Aussie burger chain Grill’d accused of misleading customers over charity donations

Grill’d is being taken to court by the consumer watchdog over allegations the popular Australian gourmet burger chain misled consumers about charity donations made as part of its ‘Tree Day Tuesday’ campaign.

Between January 2021 and April 2024, Grill’d advertised the tree planting promotion in ads on Instagram, Facebook and in store using phrases including “For every Tuesday Grill’d burg purchase, $1 goes towards planting a tree”.

But the Australian Competition and Consumer Commission (ACCC) alleges that due to numerous conditions on the promotion, only four per cent of all burgers purchased on a Tuesday qualified for the donation.

“We allege Grill’d misled customers by overstating the extent of the donations it would make and the environmental contributions from its Tree Day Tuesday promotion,” ACCC Chair Gina Cass-Gottlieb said.

“We consider this to be a form of greenwashing.”

While the exact wording of the promotions varied, the ACCC alleges that all the 26 promotions in question - including posts on Facebook and Instagram as well as in store - overstated the circumstances in which donations or contributions would be made.

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For a purchase to qualify for a donation under the Tree Day Tuesday campaign, the person making the purchase had to jump through the following hoops:

• be purchasing on a Tuesday;
• be a member of the restaurant’s loyalty program, Relish;
• purchase a “main item” (a burger or salad);
• dine in (not order take away or buy online);
• place their order at a Grill’d front counter (not using a QR code at their table);
• scan their loyalty program bar code when ordering;
• not be purchasing in conjunction with any other offer.

Over five million burgers were bought on a Tuesday during the three-year promotional period.

Of those five million burgers, more than one million were bought by Relish members, but only about 17 per cent of those qualified for a donation under the promotion, according to the ACCC.

“We allege that Grill’d deprived consumers of the ability to make an informed decision by overstating the circumstances in which it would make a donation to an environmental cause, which may also have given Grill’d an unfair competitive advantage,” Cass-Gottlieb said.

In a statement provided to nine.com.au, a Grill’d spokesperson said that the campaign led to over $250,000 being donated by Grill’d to Greenfleet to plant over 100,000 trees and restore of over 40 hectares of forests.

“The Tree Day Tuesday promotion was undertaken with positive intent,” the Grill’d spokesperson said.

“Grill’d has a proud history of supporting and donating to thousands of community groups across Australia... supporting Australian communities and those in need has and will always be part of who we are.”

An Australian owned and run burger chain, Grill’d has ballooned in popularity since director Simon Crowe opened the first store in Melbourne in 2004, with 175 restaurants now operating across the country, mostly in Queensland, NSW and Victoria.

Its website and promotional materials promotes their “guilt-free, healthy” burgers and meal options as well as its commitment to environmental sustainability.

The full statement from Grill’d is provided below.

Statement from Grill’d

The proceedings instigated by the ACCC relate to a ‘Tree Day Tuesday’ promotion that was available from January 2021 to April 2024.

The issue centres around the communication of specific terms and conditions for this promotional campaign. The Tree Day Tuesday promotion was undertaken with positive intent and over $250,000 was donated to plant over 100,000 trees and restoration of over 40 hectares of forests.

Grill’d has a proud history of supporting and donating to thousands of community groups across Australia. Local Matters has raised over $7 million for thousands of community groups, including local charities, schools and sporting clubs across Australia. We are an Australian business, and supporting Australian communities and those in need has and will always be part of who we are.

Grill’d takes Australian Consumer Law very seriously, and our reputation is forged in trust and doing the right thing in the communities where we live.

Grill’d has worked internally and with all stakeholders, including the ACCC, to ensure that brand & sustainability initiatives undertaken are clear and cause no confusion in the eyes of the Australian public.