Following a lawsuit filed by Chipotle Mexican Grill, the popular salad chain, Sweetgreen is changing the name of its newly launched Chipotle Chicken Burrito Bowl to "Chicken + Chipotle Pepper Bowl." This comes as the two rival restaurant chains reached an agreement in principle to settle the lawsuit.
Last Tuesday, April 4, 2023, Chipotle filed a lawsuit against the salad chain, accusing the latter of trademark infringement. The lawsuit filed in the California Federal Court accuses Sweetgreen of several trademark infringement practices with regard to the new item.
Sweetgreen was accused of using Chipotle's brand name, introducing an item similar to a product already being offered by Chipotle, and using a very similar font and color scheme in marketing materials.
While the term "Chipotle" can sometimes refer to an ingredient - the dried and spicier version of the jalapeño chile pepper - it can also refer to the name and/or brand image of the fast-casual restaurant chain, Chipotle Mexican Grill. As such, the salad chain could have found itself in deep trouble following the lawsuit, however, it decided to simply settle it outside court by changing the name of the new offering.
Chipotle Mexican Grill and Sweetgreen are intent on putting the lawsuit behind them
From the launch of the new burrito bowl to a lawsuit and an agreement for a settlement outside the court, Sweetgreen seems to have faced all sorts of ups and downs in the last few weeks. As such, the effects of the same were visible in the salad chain's stock prices, as they closed down to around 10% on Wednesday after the lawsuit.
The lawsuit filed in the California Federal Court not only asked the court for an injunction against the salad chain but also asked for the profits that the salad chain would have earned from the Chipotle Chicken Burrito Bowl. However, the "tentative" agreement signed by the two rivals seems to have settled things for now. The two rival restaurants - Chipotle and Sweetgreen - seem intent on putting the issue of the lawsuit behind them.
Speaking to the press about changing the name of the salad to Chicken + Chipotle Pepper Bowl as part of the agreement to resolve the lawsuit, a representative for Sweetgreen said:
“We are looking forward to putting this lawsuit behind us as we continue to connect more people to real food.”
Pleased with the agreement, California-based Chipotle shared a statement, with a representative saying:
“We will continue our vigilance in protecting our intellectual property in the marketplace.”
Introduced to the salad chain's menu recently, the new "Chicken + Chipotle Pepper Bowl" is said to be having "an all-grain base, citrusy black beans, and house-made roasted chipotle salsa." With the legal troubles settled with the agreement, both restaurant chains are now offering Burrito Bowls to customers across the country.