20 miles at certain points.
Despite efforts by the police to manage traffic, the line eventually became unmanageably long, leading to its closure at the request of the police department.
Donaldson shared a video of this event on his YouTube channel on December 19, 2020, officially announcing the chain’s opening with pop-up locations and contracts for 300 sites across the United States.
He also revealed that a portion of each order would be contributed to charities supporting global food security.
MrBeast Burger experienced a rapid surge in popularity following its announcement.
The video showcasing the burger quickly became the #1 trending video on YouTube, leading to the MrBeast Burger apps claiming the top spots on both the Apple App Store and Google Play Store.
The overwhelming demand for the apps resulted in server issues and temporary outages for some users, which were promptly resolved.
The immense popularity of MrBeast Burger led to nearly all of the 300 locations running out of food on the first night due to high demand.
On April 26, 2021, MrBeast Burger announced a collaboration with YouTuber Dream to introduce a limited-time Dream Burger, featuring two smashed beef patties, American cheese, lettuce, mayo, bacon, pickles, and smashed avocado.
On October 7, 2021, Christopher Hedgecock filed a class action complaint against Virtual Dining Concepts, alleging an overcharge of $3.16 on a Beast Style Burger Combo, which violated Oregon law prohibiting sales tax on fast food.
On March 18, 2022, Donaldson released a video on his MrBeast 2 channel titled “I Made 100 People Try This!”, unveiling the newest addition to the MrBeast Burger menu, the Shrek Quesadilla.
The quesadilla, featuring two beef patties, cheese, pickles, and onions, was made possible through a licensing agreement with Universal Studios.
Since the inception of MrBeast Burger, there have been plans to expand its locations.
In response to feedback from fans residing in areas without delivery service, Donaldson acknowledged the concern and mentioned ongoing efforts to significantly increase the number of locations.
The first Canadian locations were launched in early February, including Toronto, Edmonton, Calgary, and soon after in Vancouver, Halifax, and Winnipeg.
In the United Kingdom (UK), the first five locations opened in early May.
On August 30, 2022, Donaldson revealed plans to open a MrBeast Burger shop at the American Dream Mall in East Rutherford, New Jersey, near New York City, marking the first U.S. restaurant.
The restaurant officially opened on September 4, 2022, drawing a large crowd that required New Jersey state troopers to manage the situation.
Furthermore, the first Southeast Asian virtual location in the Philippines was established in partnership with JustKitchen Philippines and GrabFood on March 22, 2023.
MrBeast Burger currently operates over 300 virtual locations throughout the US mainland, including one in Puerto Rico. Expansion into Mexico took place in 2023.
Reception
Quality Concerns
Upon its launch, MrBeast Burger received a mixed response from customers.
Numerous individuals took to Twitter to express their opinions, with some commending the chain while others voiced their dissatisfaction with poor service and lengthy wait times.
Furthermore, there were allegations of raw food being served at certain locations.
While some customers attempted to directly contact Donaldson, the founder of MrBeast Burger, to convey their complaints, others defended him and shifted the blame onto the restaurants responsible for preparing the orders.
As the chain operates as a ghost kitchen, the food is cooked by the staff of contracted restaurants.
Consequently, the quality of an order can vary depending on the specific location it was ordered from.
Donaldson addressed these concerns on Twitter, acknowledging that they are not perfect and expressing a willingness to refund dissatisfied customers and rectify any issues.
Benefitting Struggling Restaurants
Amidst the COVID-19 pandemic, MrBeast Burger served as an additional source of revenue for struggling restaurants.
The chain offered a menu that could easily be incorporated into existing restaurant kitchens without requiring new equipment or extensive training.
One particular location outside Dallas reported earning over $7,000 on its first day of operation. While most MrBeast Burger locations are housed within Buca di Beppos, Bertucci’s, and Bravo! Italian Kitchens, other restaurants also have the opportunity to apply and become a MrBeast Burger location.
Lawsuit
On June 17, 2023, following a fan’s tweet questioning the removal of the MrBeast Burger announcement video, Donaldson responded by expressing his decision to shift his focus from MrBeast Burger to Feastables and snack production.
He mentioned his regret over signing what he described as “a bad deal” with Virtual Dining Concepts, LLC, and expressed frustration over the company’s insistence on continuing despite its negative impact on his brand.
Shortly after, Donaldson’s responses were deleted.
On July 31, 2023, Donaldson took legal action against Virtual Dining Concepts, the company behind MrBeast Burger, citing breach of contract.
His complaint highlighted his belief that the company failed to maintain the quality standards he had envisioned, emphasizing its prioritization of growth over product quality.
The filing also revealed that Virtual Dining Concepts had trademarked Mr. Beast without Donaldson’s knowledge, resulting in him not receiving any compensation from MrBeast Burger.
Virtual Dining’s legal team promptly refuted Donaldson’s claims, labeling them as containing “false statements and inaccuracies.”
They pointed out that Donaldson had recently attempted to renegotiate a new contract with the company.
The firm, represented by Greenberg Traurig, accused Donaldson of using “bullying tactics” to evade his contractual obligations without valid justification.
Virtual Dining expressed disappointment in Donaldson’s actions, accusing him of prioritizing greed over integrity and truth.
They warned that he would face legal consequences when Virtual Dining pursued claims against him in court.
The case is set to be heard in the United States District Court for the Southern District of New York, with a judge yet to be assigned.
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