Momofuku Acquired Chile Crunch Trademark From Small Denver Business

Celebrity chef and Momofuku founder David Chang has the food world in an uproar (again). This time, it's over the term "chile crunch." The headlines are all about his company sending cease-and-desist letters to small businesses using that name for their products, but the roots of this battle go back to a Denver-based brand.

Susan Hojel, who was raised in Mexico City, was living in San Francisco in 2008 when she created a product called Chile Crunch, a spicy, crisp blend of ingredients that pays homage to the salsas, spices and chiles she grew up eating. "At the time, there was nothing like it on the market," she recalls.

She trademarked the name in 2009 and moved her business to Denver in 2012, gaining many loyal fans along the way. Then about four or five years ago, she says, Hojel was contacted by Trader Joe's, which was planning to come out with its own version of chile crunch.

"They approached me to make it," she says, adding that after she turned down that offer, "they asked to do a private label. I said, 'Here's my price,' and they said it was too expensive." When Hojel later saw that Trader Joe's had launched a product called Chile Onion Crunch, she sent her own cease-and-desist letter.

"They said they didn't know about me," she remembers. But, then, she says, they told her lawyer: "We looked up your client. It's a small company that can't afford to sue us."

But Hojel did sue. "They were very, very not nice," she notes. "Finally, they had to change the name" — to Crunchy Chile Onion. "When you sue someone like this, you don't get any compensation. I can't prove I lost revenue."

After that, "I went back and added 'incontestable' to my trademark," she says, referencing a designation that can be attained only after holding a trademark for five years. And then she went after Momofuku, which had launched its Chili Crunch in 2018.
"Again, it's a huge company with a stable of lawyers," Hojel says. She fought for a year and a half, but ultimately, she reports, "We made an agreement and I sold the name" — with one caveat: She can keep using Chile Crunch in perpetuity via a licensing agreement.

"I could no longer afford to keep it up — a small company has no chance against the large companies, and they know it. Now they're the ones fighting the battle," she explains.

Hojel understands why Momofuku is sending cease-and-desist letters — after all, she did the same. "I always felt that if you have a trademark, then you own the name. Momofuku now owns the trademark. They have the right to defend it," she says. Still, she adds, "I'm sorry for the little people — I was one of those little people. I wish I had some backing. No one would acknowledge my trademark. I do feel the big companies are bullies."

Hojel's Chile Crunch was inspired by Mexican cuisine. Momofuku's is a version of the Chinese condiment that has existed for centuries. As a result, the threatened legal action it's made against Asian-owned small businesses has resulted in plenty of backlash.

In an Instagram story posted on April 5, Die Die Must Try, a bubble tea shop that opened in Cherry Creek last October, wrote, "@momofukugoods did so much trailblazing — why you gotta burn the trail behind you?? A rising chili crisp/crunch tide lifts all boats!"

If all this fighting has you feeling fiery, consider picking up a locally made version of Asian chile crisp/crunch/oil.

In 2023, Meta Asian Kitchen nabbed a Best of Denver award for Best Chinese Condiments. It's since moved out of Avanti Denver and debuted as the brick-and-mortar MAKfam (our 2024 pick for Best New Fine-Casual Restaurant), but it still offers its jarred sauces, including Uncle Tony's Chili Oil.

Yuan Wonton also sells jars of its bright-red chili oil at its Park Hill brick-and-mortar home, and Pig & Tiger inside Avanti Boulder has a version called Chili Crisp.

At Pho King Rapidos inside Avanti Denver, you can snag Tingly Crisp, which is "inspired by the Vietnamese sà tế sauce seen in dishes like bún bò Huế" and is "made with toasted lemongrass, garlic, onions, Thai chilis and also some Szechuan peppercorns to add a tingle to your mouth," according to its website.

As for Hojel's Chile Crunch, you can order it online at chilecrunch.com; it's also available at Whole Foods, the Fresh Market and other smaller markets in the metro area.