Restaurants Battle Food Delivery Service Companies for Unauthorized Use of Trademarks

As technology continues to improve and innovate, the general public has now seen the rise of third-party mobile applications that allow for the delivery of meals to consumers’ doors even if that restaurant does not traditionally offer food delivery services.  Using their own delivery drivers, companies such as DoorDash, Grubhub, and Uber Eats have become the delivery middleman between consumers and restaurants.

At first blush, these services appear to benefit both restaurants and consumers.  Consumers now get to enjoy a wider variety of food options while staying at home, and restaurants benefit from having access to a wider variety of customers without having to employ their own drivers.  Yet a recent lawsuit filed by a New Hampshire restaurant conglomerate raises new issues about the interaction between these companies and restaurants.  

Restaurant Sues Food Delivery Companies for Unauthorized TM Use

Great NH Restaurants, a restaurant conglomerate that owns a variety of New Hampshire chains, filed a recent lawsuit against food delivery services companies DoorDash and Grubhub.  Alleging unauthorized use of their logos and menus, Great NH Restaurants is seeking a permanent injunction in addition to damages that would include profits that DoorDash and Grubhub made off of their restaurants.

In the lawsuit, Great NH Restaurants claims that DoorDash and Grubhub’s unauthorized use of trademarks and logos has occurred because both services will add the menus and logos of the restaurants even if there is no agreement to partner.  Specifically, Great NH Restaurants claims that while the services offer restaurants the choice to partner up initially, the services will go on to offer the restaurant’s menu through its mobile applications even if there is no agreement to do so.  Moreover, regardless of whether or not the restaurants agreed to use the food delivery services, DoorDash and Grubhub often copy the menus of the restaurants, including registered marks and logos, which can mislead consumers into believing that there is endorsement or agreement for use by the restaurants when no such agreement exists.

NH Restaurant Claims Food Delivery Services Can Create Reputation Issues

Great NH Restaurants has complained that, due to the way the delivery services operates, there is no way of knowing whether or not orders that come into the restaurants are from direct customers or from third-party delivery drivers, and as such, there is no way to determine whether the food delivery services are complying with requisite health and sanitary codes.  Similarly, the restaurants argue that they suffer from backlash or negative reviews when food items are delivered late or without proper care.  Without the requisite oversight, such actions ultimately result in damage to the restaurants’ reputation and the goodwill associated with their marks.

Additionally, Great NH Restaurants complains that even after requesting that their menus, marks, and logos be removed from DoorDash and Grubhub websites and offerings, the unauthorized content remains on the mobile applications’ content.  As such, Great NH Restaurants alleges that such unauthorized use of their registered marks is done to intentionally and willfully confuse or mislead customers into believing that the services are affiliated with or condoned by the restaurants. 

Key Takeaways from the Trademark Infringement Lawsuit Against Grubhub and DoorDash 

This lawsuit is part of the growing trend of restaurants suing third-party delivery services for unauthorized use of their marks and logos as a greater fight between the restaurants and food delivery services.  Restaurants allege that the third-party food delivery services are guilty of unauthorized use of their marks because:

• they copy full menus, images, and company logos;

• they refuse to comply with requests to refrain from use of third-party trademarks;

• they often do not have any contracts or actual agreements with the restaurants;

• the copying can mislead customers to believe the companies endorse each other; and

• their practice can harm the reputation of restaurants for services they don’t endorse and can’t control.

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