Red Osier Sues Sunny's Restaurant Over Alleged Secret Recipe Theft

Nicole Granata turned in her key and walked out of the Red Osier Landmark Restaurant in the middle of her shift. That same evening, September 13, assistant chef Justin Newmark gave a verbal two-week notice and never came back. Within months, both were working at Sunny's Restaurant in Batavia, a new competitor that had opened just miles away in Genesee County. Now Red Osier's owners are in court alleging the departures were no coincidence.

Red Osier filed the suit on February 3, claiming former employees stole recipes for dishes that now appear on Sunny's menu. The restaurant, owned by Steve Foster and Tim Adams, is represented by Rochester attorney John T. Refermat of Refermat & Daniel. The case, filed in Genesee County Supreme Court, accuses chefs Nicole Granata and Justin Newmark of taking the secret recipes with them when they left their jobs at the Red Osier, and conspiring with Sunny's owner David Snyder to use the recipes in their new jobs at Sunny's.

The lawsuit claims that when Foster and Adams purchased the well-established restaurant in 2016, they acquired recipes and developed their own dishes they believe are unique and distinctive. The suit lists as examples of proprietary recipes: signature prime rib, twin cold-water lobster tails, Mahi Mahi in mango salsa, and bourbon-glazed salmon. Those dishes appear on Sunny's menu using the same language. To protect their recipes, Red Osier required employees to sign confidentiality agreements.

The Red Osier owners are seeking a temporary restraining order to remove the items from Sunny's menu and return the trade secrets. The complaint alleges the defendants' conduct will "cause substantial financial harm to plaintiff, dilute plaintiff's distinctive reputation, which plaintiff earned over many years, and will cause confusion in the marketplace."

Refermat framed the case around the limits of employee mobility. "People can work where they want, and restaurants can serve whatever dishes they like, clearly though, the law does not allow businesses to interfere wrongfully with their competitors. We look forward to proving our case in court."

The defense disputes both the facts and the legal theory. David Snyder stated in an affidavit that most of Sunny's menu was largely developed with the help of a restaurant supply company by the time he hired Red Osier's former head chef, Nicole Granata. Snyder said Sunny's prime rib is seasoned differently from Red Osier's and is based on a family recipe, noting "our prime rib has a noticeably sweeter profile on the crust of the meat after it is cooked." The mango salsa Sunny's uses is purchased from a supplier, and Snyder said he and Granata developed the salmon dish together, adding that he believes Red Osier's glaze is also purchased from a supplier.

Attorney Ted Graney, representing Sunny's, called the suit legally deficient and politically motivated. "As menu items, they're certainly not unique. Restaurants all over Western New York, Genesee County, Erie County, Monroe County, offer prime rib and lobster tail," Graney said. In court filings, Graney called the allegations "reckless, but more likely malicious and intended to harass a new restaurateur and former employees in an effort to improperly impede a competing restaurant from entering the marketplace."

The defense also challenged the foundational premise of Red Osier's ownership claims. Defense filings point to a video by Rob Moore, son of the restaurant's previous owners, in which Moore claims he and his family still own the recipes. Red Moore was the original owner of the Red Osier Landmark Restaurant for 37 years. Foster and Adams purchased the restaurant in 2016, but the question of what transferred with that sale, and what did not, may become a central issue in the case.

Granata, in her statement, said she first worked for Red Osier in 2017, left the company twice, and returned, with her most recent term beginning in 2021 when she was hired as head chef. Graney also noted that the employee handbook Red Osier is attempting to enforce as a contract states at least three times, "This Employee Handbook does not constitute a contract."

Sunny's is also preparing to go on offense. According to reports, the restaurant is preparing to seek sanctions against Red Osier in addition to attorney fees and associated costs. Defense filings characterize the litigation as "a significant waste of this court's limited time and resources, as well as the defendants'."

Considered by many a Genesee County landmark, the Red Osier has served its signature prime rib since 1979. Whether the recipes behind that reputation constitute legally protectable trade secrets, or simply common steakhouse fare dressed up with proprietary language, is now a question for a judge to decide.