For more crisp and insightful business and economic news, subscribe to The Daily Upside newsletter. It's completely free and we guarantee you'll learn something new every day.
This could go down as one of the most piquant legal clashes in corporate history.
Chipotle filed a lawsuit against Sweetgreen over an alleged trademark infringement on one of the salad slinger's latest menu items: the "Chipotle Chicken Burrito Bowl."
The Food Court of Law
Most customers expect some combination of rice, beans, proteins, veggies, and -- if they're splurging -- a side of guacamole when they're ordering at Chipotle. Sweetgreen, on the other hand, was served a cease-and-desist from the fast carne king's legal department on Tuesday after introducing the warm salad menu item last week.
Despite its likely popularity among your office cohort, Sweetgreen, with a market value of just $821 million, remains a pretty small pea compared to Chipotle's $46 billion empire (after all, salads don't exactly cross-appeal to city commuters, hungover college students, and calorie-starved high school athletes the way an overstuffed burrito does). Perhaps that explained why the salad chain wilted faster than baby spinach when faced with a spicy legal complaint:
- On Thursday, Sweetgreen opted to rename the salad the "Chicken + Chipotle Pepper Bowl," prompting the two sides to quickly resolve the lawsuit.
- "We are pleased that Sweetgreen has chosen to amend their materials in a manner that protects our trademarks and intellectual property," Chipotle's Chief Corporate Affairs Officer Laurie Schalow told Bloomberg.
Happy Holidays: The timing of the legal showdown -- and Sweetgreen's new menu item rollout -- is no coincidence. Thursday marked National Burrito Day, prompting both chains to offer a bevy of promotions, with Sweetgreen selling its newly renamed bowl for 50% off to most customers. Though we might suggest celebrating the occasion by patronizing your local taco truck.