McDonald’s ice cream machine is known for malfunctioning.
Kytch, a startup group, aimed to fix problems with a little internet-connected device that could be attached to the machines.
Now, reports indicate that Kytch has filed a lawsuit against McDonald’s for $900 million. Kytch says this is because they have “tarnished our name and scaring off our customers.”
Kytch installed the devices that read and analyze data from machines. It was made for McDonald’s by a business called Taylor. Kytch then sends the information to an app that can relay to franchise owners when something is about to malfunction on the ice cream machine.
In November 2020, leaders at McDonald’s told franchise owners to unplug the Kytch devices. McDonald’s claimed that the device could be harmful to people.
Kytch states that McDonald’s accusations are “false and deragatory.” They say that McDonald’s is using safety concerns as a “smokescreen for anti-competitive practices.” Thus, they are suing.
But, the McDonald’s franchise agreement allows the company to have a lot of input on managing the restuarants that they operate.
McDonald’s reiterated that safety was their number one concern. They require that all hardware is checked carefully before being sent into restuarants. However, Kytch says that all their products meet the Underwriters Laboratory and Intertek guidelines.
Kytch added that McDonald’s told other chains, like Burger King, not to use their devices.
Because McDonald’s is such a huge company, the fight with Kytch may last for some time.
