California-based In-N-Out burger sues DoorDash, saying the company’s delivery methods are hurting the restaurant’s brand.
California-based In-N-Out burger wants a delivery service to hold the beef and stop delivering their food to people’s doorstep.
The West Coast burger chain known for its special sauce has filed a lawsuit against DoorDash, saying the company’s delivery methods are hurting the restaurant’s brand.
The lawsuit, filed Nov.6 in U.S. District Court, cites concerns that DoorDash isn’t delivering food at the appropriate temperature and is violating copyright laws by using In-N-Out’s logo on its website and app. In-N-Out says it has no control of how the food is handled or how long it takes from purchase to delivery, which could turn off a customer.
“DoorDash is using our food and trademarks in a way that implies we have some kind of partnership or agreement with them, when that is not the case,” said In-N-Out’s general counsel Arnie Wensinger in a statement to the San Jose Mercury News.
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In-N-Out said that prior to filing the lawsuit it asked DoorDash several times to stop delivering its food but DoorDash never responded. DoorDash briefly stopped taking In-N-Out orders this spring but resumed a few months later with a fake logo advertising In-N-Out on its website.
Started in 2013, DoorDash delivers food from different restaurants in more than 250 cities nationwide through its website and smartphone app. Its CEO and founder Tony Xu said it was founded on the premise that the majority of restaurants don’t offer delivery.
Valued at $600 million, DoorDash charges customers a flat fee for delivery and typically negotiates a commission with restaurants for a portion of sales.
DoorDash has partnered with Taco Bell, 7-Eleven, KFC and other national brands to deliver food to hungry customers seeking convenience. For restaurants, adding delivery can boost sales and open the door to new business.
Unlike restaurants that follow strict food handling standards, on-demand startup delivery services like DoorDash are unregulated. But as more consumers demand any kind of food at any time, delivery services are expected to become even more popular.
