This report examines how the unforeseen decline of MrBeast Burger resulted in legal actions and lawsuits.
MrBeast Burger, a YouTube-owned ghost kitchen QSR, was launched in 2020 and initially had a lot of success. However, the brand was unable to keep up with the consumer demand, which led to inconsistent output leaving consumers unsatisfied.
Scope
As most of the food was cooked by third-party kitchens, food quality was very inconsistent, which ultimately meant consumers stopped returning.
As the company was launched during COVID-19, takeaways were much more popular. Consumers ordered food from delivery services 15% less in Q2 2023 compared to Q1 2021.
MrBeast Burger entered an overly saturated market with a lack of any differentiation.
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Appendix
A selection of companies mentioned in this report includes, but is not limited to:
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