There is couple of fundamental difference to Unilever example:
1. Similar sounding names to existing brand is trademark infringement. Here this particular entity is deliberately copying the restaurant names to mislead people into selecting them (when original restaurants are closed).
2. Assumption is Unilever creates different brands with same exacting manufacturing standards, and it stands behind them (packages will follow federal labeling guidelines). It is for A/B testing of brand collaterals (name, packaging graphics, colors, copy etc.). Here obviously that is not the case.
It is very obvious that deception is the end goal, so really don't understand "why not" remark.
Reputation is a core concept in building trust in human relations, that we have subconsciously transferred to brands.
Since the dawn of time, both humans and brands are trying to fake their reputation. For instance in the old days, when communication wasn't as fast, con artists used to travel a lot, allowing them to start over after ruining their reputation.
I think for many of us it gives an innate sense of disgust because it goes agains the core of human relationships.
I agree with the parent, there is a lot of similarity here. You may be right that cloud kitchens are more haphazard and veer into challengeable trademark infringement. Old giants like Unilever tend to be better at legal precision.
Besides that, they're both doing the same thing. They're using brands to obfuscate, artificially manage reputation, or achieve basic marketing goals... not tell consumers who they are buying from. It's all deceptive. Fake choice, fake competition, fake diversity. It's all abusive of trademarks. Trademarks are intended to help consumers know what they're buying, create some reputational accountability. Typical FMCG strategies, like unilever and these cloud kitchens, are all about neutralising this... allow them to enjoy positive reputation while neutralising the negative reputation.
All of this is standard strategy, used often. For example. You are going for a "normal" supermarket experience: Many options for cereal, cheese, detergent, etc. Choice. But, you still want 70% cereal market share to go to vendor A. Maybe it's an internal vendor. So, fake branding. Fake diversity. Create the experience without creating the experience.
As Cloud restaurants become a mature, they'll probably learn to avoid legal trouble. But, the game will still be the game. It's not cheating if you're drunk.
The post, for example, wants to know which brands represent which kitchens. He doesn't want food from the bad kitchens. Tightening up trademark infringement will not help him.
Can you define that difference? Wingstop and Thighstop for instance are incredibly close and not enough to trigger regulatory enforcement. There is the side note that they are owned by the same entity, but do regulators know that for a fact before they decide no to enforce penalties for what you are claiming is trademark infringement?
>2. Assumption is Unilever creates different brands with same exacting manufacturing standards, and it stands behind them (packages will follow federal labeling guidelines). It is for A/B testing of brand collaterals (name, packaging graphics, colors, copy etc.). Here obviously that is not the case.
> Assumption is Unilever creates different brands with same exacting manufacturing standards...
Where did this assumption come from? That's a claim without any backing as far as I am aware. Do you honestly believe they only make different brands because they are testing how the sound of the brands name affects sales? Nothing around compartmentalizing the risk of them causing some backlash by cutting corners or getting people ill, and the ability to just cut off that one brand rather than their entire product line?
>It is very obvious that deception is the end goal, so really don't understand "why not" remark.
It is literally the opposite to me. It feels like deception is the main goal unless they make the "Product of X Conglomerate" a larger part of the packaging than the brands label, and not the minimum size required by law, or if its legally allowed, omitted entirely from the label
Yum! Brands owns both, and Pizza Hut, Taco Bell, KFC, etc. The restaurants themselves are owned by franchisees who license the trademarks (and all kind of complicated buy-in and standards).
Yum! Brands made ThighStop to address the wing shortage and keep the association/credibility. It’s actually weirdly transparent: just like WingStop, but thighs. I don’t know if WingStop franchisees got automatic rights to that brand or not. My guess is that it was just a way to keep them afloat.
Now, the fact that WingStop has any cred is gross. I can get better wings from a mom & pop or local chain at any strip mall, or heck, a gas station than wing chains like them, BWW, etc.
I guess America outside the South and Buffalo, NY doesn’t have access to wings that don’t taste like a salt lick. It’s a tragedy.
As far as I know -- and I've double-checked this just now -- Yum Brands does not own Wingstop (which doesn't capitalize the "s", even though we all do it automatically). They own "Wing Street", which is a sub-brand of Pizza Hut. Wingstop is an independent publicly-traded company.
