Los Angeles

Pasadena's Lucky Boy Burgers Sues Postmates Alleging Unfair Business Practices

February 24, 2021 / 6:59 PM PST / KCAL News

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PASADENA (CBSLA) — Lucky Boy, a walk-up burger restaurant in Pasadena, Wednesday filed suit against Postmates accusing the delivery service of unfair business practices.

Lucky Boy, which operates a popular roadside grill off Arroyo Parkway, has accused the popular delivery service of trademark infringement and unfair competition, alleging that the service used the company's name without authorization and intentionally posted a menu bearing incorrect information, including lower prices.

The suit also alleges that Postmates retaliated against the fast food restaurant for refusing to be associated with the app by offering "alternatives with similar food when Lucky Boy is searched for, and this too diverts business away from Lucky Boy."

According to the complaint, Lucky Boy did not want to be in business with Postmates due to its high service fees.

"Upon information and belief, defendant Postmates charges restaurants approximately 30% of each food order which causes some restaurants to actually lose money," the suit alleged. "Also Postmates only pays monthly. The high rates and slow pay are unacceptable. This is especially true in a pandemic when restaurants have faced unprecedented challenges in trying to remain open and pay overhead."

A message seeking comment from San Francisco-based Postmates was not immediately returned to City News Service.

Lucky Boy is a family-owned corporation that has been in business sine 1960. There are currently two locations in Pasadena: the walk-up diner owned by the plaintiff in the lawsuit and the Walnut Street location, which is licensed to family members.