Name: Bay Area restaurant claims Grubhub listed it without permission, new suit says
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Bay Area restaurant claims Grubhub listed it without permission, new suit says

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Kendra Kolling started noticing Grubhub delivery drivers show up at her Sebastopol restaurant, the Farmer’s Wife, about two months ago. She didn’t sign up for the service, so she sent them away — but then new and even longtime customers started calling, upset about their missing Grubhub orders.“It’s led to very bad exchanges with customers who are, in the end, blaming me because I’m listed on Grubhub,” she said.The Farmer’s Wife and Atonia’s, a North Carolina restaurant, filed a lawsuit against Grubhub, arguing the practice misleads customers and harms restaurants’ reputations, and they are seeking class-action status. Delivery apps for listing restaurants on their platform without the restaurants’ knowledge after Pim Techamuanvivit of San Francisco Thai restaurant Kin KhaoMore specifically, the restaurants are accusing Grubhub of violating the Lanham Act, a federal trademark law, for using restaurant names and logos without permission. They filed the suit on behalf of more than 150,000 restaurants that were also listed on Grubhub without any prior agreements, or what Grubhub calls seeking more than $5 million in damages and the end to Grubhub’s conduct.“Under the Lanham Act, you’re not allowed to misrepresent to consumers that you have a business relationship with another business when you don’t,” said Steven Tindall, an attorney representing the restaurants.The issue has become so widespread that it will soon for apps to deliver food from restaurants without prior agreement. Gov. Gavin Newsom signed a bill, AB2149, in September that forbids the practice, and the law will go into effect Jan. 1.The lawsuit argues that such listings harm restaurants’ reputations by misleading diners into believing that restaurants agreed to work with the delivery app — and if the food doesn’t arrive on time or another problem arises, diners blame the restaurant instead of the app.Grubhub declined to comment because of the pending litigation.The Farmer’s Wife is known for its bursting with high-end, local ingredients. Yet Kolling discovered her restaurant’s listing on Grubhub displayed a menu of dishes the Farmer’s Wife has never offered, such as three fish tacos for $8.“My whole brand revolves around our food system and our food shed,” said Kolling, who is married to an apple grower. “For them to then steal and pirate my brand, my phone number and misrepresent me with some bogus shrimp platter is so insulting and so criminal and so unjust.”Kolling said she called Grubhub to remove the listing to no avail. By Tuesday afternoon, however, the listing was gone.When Grubhub was founded in 2004, the Chicago company included only businesses that specifically signed up for the delivery service. But in October 2019, the company revised its earning projections as it faced stiff competition from apps like DoorDash and Uber Eats — and its stock promptly plummeted by 40%. In response, Grubhub told stockholders it would begin listing many more new restaurants to attract customers. Within three months, it had added more than 150,000 restaurants, according to a company news release.Grubhub goes to great lengths to mislead consumers, the lawsuit argues. When a customer orders food from a restaurant that didn’t agree to be on Grubhub, for example, the order goes to a driver instead of the restaurant. The drivers then must order the food under their own name, pay with a Grubhub-provided credit card and avoid revealing they work for Grubhub, according to the lawsuit.Where to eat in the Bay Area. Find spots near you, create a dining wishlist, and more.Sometimes this can result in a canceled order if the restaurant realizes what’s happening, if the listed menu is inaccurate or if the restaurant doesn’t offer takeout.“There’s a negative experience for the customer, and sometimes the restaurant only learns of it when they read a Yelp review,” Tindall said.This class-action lawsuit is similar to California chain In-N-Out Burger’s suit against DoorDash in 2015 alleging trademark infringement. That lawsuit was settled and DoorDash no longer lists In-N-Out on its app.Kolling was shocked by Grubhub’s conduct during the pandemic, a time when restaurants are struggling to survive and chefs are working harder than ever.“If I can help anyone else in the same position as me, then it’s my civic duty to do it,” she said.Janelle Bitker is a San Francisco Chronicle staff writer. Email: Twitter:More for youWhere to eat in the Bay Area. Find spots near you, create a dining wishlist, and more.

Kendra Kolling started noticing Grubhub delivery drivers show up at her Sebastopol restaurant, the Farmer’s Wife, about two months ago. She didn’t sign up for the service, so she sent them away — but then new and even longtime customers started calling, upset about their missing Grubhub orders.“It’s led to very bad exchanges with customers who are, in the end, blaming me because I’m listed on Grubhub,” she said.The Farmer’s Wife and Atonia’s, a North Carolina restaurant, filed a lawsuit against Grubhub, arguing the practice misleads customers and harms restaurants’ reputations, and they are...

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Janelle Bitker

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Bay Area restaurant claims Grubhub listed it without permission, new suit says

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