Gene & Georgetti sues Midway Airport concession operator over restaurant partnership
The owners of Gene & Georgetti steakhouse are suing a concessions operator over their expansion at Midway International Airport.
Crain's Chicago Business published a copy of the complaint. It says SSP America used the restaurant's reputation to secure a contract for itself at the airport, and then damaged Gene & Georgetti's brand.
The partnership goes back to 2019, when SSP America was looking to secure a restaurant concession at Midway, the lawsuit said.
"Defendant knew that partnering with Gene & Georgetti would greatly increase its chances of winning the restaurant concession at Midway Airport, as Gene & Georgetti is a woman-owned, woman-managed, and famous local restaurant in Chicago," the lawsuit said.
Gene & Georgetti agreed to partner with SSP America, and Gene & Georgetti co-owner Michelle Durpetti set up G&G Midway to facilitate the partnership, the lawsuit said.
The lawsuit said SSP America repeatedly told Gene & Georgetti that the concessions operator hoped to form a longstanding relationship lasting years, or even decades, with the restaurant.
The agreement required SSP America to pay a $50,000 upfront fee to Gene & Georgetti in exchange for using proprietary material such as trademarks and trade secrets, and the Gene & Georgetti's good name, the lawsuit said. SSP was also required to pay licensing fees of 5% of net revenues generated at Gene's Bistro, the lawsuit said.
Gene's Bistro opened in 2020 at Midway as part of a 20-year deal.
"From day one, Gene's Bistro was an instant attraction in Midway as travelers recognizing the brand name Gene & Georgetti were eager to dine at Gene's Bistro," the lawsuit said.
But soon after SSP America had "secured the menus, brand name, and expertise" from Gene & Georgetti, the relationship between the concession operator and the restaurant changed, the lawsuit said. Specifically, SSP said it was struggling financially due to the COVID-19 pandemic and could not pay its fees to Gene & Georgetti that were required under the agreement, the lawsuit said.
Gene & Georgetti agreed to a request by SSP to waive both the licensing fees the upfront fee for more than a year — allowing the concession operator to use Gene & Georgetti's name recognition, licenses, and expertise for free, the lawsuit said.
Meanwhile, the lawsuit said SSP America deviated from the core menu the parties had agreed upon, and began using recipes and serving dishes of lower quality at Gene's Bistro. When Gene & Georgetti's complained about this, the restaurant was "met with [SSP America's] resistance, and even threats of terminating the partnership," the lawsuit said.
Then, SSP America decided to terminate its partnership with Gene & Georgetti, the lawsuit said. On Oct. 21 of last year, SSP America sent a letter to Gene & Georgetti announcing that it was "unilaterally" terminating the partnership and that Gene's Bistro would go out of business within 90 days, the lawsuit said.
The lawsuit said SSP America did not give any reason for this, but claimed that SSP America was in negotiations with Bally's Chicago for a space for slot machines at Midway, and was planning to turn Gene's Bistro into a sports-themed bar that would eventually include slot machines, the lawsuit said.
The lawsuit also said Gene's Bistro has received bad reviews, with people commenting in Google reviews, "This place is a joke," "I've never been verbally berated by a server quite like today," and "Got severe food poisoning from here."
Crain's reported that SSP America said in a statement that the lawsuit is "without merit," and that it remains committed to partnering with local brands and making the right business decisions.
Gene's Bistro currently remains open.