Ice Cream Machine Startup Kytch Sues McDonald’s for $900 Million

It seems Kytch’s phone-sized device was a safety risk and may cause "severe human injury.”



McDonald’s is being sued for $900 million by a startup, which created a device it said was designed to fix the chain’s perpetually broken ice cream machines. According to a lawsuit filed by Kytch on March 1, McDonald’s is accused of sending emails to franchisees alleging that Kytch devices violated the machines’ warranties and intercepted their sensitive information.

McDonald’s is also believed to have stated that Kytch’s phone-sized device was a safety risk and may cause “severe human injury.”

Kytch filed a long-awaited court action against McDonald’s late Tuesday night, accusing the firm of misleading advertising and tortious interference in its customer contracts. Melissa Nelson and Jeremy O’Sullivan, Kytch’s cofounders, are seeking at least $900 million in damages.

Kytch has been selling a phone-sized device that can be fitted inside McDonald’s ice cream machines since 2019. The Kytch devices would intercept internal communications from ice cream machines and transfer them to a web or smartphone interface, allowing owners to remotely monitor and solve the machines’ numerous flaws.

McDonald's Kytch

The startup’s allegations against McDonald’s center on emails issued to all franchisees in November 2020, asking them to quickly remove Kytch devices from their ice cream machines.

In a statement sent to Insider, McDonald’s said it “owes it to our customers, crew, and franchisees to maintain our rigorous safety standards and work with fully vetted suppliers in that pursuit. Kytch’s claims are meritless, and we’ll respond to the complaint accordingly.”

Following the discovery that Kytch’s unlawful equipment was being utilized at some McDonald’s locations, the fast-food giant issued a warning to franchisees about the risk of crew or maintenance staff injury. According to Kytch, this is due to the remote-operating system included in their soft-serve machines.

The safety certificates stated in Kytch’s complaint, according to McDonald’s, do not fulfill the chain’s stringent requirements for all equipment in its locations. McDonald’s said that there were a variety of possibilities that may result in injury, but that Kytch had not addressed them.

In a statement shared with Business Insider, the Kytch founders wrote that McDonald’s has “destroyed” its business, adding that “nothing can undo that damage.”

“McDonald’s worked closely with its soft-serve machine manufacturer, Taylor Company, to spread false information about our company, to drive us out of the marketplace, and to line their own pockets,” O’Sullivan and Nelson write in a statement.

According to McBroken, a website tracking the chain’s broken ice cream machines, 12.6% of machines are currently out of use, with 26.53% not working in New York.

Christy Gren
Christy Gren is an Industry Specialist Reporter at Industry Leaders Magazine she enjoys writing about Unicorns, Silicon Valley, Startups, Business Leaders and Innovators. Her articles provide an insight about the Power Players in the field of Technology, Auto, Manufacturing, and F&B.

Leave a Reply

Your email address will not be published.

Recent Posts

Broadcom bought VMware to Expand Its Footprint in Software

Broadcom bought VMware to Expand Its Footprint in Software

After the deal is finalized, VMware shareholders will elect to receive either $142.50 in cash or 0.252 Broadcom stock for each VMware share. Under the deal, Broadcom will also take
19 hours ago
Epic Games CEO Tim Sweeney Condemns App Store

Epic Games CEO Tim Sweeney Condemns App Store

Sweeney adds, “The problem here is a classic monopoly tie. You start with hardware. Apple makes smartphones and they profit from their smartphones — and they deserve to. But th
23 hours ago
An Unexpected Bolt: Fintech Unicorn Bolt Issues Lay off Notice

An Unexpected Bolt: Fintech Unicorn Bolt Issues Lay off Notice

The New York Post reported that the Bolt layoff will see restructuring across US, Canada and Europe. They expect that roughly one-third of the entire workforce will be impacted by
23 hours ago
Beeple Getting Hacked Resulted in His Followers Losing Over $438,000 in Crypto

Beeple Getting Hacked Resulted in His Followers Losing Over $438,000 in Crypto

Two tweets were posted using NFT artist Beeple’s account. The first one promoted an exclusive collection with Louis Vuitton. The second tweet announced that Beeple would soon rel
2 days ago
Microsoft Selling Metaverse to Kawasaki: It’s A Whole New World

Microsoft Selling Metaverse to Kawasaki: It’s A Whole New World

Microsoft’s corporate vice president of mixed reality, Jessica Hawk, recently told CNBC that the metaverse will change how people function across a variety of devices and platfor
2 days ago
Cryptocurrency Market Updates: Bitcoin Could Hit $500,000 Per Coin

Cryptocurrency Market Updates: Bitcoin Could Hit $500,000 Per Coin

On March 15, Novogratz went so far as to predict that the Bitcoin future price will reach half a million dollars per coin by 2027. He made this statement at the Bitcoin 2022 confer
3 days ago