Tech Startup sues McDonald’s for $900 million over broken ice cream machines

Photo of the article titled Broken Ice Cream Machines Could Cost McDonald's $900 Million

Photo: Noor Photo (Getty Images)

At this point, every honest ice cream junkie has had to contend with the crushing defeat of spirit of going to McDonald’s only to find an out-of-service machine laughing coldly at their anguish. Now, however, thanks to a new lawsuitAll those collective failures could cost the fast food giant close to a billion dollars.

The lawsuit was recently launched by Kytch, a California-based technology startup that has created a tool that allows ice cream owners to remotely monitor and control their machines and access diagnostics. Kytch claims that this tool allows owners to “prevent outages before the machine can detect the fault”. McDonald’s is, to put it simply, not a fan of Kytch’s solution.

In the lawsuit, Kytch accused the fast food giant of sending emails to McDonald’s franchisees advising them not to use the Kytch product, warning that it posed safety risks and that its use might violate the device’s warranties. Kytch disagrees with these allegations and is now seeking $900 million in damages from McDonald’s, who claim they used false advertising to defame and demean their company.

“Kytch introduces this measure to set the record straight, to defend the rights of the company Under civil law, to curb McDonald’s anticompetitive behavior, restore punitive damages and protect the consuming public from false and misleading advertising, and repair broken McDonald’s machines,” Kytch argued in the lawsuit.

The lawsuit also targets Taylor Co., McDonald’s main supplier of ice cream machines. Kitsch accused McDonald’s of giving Taylor a “monopoly“On machines and their repairs, claiming that the two companies” hold biweekly meetings dedicated to copying Kytch’s technology.” Kytch claims that this “profitable” arrangement, essentially opposed to competition between McDonald’s and Taylor, “generates millions of dollars in revenue for Taylor and her network of authorized distributors.”

Meanwhile, the founders of Kytch The insider said McDonald’s has irreparably “ruined” its business. McDonald’s did not immediately respond to Gizmodo’s request for comment, but it did tell Insider that the safety certificates included in Kytch’s complaints did not meet the company’s requirements for equipment in its restaurants. McDonald’s also stuck to claims that the Kytch program could lead to casualties in some scenarios and said Kytch’s complaint was unfounded.

Although this particular suit is new, the public outcry over broken McDonald’s machines is not. For years, angry customers Complaints to McDonald’s and on social media have been inundated demanding Explanations for the device’s dull performance. Public outrage has intensified to the point that the Federal Trade Commission It said I decided to step in and investigate last year.

There is even a site aptly called mcbroken, is intended only for tracking currently unused devices across the United States. At the time of writing, about 11.7% of McDonald’s machines are reported to be out of use, with New York City having the largest percentage of broken machines of any US city.

You can read the full complaint below.

See also  Exclusive clients appeal to major custody banks to stay in Russia

Leave a Reply

Your email address will not be published.