West Coast Sourdough Sues Cali Rays for $15 Million
SACRAMENTO, Calif., Oct. 12, 2026 /PRNewswire/ -- West Coast Sourdough has filed a lawsuit in Sacramento County Superior Court against Cali Rays Sourdough Deli, CR Development, Inc., and individual defendants Gurdeep Bains, Kaldeep Uppal, Karndeep "Kay" Uppal, Rajwinder Singh, Balraj Singh and Gurpreet Singh Brar. The lawsuit seeks more than $15 million in damages over allegations that the defendants used West Coast Sourdough's confidential information, business systems and established brand identity to build a competing restaurant operation and recruit franchisees away from the West Coast Sourdough system.
Case No. 26CV023767
The action was brought by WCSD, Inc., the franchisor of West Coast Sourdough, and SFB Holdings Inc. West Coast Sourdough and SFB Holdings is represented by Benbrook Law Group of Sacramento.
The lawsuit follows the transition of multiple former West Coast Sourdough locations to the Cali Rays Sourdough Deli name. According to the complaint, those locations left the West Coast Sourdough system while their franchise agreements remained in effect.
West Coast Sourdough alleges that the conduct goes substantially beyond an ordinary change of restaurant branding. The company contends that Cali Rays built its competing operation using proprietary elements of the West Coast Sourdough concept, including recipes, food preparation methods, supplier information and operating systems, while retaining highly similar menus, restaurant designs and layouts.
The complaint further alleges that the defendants used their knowledge of West Coast Sourdough's franchise network to recruit franchisees, offering reduced or waived fees and conversion assistance to encourage them to leave existing agreements early. West Coast Sourdough also alleges that the defendants traded on its established brand and goodwill in ways that could confuse customers about the source and affiliation of the competing restaurants.
The lawsuit seeks damages exceeding $15 million, including alleged losses of more than $6 million in royalty and marketing fund revenue, damage to the company's brand and goodwill, and losses arising from the alleged misuse of trade secrets. The complaint includes claims for interference with contractual relationships, misappropriation of trade secrets, unfair competition and other alleged misconduct.
West Coast Sourdough continues to operate more than 50 restaurants in multiple states, with 80 more in development alongside its franchise partners.
West Coast Sourdough maintains that no business concern justifies the misuse of confidential information, proprietary business systems or trademarks or releases a franchisee from its contractual obligations.
In addition to damages, the plaintiffs are seeking preliminary and permanent injunctions to protect their confidential information, franchise relationships and brand from further misuse.
These statements describe allegations in a complaint. The defendants have not yet responded in court.
West Coast Sourdough intends to pursue its claims through the judicial process.
About West Coast Sourdough
West Coast Sourdough is a San Francisco based restaurant company specializing in sandwiches made with freshly baked sourdough bread, along with soups, salads, flatbreads and other menu offerings. The company has developed a branded restaurant concept and operating system supporting its growing franchise network.
SOURCE West Coast Sourdough
Share this article