Operations

By Chloe co-founder files suit against the fast casual

Chloe Coscarelli seeks to reclaim her name after her court-ordered removal from the growing brand.

Less than a week after vegan fast-casual chain By Chloe secured a $31 million investment, the concept’s estranged co-founder has filed suit against its current owners for trademark infringement, among other complaints.

“Chloe Coscarelli is universally and widely known as Chloe,” reads the first line of the 129-page, 14-count complaint against BC Hospitality and ESquared Hospitality filed Monday in the U.S. District Court for the Central District of California.

Coscarelli, a former Food Network cupcake competition winner, was ousted from By Chloe last year after an arbitrator declared the TV chef had been “grossly negligent” in handling the brand’s business dealings.

By Chloe co-founder, Samantha Wasser, is the daughter of ESquared Hospitality CEO Jimmy Haber, also an investor in the concept. In the complaint, Coscarelli claims Haber retaliated against her after she rejected his “advances.”

By Chloe representatives have not responded to a request for a comment on the lawsuit.

Coscarelli also alleges in the suit that By Chloe’s quality has declined since her forced removal, harming her reputation since her name remains on the concept.

Coscarelli is seeking a jury trial in the case.

 

Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.

Multimedia

Exclusive Content

Financing

Despite their complaints, customers keep flocking to Chipotle

The Bottom Line: The chain continued to be a juggernaut last quarter, with strong sales and traffic growth, despite frequent social media complaints about shrinkflation or other challenges.

Operations

Hitting resistance elsewhere, ghost kitchens and virtual concepts find a happy home in family dining

Reality Check: Old-guard chains are finding the alternative operations to be persistently effective side hustles.

Financing

The Tijuana Flats bankruptcy highlights the dangers of menu miscues

The Bottom Line: The fast-casual chain’s problems following new menu debuts in 2021 and 2022 show that adding new items isn’t always the right idea.

Trending

More from our partners