Summary McDonald’s Ice Cream Machine Hackers Say They Found the ‘Smoking Gun’ That Killed Their Startup | WIRED www.wired.com
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Kytch developed a device to repair McDonald's ice cream machines, but McDonald's discouraged franchisees from using it, resulting in Kytch's downfall and a $900 million lawsuit against McDonald's.
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Slide Presentation (12 slides)
Key Points
- Kytch, a startup, developed a device that could hack into and monitor McDonald's soft-serve ice cream machines, which are often broken
- McDonald's warned its franchisees not to use Kytch's device, claiming it represented a safety hazard, leading to a significant drop in Kytch's sales
- Kytch claims to have found evidence that Taylor, the soft-serve machine maker, and McDonald's conspired to undermine Kytch and protect their own interests
- The evidence includes an internal email from the CEO of Taylor's parent company suggesting that either Middleby or McDonald's should send a communication to franchisees to slow the adoption of Kytch's "other solution"
- Kytch is pursuing a $900 million lawsuit against McDonald's, alleging that the fast-food giant cooperated with Taylor in telling its customers not to use Kytch, even as many of its restaurants faced significant issues with broken ice cream machines
- McDonald's and Taylor dispute Kytch's interpretation of the evidence, but Kytch plans to take the lawsuit against Taylor to a jury trial in May 2024
- The issue of broken ice cream machines at McDonald's restaurants appears to be an ongoing problem, with between 13% and 17% of its restaurants having broken machines at any given time just this month
Summaries
28 word summary
Kytch created a device to fix McDonald's ice cream machines, but McDonald's warned franchisees against using it, leading to Kytch's demise. Kytch is suing McDonald's for $900 million.
53 word summary
Kytch, a startup, developed a device to fix McDonald's ice cream machines. But McDonald's warned franchisees against using Kytch, shutting down the business. Kytch claims an email shows a conspiracy between McDonald's and Taylor to undermine Kytch. Kytch is now suing McDonald's for $900 million over the alleged cooperation to discourage Kytch's use.
121 word summary
Kytch, a startup, developed a device to monitor and maintain McDonald's ice cream machines. However, McDonald's warned franchisees against using Kytch, effectively shutting down the business. After litigation, Kytch claims to have found evidence of a conspiracy between McDonald's and machine manufacturer Taylor to undermine Kytch. An internal email suggests McDonald's or Taylor should slow Kytch's adoption, which Kytch sees as a "smoking gun." While the companies dispute this, other documents indicate McDonald's was eager to stymie Kytch from the start. Kytch is now suing McDonald's for $900 million, alleging the company cooperated with Taylor to discourage Kytch's use, even as many restaurants suffered from broken machines. The legal battle continues, and Taylor's promised solution remains unavailable, leaving the problem unresolved.
294 word summary
Kytch, a three-person startup, developed a device that could hack into and monitor McDonald's soft-serve ice cream machines, helping to keep them running. However, in November 2020, McDonald's warned its franchisees not to use Kytch's product, citing safety concerns. This effectively killed Kytch's business.
After years of litigation, Kytch claims to have found evidence suggesting that McDonald's and Taylor, the machine manufacturer, conspired to undermine Kytch. Kytch points to an internal email from the CEO of Taylor's parent company, Middleby, that appears to suggest either Middleby or McDonald's should send a communication to franchisees to slow the adoption of Kytch's "other solution."
Kytch argues this email is the "smoking gun" proving Taylor and McDonald's worked together to defame Kytch and protect their own interests. The startup claims the McDonald's safety warning was not about safety, but about protecting its equipment partner from competition.
While McDonald's and Middleby dispute Kytch's interpretation, other documents released in the lawsuit's discovery phase suggest McDonald's was eager to stymie Kytch from the beginning. A Taylor executive wrote that McDonald's was "all hot and heavy about Kytch's growing use in restaurants," and McDonald's executives had a meeting with Taylor to discuss the warning email before it was sent.
Kytch is pursuing a $900 million lawsuit against McDonald's, alleging the fast-food giant cooperated with Taylor in telling its customers not to use Kytch, even as many restaurants suffered from lost ice cream sales. The startup plans to take the lawsuit against Taylor to a jury trial in May 2024.
Despite the ongoing legal battle, the publicly documented ice cream machine issues at McDonald's appear to have continued, with a significant percentage of restaurants experiencing broken machines. Taylor's internet-connected solution has still not been made available to franchisees, leaving the problem unresolved.
542 word summary
McDonalds Ice Cream Machine Hackers Say They Found the Smoking Gun That Killed Their Startup
Over three years ago, a three-person startup called Kytch was selling a popular internet-connected device to McDonald's restaurant owners. The Kytch device could hack into the notoriously fragile and often broken soft-serve McFlurry machines, monitor their operations, and send diagnostic data over the internet to help keep them running.
However, in November 2020, McDonald's sent out an email to thousands of its franchisees warning them not to use Kytch's product, claiming it represented a safety hazard. Kytch says its sales dried up practically overnight after this warning.
Now, after years of litigation, Kytch claims to have unearthed evidence that suggests Taylor, the soft-serve machine maker, helped engineer McDonald's Kytch-killing email in a coordinated effort to undermine a potential competitor. Kytch points to an internal email from the CEO of Taylor's parent company, Middleby, that appears to suggest either Middleby or McDonald's should send a communication to franchisees to slow up the adoption of Kytch's "other solution."
Kytch argues this email is the "smoking gun" proving Taylor and McDonald's conspired to defame Kytch and protect their own interests. The startup claims the McDonald's safety warning was never really about safety, but about protecting its equipment partner from competition.
McDonald's, for its part, says the November 2020 email was issued on its own accord, not at Middleby or Taylor's direction. Taylor also won an early ruling in the lawsuit against Kytch's request for a preliminary injunction, which would have prevented Taylor from developing a device that Kytch claims was copied from its product.
Despite the email evidence, Middleby disputes Kytch's interpretation, stating that McDonald's decided to issue the November 2020 warning independently. However, Kytch argues that other documents released in the lawsuit's discovery phase show McDonald's itself was also eager to stymie Kytch from the beginning.
In February 2020, a Taylor executive wrote that McDonald's was "all hot and heavy about Kytch's growing use in restaurants." Before sending the November 2 email warning franchisees about Kytch, Taylor and McDonald's executives had a meeting to discuss the message, and a McDonald's exec also sent a draft to Taylor for its approval. A Taylor executive later wrote that they were "a bit in shock they are willing to take such a strong position."
Kytch is still pursuing a $900 million lawsuit against McDonald's, alleging the fast-food giant cooperated with Taylor in telling its customers not to use Kytch, even as many of its restaurants took a significant hit from lost ice cream sales. The startup says it plans to take the lawsuit against Taylor to a jury trial, currently set for May 2024.
The conspiracy described in Kytch's complaint involved "folks at the highest levels of leadership, not just at Taylor but also at Middleby and at McDonald's," according to Kytch's attorney. Kytch is looking forward to the opportunity to present its case in an open trial.
Meanwhile, the publicly documented ice cream headaches at McDonald's appear to have continued, with between 13% and 17% of its restaurants having broken ice cream machines at any given time just this month. Taylor's long-touted internet-connected ice cream machine solution has still not been made available to franchisees, according to one McDonald's restaurant owner.