Wingstop created Thighstop as a "digital brand" -- essentially, a ghost kitchen run out of existing Wingstop locations. This is a trick that a lot of chain restaurants started doing since the pandemic. Denny's runs "The Meltdown" as a sandwich shop; Chili's runs "Wings & Things"; you can find others. You can only order from "Thighstop" online, but you can add a thigh to combos when you order from Wingstop if you're so inclined.
(And I have not lived in Buffalo, New York, but I have lived in the South -- and California -- and can assure you there are many "mom and pop" wing shops and local chains that…aren't great.)
Definitely some are not great, I can name 3 within a mile of me I won't go to. And some are "sketchy" but delicious. But that also applies to barbecue, mexican, catfish, etc. around me. Just look where the locals go. If there's a line at an unexpected place, it's probably good. But if it's around a college campus, it may just be cheap :).
Or you make them at home. Which is very straightforward.
This is no more fraudulent or shady than Apple having a brand called “MacBook Pro” and another one called “MacBook Air”.
> If they decide not to pursue action due to infringement
This is kind of a bizarre thing to say... they are the same company, so there is just not universe in which Wingstop would sue itself.
The regulator doesn't pursue trademark infringement cases. It is upon the trademark holder to defend their mark via proceedings. So WingstopCo would bring an action against ThighstopCo. In this case, since both marks are held by the same entity, there's no enforcement possible unless the holding entity an exclusive license to one of the marks to another party.
I've been told that trademark proceedings have to be initiated by the holder, and that the holder failing to do so is how certain phrases can become common names for a thing: https://en.wikipedia.org/wiki/List_of_generic_and_genericize...
But IANAL.
> Can you define that difference? Wingstop and Thighstop for instance are incredibly close..
The author of the blog clearly identified the modus operandi. He makes a very compelling case (he obviously understand the local context, can intuit things based upon the fuzzy dataset which is result of his experiencing the system over time.. etc.).
> Where did this assumption come from? (Unilever has exacting manufacturing standards) That's a claim without any backing as far as I am aware..
The knowledge of how world works and is typically built if one is curious enough. https://www.unilever.com/news/news-search/2022/shining-a-lig...
Yes. Yes they do. Absolutely, 100%, regulators know that Wingstop and Thighstop are owned by the same entity. They know this from regulatory and administrative filings, and they know this from the advertising that could not possibly be more clear that these are the same company.
Here, Rick Ross can explain it to you in no uncertain terms: https://www.youtube.com/watch?v=nTx4YuMa3cQ
Well, yes? Regulators would determine both are owned by the same entity, at which point there would be no enforcement penalty to apply.
I can define the difference clearly: "whatever a court decides"
The law is intentionally fuzzy, and in the case of trademark, it's whether the names are "likely to cause consumer confusion", which is an obviously fuzzy thing that cannot be encoded in a computer or with a set of string matching rules. Which is fine, our legal system has humans in it.
If the companies are doing so with the specific intent of causing consumer confusion, then it seems like the court would have a relatively easy time at showing that such an occurrence was likely.
My point was that similar sounding names are not automatically infringement because they need a court to decide that the similarity doesn’t matter. I explicitly pointed out two similar sounding restaurant names owned by the same entity because either they were assumed to be IP infringement until a court decided they were not, or courts didn’t get involved by default for similar sounding names.
The whole point was to make a reductio ab absurdum argument that similarity of names did not matter in terms of IP until courts were involved, so bringing it up as a reason that ghost kitchens couldn’t make similar names a silly argument to make sans lawsuits
They absolutely don’t. Given brand of laundry detergents can be quite different between neighboring Poland and Germany, with the only visible difference being the set of languages on the label.
The cloud kitchen model is more akin to putting lipstick on pigs...
I hardly ever eat out because the cost and hassle compared to the food is far, far from being a reasonable trade to me. On a daily basis, I don't want "fancy" plates of food creations, just simple but fresh and relatively healthy food like I would (or, rather, do) make for myself.
However, having a kitchen churning out fresh food, a bit like a canteen but with a delivery step (doesn't have to be direct, a "round" would work too as long as the food stays approximately fresh and arrives within a reasonable slot).
There's no need for this to happen in a restaurant with tables and tills. The most efficient system is probably a big central kitchen and a bunch of electric delivery vehicles. The economies of scale that such an operation could bring over me buying a few portions at a time, slicing single cucumbers and heating my little oven or pans to cook a few items day in day out seem like they could plausibly be favourable to outweigh the downsides (cost of delivery, lack of control over the food ingredients, quality, portion size etc).
