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Chipotle Mexican Grill Inc. has filed a lawsuit against Sweetgreen Inc. in a California federal court, alleging that the salad chain’s new “Chipotle Chicken Burrito Bowl” violates its trademark rights. According to Chipotle’s lawsuit, Sweetgreens’ bowl is “very similar and directly competitive” and attempts to capitalize on the Chipotle brand. The lawsuit also stated that Sweetgreen’s product is likely to confuse consumers.
Sweetgreen’s stock price dropped by more than 11% after announcing the lawsuit. The company stated it knew of the lawsuit but would not comment on pending litigation.
In a press release issued on March 30, Sweetgreen announced the “Chipotle Chicken Burrito Bowl” as the latest addition to its menu innovation strategy. The company stated it was evolving beyond salads to introduce a bowl without greens.
Chipotle’s lawsuit alleges that Sweetgreen is using the word “Chipotle” in the same font and style as the Mexican food chain and using a background with Chipotle’s trademarked “Adobo Red” color to advertise the bowl. Despite receiving a cease-and-desist letter and a phone call from Chipotle’s legal department, Sweetgreen continued infringing on Chipotle’s trademark.
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In response to the lawsuit, Chipotle’s chief corporate affairs officer, Laurie Schalow, said the company would “take appropriate actions whenever necessary” to protect its trademarks. Chipotle has asked the court to issue an order blocking Sweetgreen from using the “Chipotle” name and requested an unspecified amount of damages.
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Chipotle suggested that Sweetgreen change the name to something that uses “chipotle in lower-case, in a textual sentence, to accurately describe ingredients of its menu item, “such as a “chicken bowl with chipotle.” However, Sweetgreen has not yet responded to the suggestion.
This lawsuit highlights the importance of protecting intellectual property in the food industry.
Trademarks are a vital asset for businesses in the competitive fast-casual dining market, and companies must take necessary measures to protect their brands. This legal battle between Chipotle and Sweetgreen will likely have significant implications for both companies and the broader industry. It will be interesting to see how it unfolds in the coming months.
