Sweetgreen, the popular salad chain, has changed the name of its latest menu item after a legal dispute with the fast-casual rival, Chipotle. The new menu item, named “Chipotle Chicken Burrito Bowl,” has been renamed the “Chicken + Chipotle Pepper Bowl” following a lawsuit filed by Chipotle that accused Sweetgreen of infringing on its trademark. Chipotle sent a cease-and-desist notice to Sweetgreen and asked the company to remove the word “Chipotle” from the menu item’s name. However, Sweetgreen failed to respond, and Chipotle filed a lawsuit in California federal court.
Tentative Solution to resolve the dispute
A representative for Sweetgreen stated that the name change (Chipotle Chicken Burrito Bowl) was part of a tentative agreement with Chipotle to resolve the legal dispute. The salad chain’s spokesperson further added that the company is looking forward to moving on from the lawsuit and focusing on serving customers. Both companies have agreed to resolve the matter, but no details of the settlement have been released.
Although it is still unclear when the name change (Chipotle Chicken Burrito Bowl) will come into effect, Sweetgreen’s website was still using the original name as of midday. Some customers even received promotional emails offering a 50% discount on the menu item under the original name to celebrate National Burrito Day.
Sweetgreen Stock Declines Due to Chipotle Chicken Burrito Bowl
Sweetgreen’s stock suffered a 6% decline on Wednesday after news of the lawsuit broke. However, the stock recouped those losses during trading on Thursday. The salad chain’s stock has fallen 14% in 2023, resulting in a market value of $821 million.
In comparison, Chipotle’s market value is significantly higher at $46.7 billion, with its stock up by 21% this year. As the legal dispute between the two fast-casual chains comes to an end, both companies can now focus on providing quality food to their customers.