There are only so many ways you can title and market a chicken bowl but Sweetgreen seemed to come a little too close to Chipotle’s innovative “Chipotle Chicken Burrito Bowl.”
Chipotle filed a lawsuit against the salad chain alleging trademark infringement, dropping Sweetgreens’ stock to fall 11% in afternoon trading on Wednesday, according to CNBC reports.
The bowl was first announced on Thursday, to which Sweetgreen co-founder and Chief Concept Officer Nic James said that the name was inspired by its “bold chipotle spices.” According to Chipotle, Sweetgreen received a cease and desist notice asking the company to drop the word “Chipotle” from the name but received no answer.
However, Sweetgreen claimed to have responded to Chipotle’s email but after the lawsuit was already filed.
Chipotle is also seeking profits from the earns that Sweetgreen receives from their chipotle chicken bowl.
“We don’t typically comment on litigation, but we will say generally that we’re committed to protecting our valuable trademarks and intellectual property,” Laurie Schalow, Chipotle’s chief corporate affairs officer, said in a statement to CNBC. “Consistent with that, we will take appropriate actions whenever necessary to protect our rights and our brand.”
Shares of the Sweetgreen company have fallen 24% in 2023, bringing its market value down to $726 million.
Chipotle, however, has had strong sales despite macroeconomic concerns. Their stock bumped up 22% in the same period, giving the fast-food chain a $47 billion value.
The future of Sweetgreen remains uncertain as its investors discuss the chain’s ability to become and remain profitable.
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