Of course such a system, if it became dominant over others would probably very quickly fall victim to MBA syndrome as corners are cut and it ends up being school/prison slop (with a much much more expensive premium option that is basically what we already have).
And I imagine people don't like the idea of a "remote canteen" vs the romantic idea of a chef lovingly assembling a dish and carefully handing it to a courier.
So my options are to do it myself or pay multiples.
But that's all not an excuse to hide behind a fleet of faux-boutique identities. When you do that it's borderline scam. Or not borderline at all, once you accept that most of the money we spend on getting food cooked for is not about the calories and not even about the taste.
> But that's all not an excuse to hide behind a fleet of faux-boutique identities.
Absolutely agreed. And of all places I won't use once they've demonstrated untrustworthyness, food providers are top of the list.
Not only is what you do (and don't) eat rather important, but also it's something that I can actually do myself.
If I don't trust CPU manufacturers not to backdoor my computer, I have limited options. If I don't trust a restaurant, I can pan fry my own tofu.
Also classic diner food is generally pretty inappropriate for using more than a few times a month because it's not very good for you.
It's more like the backend of a large, decent company canteen[1] stuck to a milk-round front end.
[1] And I don't really mean the ones that are just buying catering trays of food from a wholesaler and heating it. I worked in a factory in China for some time and their food was great. Simple, home style food, cooked right there, from scratch, every day. Lunch for everyone and an option of breakfast and dinner (mostly for residential workers). It's the only food that's not homemade that I could imagine eating daily.
As far as industries go, the restaurant industry is probably one of the least consolidated in the world. For every chain restaurant, there are a dozen standalone restaurants.
That's the idea anyway. There are also specific traveler personas that they target. For example, Courtyard was originally specifically designed for business travelers. Of course, a huge chain like Marriott has acquired other chains and many of its own brands have morphed over time for various reasons so a lot of the sub-brands end up looking pretty similar to each other. This isn't really hidden from consumers though. Certainly frequent travelers are well aware of the overarching company because of loyalty programs.
In the US that type of setup is pretty much illegal everywhere. Chains were becoming more prevalent, but recently we’ve basically gone back to the same model with a food truck, which is tiny and takes up a parking spot. Usually taking off the wheels is illegal though.
Otherwise I like the concept of food trucks, to me they are a perfect way for enthusiastic chefs to start their business with low(ish) money investment.
>Food employees must clean their hands in a handwashing lavatory and may not clean their hands in a sink used for food preparation or in a service sink or a curbed cleaning facility used for the disposal of mop water and similar liquid waste.
>Food must be stored in a clean, dry location where it is not exposed to splash, dust, or other contamination and is at least 15 centimeters (6 inches) above the floor
>Sufficient refrigeration facilities or other effectively insulated facilities that are conveniently located must be provided to assure the maintenance of potentially hazardous food at required temperatures during storage. Each mechanically refrigerated facility storing potentially hazardous food must be provided with a numerically scaled indicating thermometer, accurate to ±1°C (2°F), located to measure air temperature in the warmest part of the facility.
>Fruits and vegetables may be washed by using chemicals as specified in 21 C.F.R. 173.315, April 1, 1996. Any sink used to wash, prepare, store, or soak food must be indirectly connected to the sewer through an airbreak.
>A ventilation hood system must be provided over all cooking equipment which produces steam, excessive smoke, grease vapors, or odors.
>Perimeter walls and roof of a food establishment must effectively protect the establishment from the weather and the entry of insects, rodents, and other animals.
It would be hard to meet those requirements with a grill and two tables, but the list goes on:
So a restroom.
>Food must be stored in a clean, dry location where it is not exposed to splash, dust, or other contamination and is at least 15 centimeters (6 inches) above the floor.
A shelf.
>Sufficient refrigeration facilities or other effectively insulated facilities that are conveniently located must be provided to assure the maintenance of potentially hazardous food at required temperatures during storage. Each mechanically refrigerated facility storing potentially hazardous food must be provided with a numerically scaled indicating thermometer, accurate to ±1°C (2°F), located to measure air temperature in the warmest part of the facility.
A fridge and a thermometer
>Fruits and vegetables may be washed by using chemicals as specified in 21 C.F.R. 173.315, April 1, 1996. Any sink used to wash, prepare, store, or soak food must be indirectly connected to the sewer through an airbreak.
This a U shaped a filter on the drain hose, you can self install and cost a few bucks.
