food fight
Vegetarian Times, July, 2001 by Maria Rabat
When the Chetcuti brothers opened up Atom's Juice Bar last August, a vegan cafe in Grosse Pointe, Mich., they had modest aspirations. "We dreamed of $250 days," John Chetcuti recalls. But from the beginning, the Chetcutis were beset with troubles. A clause in their lease stipulated that they could sell only vegetarian soup, juice and tea and not compete with Subway, the fast-food sandwich chain, located a few doors down in the same strip mall. In an effort to maintain full disclosure, the Chetcutis presented their menu to the leasing agent, Fisher Road Properties (FRP), and received approval. A COMING SOON sign taped to the storefront's window announced the intended bill of fare: vegan soups, salads and sandwiches. The owners of the Subway franchise, Tom and Doris Odren, did not roll out the welcome wagon. Instead, they threatened the landlord with a lawsuit, citing breach of contract for allowing another food establishment to operate in the same location.
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When John Chetcuti learned of the impending legal battle, he wrote to FRP to assure them that Atom's vegan menu would not compete with Subway's sandwich menu. Chetcuti noted that they wouldn't even share the same clientele, explaining that his customers would never even venture into a Subway shop. "How could really good, healthy vegetarian and raw foods be considered competition?" he argued. This opinion was not shared by the Odrens. In a letter to FRP, Subway contended that its neighbors' health-conscious menu was in direct competition with its "7 Subs with 6 Grams of Fat or Less" campaign, which stresses the nutritional value of its sandwich menu. Never mind that Subway, both on its web site and its branded paper products, compares its "healthy" subs with Big Macs and Whoppers with the intention of targeting customers of Burger King and McDonald's.
Enter the attorneys. Subway filed suit against FRP in October, and FRP in turn sued Atom's for violating the no-compete clause. FRP demanded that Atom's stop selling "soup, juice, tea or any other foods and drinks." The Chetcutis countersued, alleging breach of contract and fraud. "It kind of put a damper on our Thanksgiving," remarked John Chetcuti.
Things started to turn "weird and ugly" (Chetcuti's words) soon after--like the time Chetcuti went out to the parking lot to find his car completely covered with mayonnaise. "We never could prove who did it," Chetcuti says. Coincidence? "I don't think so. Someone would have had to buy lots of the stuff, or at least have access to gallons and gallons of mayo. Any thoughts come to mind?"
The media frenzy erupted early last March, and once the Associated Press reported the story, hordes of people started patronizing Atom's to be part of the spectacle. "Business has increased dramatically," reports Chetcuti. "The local NBC, ABC and FOX affiliates were here covering our story. All three aired the piece on both the morning and the evening news." But for Chetcuti his businesS' was always newsworthy. "Atom's is a unique restaurant, the only certified green restaurant in all of Michigan. I opened this place because as a vegetarian, I couldn't get anything to eat in this neighborhood, so I decided to change that."
On March 12, both parties met at a hearing and came to a settlement. A confidentiality agreement bars either party from discussing the details or the concessions that they made, but Chetcuti is happy to report that Atom's is open for business, with its original menu intact.
Although the experience has taken its toll on the Chetcuti family, John is pleased with the outcome. "I thought this would be the death of us. For months we couldn't pay ourselves. We were broke. Somehow this ordeal has breathed new life into the restaurant. We've gotten tons of press. There isn't a vegetarian in all of Michigan who doesn't know about us. And once we made national news, we started receiving letters and donations from all over the country to help cover legal expenses. I was touched by the wealth of support we received," says Chetcuti. Score one for the little guy who went up against a big corporation and came out on top.
COPYRIGHT 2001 Vegetarian Times, Inc. All rights reserved.
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