This is the reason why Karen’s Diner closed down

KH friends, do you still remember a restaurant called Karen’s Diner that went viral because of the concept of service that is ignorant, fierce, and angry at consumers? Long unheard of, this Australian burger restaurant has been closed since November 2023.

This news is known from the uploads of social media users X (formerly Twitter) who said Karen’s Diner was no longer operating. Former Karen’s Diner employee, Bedwina Baptitasta, through her TikTok upload also confirmed this news. Based on Detikcom’s observation at the location, Wednesday (17/1/2014), Karen’s Diner does not appear to be operating anymore. This can be seen from the name sign ‘Bengkel Burger’ which oversees Karen’s Diner in Jakarta. Currently the former location where the restaurant was located has changed its name sign to Middle Child. Meanwhile, the ground floor of the building is still occupied by the same bakery called Beau Bakery. Many netizens thought that Karen’s Diner went bankrupt. However, this is not the case. So, what’s the reason? Find out more here.

What’s the reason why Karen’s Diner in Jakarta closed?

The Australian burger restaurant Karen’s Diner has recently opened a branch in Jakarta, in December 2022 to be precise. In accordance with its slogan ‘Great Burgers and Very Rude Service’, customers who visit Karen’s Diner will be greeted by rude and impolite waiters. Many people come to experience this unique service. Not only did they come, they also created content that went viral on social media. It should be noted that Karen’s Diner Jakarta does not stand alone.quoted by Detikcom, the restaurant collaborates with a local burger restaurant called “Bengkel Burger & Brew” to operate. Regarding the closure of the restaurant, one of the former employees named Bedwina Baptista explained that it was because Karen’s Diner in Jakarta was only a pop-up store. Bedwina clarified this through one of her TikTok videos @bebedwina. “Karen’s Diner no longer exists in Jakarta, because Karen’s Diner in Jakarta was only a collab for 6 months. The rest is over,” Bedwina was quoted as saying by dream.co.id. “So it’s just for seasonal. Not for a long time or a lifetime in Indonesia,” she explained.

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Related to this, Bedwina also informed that she and other Karen’s Dinner Jakarta employees no longer work at the restaurant. The Karen’s Diner restaurant that is still open is in Bali.

Pop-up Store Business Concept, What Does It Mean?

As mentioned above, Karen’s Diner in Jakarta is a pop-up store. According to Cambridge Dictionary, a pop-up store is defined as “a store that opens suddenly and usually exists for a short amount of time”. When translated, a pop-up store is a shop or outlet that opens suddenly and usually only exists for a short period of time. Based on this information, it can be said that Karen’s Diner is not closed due to bankruptcy, but the cooperation period for setting up a pop-up store has expired (not permanent). The pop-up store business concept is also related to brand licensing. Because, the owner of the trademark “Karen’s Diner” gives permission to other parties to use the trademark. This is stated in Article 42 paragraph (1) of Law Number 20 Year 2016 concerning Trademarks and Geographical Indications (Law 20/2016). If you want to use a license, the parties (between the trademark owner and the trademark recipient) must be based on an agreement. This is what is called a “license agreement”. In addition, it must also be ensured that the object of intellectual property to be licensed (in this case the trademark) must meet several conditions. This is regulated in the Regulation of the Minister of Law and Human Rights Number 8 of 2016 concerning Conditions and Procedures for Application for Recording Intellectual Property License Agreement (Permenkumham 8/2016). Based on Article 4 paragraph (3) of Permenkumham 8/2016, the requirements of the trademark license object include the following:

1. Still under protection;
2. Not detrimental to national economic interests;
3. Does not hinder technology development; and
4. Not contrary to the provisions of laws and regulations, decency, and order.

What are the Contents of a Trademark License Agreement?

As mentioned earlier, if you want to open a pop-up store like Karen’s Diner, in this case using someone else’s brand license, a license agreement is needed. This license agreement is regulated in Government Regulation Number 36 of 2018 concerning the Recording of Intellectual Property License Agreements (PP 36/2018). Based on Article 7 paragraph (2) of the PP, the contents of the license agreement are as follows:

1. Date, month, year, and place where the license agreement was signed;
2. Name and address of the licensor and licensee;
3. The object of the license agreement;
4. The terms of the license are exclusive or non-exclusive, including sublicenses;
5. Term of the license agreement;
6. The area where the license agreement is valid; and
7. The party that makes the annual fee payment for the patent.

After that, this license agreement must also be registered with the Directorate General of Intellectual Property (DJKI) of the Ministry of Law and Human Rights.

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Planning to team up with another party to use a brand license? There’s nothing wrong with that! In fact, giving or using part of the brand rights through a license is not a bad thing, the most important thing is not to forget to make a license agreement.

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This is important as it can prevent unauthorized or damaging use of the trademark by other parties. In addition, the trademark owner can also usually receive royalties from the licensee in exchange for permission to use the trademark. To make it easier, you can just leave it to Contract Law. Together with competent and professional IPR consultants, we can help you to make a trademark license agreement including its registration to the DJKI Kemenkumham. For service information, visit the KH Services – Trademark License Agreement page. Or if you have other Intellectual Property needs, you can consult for free at Ask KH or send a direct message (DM) to Instagram @Kontrakhukum.