Hooters Sues Rival Restaurant – The chain sues the “Twin Peaks” establishment after paperwork was filed in Atlanta last week on claims that a former executive jumped ship to the new franchise taking corporate secret documents with him.
The lawsuit filed in U.S. District Court in Atlanta on Wednesday said former vice president Joseph Hummel downloaded reams of “sensitive and highly confidential business information” to help La Cima Restaurants, an Atlanta-based firm that plans to help build 35 Twin Peaks stores across the Southeast.
Court documents state that, “The casual dining industry operates on extremely thin profit margins,” it said. “As a result, every operational advantage … is a jealously guarded business secret.”
Hooters restaurant is requesting a judge to order the rival to fire Hummel and to ignore whatever they know about the company based on the sensitive documents.
“La Cima now possesses a wide variety of trade secrets and other confidential and proprietary business information belonging to — information that will endow a competitor like La Cima with significant competitive advantages,” the lawsuit said.
There are currently 15, snow lodge style, Twin Peaks restaurants scattered across the Midwest. However, with the addition of Hummel and a partnership with the rival, the chain is looking to expand to 35 more locations across the Southeast.