>A ventilation hood system must be provided over all cooking equipment which produces steam, excessive smoke, grease vapors, or odors.
A hood a standard in every kitchen.
>Perimeter walls and roof of a food establishment must effectively protect the establishment from the weather and the entry of insects, rodents, and other animals.
Walls and a roof?.
These are sanitary requirements but none of them are extra imo
> Any sink used to wash, prepare, store, or soak food must be indirectly connected to the sewer through an airbreak, and a water tank not being suitable.
Which I interpreted as a direct sewer connection for the sink being required.
These add up fast.
More like common sense. I'd really wish any place that prepares my food from scratch would obey at least the ones you listed and more even if it's just a grill.
A land of the free would truly have to be a home of the brave.
The cost of the land and asphalt for a parking space is $5-10k for a surface spot, $30k for an underground one. Two tables wouldn’t pay the interest rate on that, especially if multiple are required.
Many products already do it eg “TheThing: By TheParentCompany”. But yes maybe consumers should be aware who ultimately benefits from their purchase of a product, and easily be able to decide to buy more independent brands.
How do you define "ultimate parent owner of the company"? In the case of Unilever, they own the brands directly, so it's straightforward to determine the "ultimate parent owner". But it's not hard to register a separate LLC for each brand, which makes the "ultimate parent owner" much murkier, especially if the LLC has weird ownership structures.
But yes, I’d be all for that. If a bill is drafted, all the entities that had input into that draft should be listed. If a politician gives a speech at the request of a compensating entity, that should be disclosed at the beginning: “This speech was paid for in part by Audible. More on them at the end of the speech”
this got me thinking - the photos of the store fronts are basically garages, with few or no tables and chairs, and few or no delivery vehicles. you'd expect in a massive city with 24/7 food services, and a large surface area to nab unsuspecting customers, there to be a fleet of mopeds awaiting outside. but instead the address given is probably just where the businesses are registered. box ticked, nothing checked. the actual "kitchen" and delivery mechanism could be based anywhere. e.g. the nearest/dirtiest friend/family/gang member to the delivery address. are we to trust that the one running this scam adheres to food safety standards? or any standards for that matter
Lobby to change the law but beware lobbying?
lobbyist: A person who is paid to lobby politicians and encourage them to vote a certain way or otherwise use their office to effect a desired result.
Emphasis on paid.
Lobbying isn’t a bad thing. Charities, unions, NGOs all lobby, and they use lobbyists to do it.
Or, you know, use morals and conscience.
This is the same reason why murder us illegal even though most people wouldn't do it anyways.
The branding of the parent entity must be more prominent than any subbrand on any packaging or promotional material.
This applies to pretty much all areas of life:
Food delivery, Web scraping, personal relationships, insider trading, nation building, you name it.
Also intent/appearance of sincerity matters: "When Two Do The Same Thing, It Is Not The Same Thing After All."
Charging to recoup the cost of the infrastructure = ok.
Charging more to force competitors out or to build their own, wholly redundant, towers = illegal.
It's essentially a matter of declaring that the towers themselves, and the infrastructure that connect and power them, are not to be a profit maker for anyone. Can be made a condition during spectrum allocation, for example.
There's still plenty of other areas for providers to distinguish themselves.
And there's still an incentive to increase coverage. The only coverage increase incentive lost is the incentive of becoming a local monopoly. Good riddance, I say.
They're already required to make sure the tower doesn't fall in someone's head. That cuts into profit. But they still do it.
A few years ago I was ordering a fair amount off Postmates. One night I ordered something that was decently expensive. When it came the food looked nothing like the picture and was so bad it was borderline inedible. I threw it away in disbelief that a restaurant could possibly be this bad and after a bit of research I discovered that this wasn’t a ‘real’ restaurant - it’s one of these converted buildings that operate on a delivery only basis through the apps.
I tried to complain to Postmates but they ignored me, gave me copy/paste e-mail responses and didn’t do anything.
So I never used Postmates again, and likely never will. A lot of these businesses are run to try to make quick profits at the expense of establishing long-term trust and they will ultimately fail.
Companies like Unilever have been doing this for far longer than anyone in the restaurant space. Churn out thousands of brands that supposedly "compete" with each other in the marketplace. If one of those brands has a reputation problem, shut it down and replace it. Rinse and repeat.
If the practice is distasteful, then change the law, but beware the lobbyists.