An Umhlanga restauranteur who registered the brand name Zuma for his new eatery, styled on the well-established international chain of Asian restaurants with the same name, has been found guilty of misleading advertising.
The Advertising Regulatory Board (ARB) also found the upmarket KwaZulu-Natal restaurant owned by David Manal, author of Kitchen Gangster, traded on the stellar reputation of the known brand while in reality being a competitor and deliberately choosing to market under the Zuma name rather than their own registered trademark “Zhuma”.
The finding followed a formal complaint by the international brand, which has stated its plans to set up shop in South Africa soon, adding to its collection of 21 branches across the world.
Zuma Restaurant, under the name Azumi Limited, complained that its competitor, trading as Zuma Restaurant and Lounge in Umhlanga's Pearl Walk, was imitating its brand and trading on its well-established reputation as an upmarket Asian restaurant.
While the Zuma Restaurant chain had been established 20 years ago, Azumi pointed out the KZN restaurant was launched only in November 2022. It submitted that its first restaurant was opened in London in 2002, and it now has 13 permanent and seven seasonal outlets across the world.
There is no doubt in the mind of the directorate that a deliberate attempt was made by the advertiser to create an association with the complainant’s brand.
— Advertising Regulatory Board
The local restaurant’s launch made the news when former president Jacob Zuma took part in the ribbon-cutting ceremony and danced.
Azumi argued Zuma Restaurant and Lounge was imitating its own promotional material, was a private South African company and was not linked to it. It was promoting itself through press coverage and editorials, online and social media advertising and in-restaurant advertising, such as restaurant front signage and menus.
Azumi submitted 127 pages showing its own press coverage over the years, demonstrating the widespread global reach the restaurants have internationally. It explained its concept as “contemporary Japanese cuisine” offering a unique experience inspired by Izakaya-style Japanese dining, “where food is brought to your table continuously throughout the meal” and was the central concept of the Zuma restaurants.
Azumi argued it had built substantial advertising goodwill in the Zuma trade name, which had become recognisable, prominent and established in the mind of consumers as being associated exclusively with the company. However, when it went to register its trademark application in South Africa, it was refused on the basis the Durban restaurant had already registered a very similar trademark called “Zhuma” in 2021 and had also applied to register “Zuma Contemporary Asian Cuisine”.
It was also found the local restaurant had registered the www.zumarestaurant.co.za domain name and had started using @zumarestaurant.sa account on Instagram before opening a restaurant under the name Zuma with the tagline “Contemporary Mediterrasian cuisine”, the same theme and concept as the Zuma chain.
Azumi said the restaurant had made false and misleading statements intended to create the impression it was associated with the international brand. This was illustrated by its website’s claim that “Zuma is an internationally established brand trademarked in South Africa”, which was amended after the complaint was laid.
The local restaurant also claimed at the restaurant opening that “the fancy eatery was not named after [Jacob] Zuma. It is the name of an international restaurant”, and holder of the sole trademark in South Africa.
Media articles were produced in which the restaurant stated the Durban eatery was inspired by Zuma Dubai, an Izakaya inspired Japanese restaurant. Azumi said this showed the intent to create confusion and deception.
The KZN restaurant’s lawyers responded by stating it was not a member of the ARB and therefore not bound by any decisions taken against it.
Depite this, the ARB went ahead with an assessment of the complaint in terms of the application of the Code of Advertising Practice as it relates to misleading advertising, exploitation of advertising goodwill and imitation.
The board found that although non-members could not be compelled to participate in its processes, it could issue a directive that all members should accept before publishing material from an offender and should withdraw any advertisement that had already been published.
The board said the local restaurant stated on its website: “Zuma is an independent and trademarked entity in South Africa, created by David Manal, aka Chef Raw and includes the Izakaya, Robata, & Flambé style of modern cuisine & entertainment,” despite being registered as Zhuma.
The board found the claim to be misleading and false.
"There is no doubt in the mind of the directorate that a deliberate attempt was made by the advertiser to create an association with the complainant’s brand.”
The board found the Umhlanga operator “consciously and deliberately chose to use the trade name Zuma and not their registered trade mark Zhuma” to benefit from the international brand.
“This becomes especially clear if one considers that in South Africa and especially in KZN, the word ‘Zuma’ is more likely to be associated with former president Jacob Zuma, who is not Asian and whose reputation is mixed. Naming a restaurant ‘Zuma’, therefore, is not a logical move for an Asian restaurant, unless the very intention was to imitate the complainant.”
The board has instructed all members not to accept any advertising making use of the trade name Zuma unless the advertiser can show it has registered the trademark.
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