Family Feud at the Heart of Michigan Fast Food Chain’s Demise

A popular Michigan cheesesteak restaurant is shuttering 18 locations, and a feud between family members is said to be the reason for the chain's ultimate demise.

Lefty's Famous Cheesesteaks, Hoagies & Grill has been a fast-food staple in the Detroit area, but a legal battle between family members has forced the chain to close more than half of its locations.

What's Behind the Family Feud?

According to Mlive, a legal battle between the chain's founder Sam Berry and minority owner Allie Mallad has been brewing, ultimately shrinking the chain's footprint from 52 locations down to 20. There are just 17 Lefty's locations in the Metro Detroit area, one in Ohio, and two in Florida.

Sam Berry and his mother Nayfe Berry are accused of squeezing out Mallad by not sharing the money he's entitled to and putting the kibosh on plans to franchise the operation.

A lawsuit filed by Mallad - who is Nayfe Berry's cousin - seeks unspecified damages for profits that have been lost and the rights to buy out Berry and his mother's share of the company.

Berry then filed a federal countersuit to enforce a noncompete against Mallad. However, that case has since been dismissed.

Franchise Agreement Leads to Chain's Demise

In 2020, Berry and Mallad agreed to convert the chain into a franchise, growing the chain beyond its then-footprint of 11 stores.

Within two years, the Lefty's grew from 11 to 52 stores in Michigan, California, Ohio, Florida, and Texas. But Berry alleges Mallad didn't lead the initiative to grow the chain.

Mallad, who has a history of building franchises with other businesses, is accused of letting the business falter while he concentrated on other endeavors.

On the other hand, Mallad claims that Berry did irreparable damage to the Lefty's brand by posting videos of himself swearing and flaunting cash in videos while wearing the Lefty's logo.

At present, Sam Berry is operating a majority of the Lefty's locations that remain in Michigan.