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Is the mainstreaming of veganism a threat to your brand?

Veganism is one of the hottest trends of the year. Are you prepared?

January 3, 2019 by Cherryh Cansler

Editor's note: In an effort to uncover the latest trends in the fast casual sector, FastCasual tapped a variety of experts for a multi-part series, called, "Trend Watch 2019." Part 1 focused on how customer expectations are changing service models. Part 2 explored how customer sentiment about the world and economy effects menu trends, and Part 3 discussed service styles.

Although vegans and vegetarians are still in the minority compared to meat eaters, they're coming in hot. Sales of plant-based meat in the United States, for example, increased by 24 percent over the previous year, and plant-based food sales overall rose 20 percent over the previous year to more than $3.3 billion, according to a study conducted by the Plant Based Foods Association and Nielsen. 

"The biggest threat to the popularity of burger and chicken is the trend of consumers cutting back on eating meat, " Trish Caddy, Mintel Foodservice Analyst, said in her latest report, "Burger and Chicken Restaurants — UK — September 2018." "This is being driven by younger millennials who have either adopted a full-time vegan lifestyle or are simply eating more plant-based dishes. Operators now need to tackle this issue by offering consumers more varied choice, including vegan burgers.”

That's because customers are seeking out restaurants that offer not only vegetarian foods but also vegan options, which differ from vegetarian foods in that they contain no meat products, such as dairy foods, eggs or any other animal-derived items. Google searches for the word, "vegan" quadrupled between 2012 and 2017, with it now getting nearly three times more interest than vegetarian and gluten-free searches, according to the Vegan Society. Forbes predicted more people than ever will embrace a plant-based lifestyle this year, and The Economist called 2019 the "Year of the vegan," pointing out that 25 percent of Americans 25-to-34 years old identified as vegan or vegetarian and that U.S. sales of vegan foods rose 10 times faster from January to June 2018 than food sales as a whole.

Customer demand means operators are pursuing more meatless alternatives, Christina Donahue of Dining Alliance, which reported that orders for meat substitutes among its members increased 28.4 in 2018 over 2017.

"What’s more, operators may seize on the opportunity to price these products at a premium, allowing for greater profitability," she said in an interview with FastCasual.

Veggie Grill CEO Steve Heeley is happy to be in the veggie business. His California-based, veggie-only concept is experiencing sales growth from both new guests wanting to try plant-based food as well as existing guests wanting to try more creative offerings.

"Gluten-free demand is picking up, and plant-based protein substitutes coming to market are generating interest from non-vegan guests," he said in an interview with FastCasual.com "Vegan desserts and ice cream are generating high interest as well."

Vegan options hitting all cuisine types
But it's not only veggie-centric chains meeting the demand. Fatburger and Wahlburgers, for example, recently added the Impossible Burger  — made entirely from plants — to their menus. Moe's Southwest Grill is testing Impossible Foods' meatless option as a base for all its Mexican entrees, including nachos, burritos, bowls and tacos. And New York's Fresh&co is rolling out a Pho Bowl made with Impossible meatballs, zucchini noodles, organic mint, micro cilantro, green cabbage, scallions and garnished with a lime wedge. 

Fresh&co is rolling out a Pho Bowl made with Impossible meatballs.

"Partnering with Impossible Foods also allows us to evolve our sustainability practices as it generates less than an eighth of the greenhouse gas emissions required to produce the same quantity of ground beef from cows and has a much smaller environmental footprint," said George Tenedios, co-founder and CEO of fresh&co.

Even larger brands, including Carl's Jr., announced it has partnered with alternative meat producer, Beyond Meat to launch The Beyond Famous Star, including an all plant-based Beyond Burger patty in what the chain touts as the first so-called flexitarian take on the Famous Star. For those unfamiliar with that term, a flexitarian typically alternates both animal-based and vegetable-based center-of-the-plate dishes. In 2018, competitor White Castle also launched an planted-based burger alternative in its Impossible Slider, and numerous fast casual brands have added similar items to their menus. In Carl's Jr.'s case the Beyond Burger patty on its new sandwich is cooked like other burgers there, on open-flames in the brand's char broiler. The brand said in a news release that it's hoping to tap into the flexitarian dollar.">Carl's Jr. and White Castle are getting in on the trend.

"We know people are looking for options," Carl's Jr. parent company CKE Restaurants CEO Jason Market, said about why the chain has partnered with alternative meat producer, Beyond Meat, to launch an all plant-based Beyond Burger patty. He called the burger the chain's flexitarian take on its Famous Star burger. (A flexitarian alternates both animal-based and vegetable-based center-of-the-plate dishes.)

"In fact, roughly one-third of consumers identify as flexitarians. ... The new Beyond Famous Star is a true industry game-changer, and we're proud to add it to our roster of innovative offerings and build on the legacy of mouthwatering flavors," Market said.

All the cool kids are doing it
Although most people associate chicken nuggets and hamburgers with kids menus, children today may prefer veggies, according to a study by plant-based fresh food brand BOL Foods that revealed that nearly half (44 percent) of Generation Z-ers said being vegan was cooler than smoking. 

"Almost a quarter of 18-24-year-olds have turned vegan in the past year, 35 percent are on the hunt for a vegan partner (who they assume will be better looking, more interesting and fitter) and it looks as though peer pressure has even taken a turn for the better as one in three would try going vegan as it looks more impressive to others," the study said.

You can consider McDonald's UK "woke." It added a veggie wrap to its Happy Meal after learning that 33 percent of its customers wanted more meat-free options. And it's not the first or only center-plate vegan item available at Mcdonald's. Although its vegan sandwich — the McAloo Tikki — isn't new to McDonald's India, the chain added it in November 2018, to its menu at its global headquarters restaurant in Chicago. (It's a veggie patty made with potatoes, pea and seasoning reminiscent of samosas; topped with red onions, tomato slices and an eggless tomato mayo.)

Two years ago, McDonald's launched another vegan option — the McVegan — in the Finnish market, following a successful product test in Finland. 

"The attention the McVegan gained at the sales test phase and the positive feedback we received exceeded our expectations," McDonald's Finland Communications Director Heli Ryhanen said in an email to QSRweb. "The decision to bring the McVegan to our nationwide menu is an answer to our customers' wishes."

She said the McVegan recipe was developed in Finland and is soy-based, topped with tomato, salad, pickled cucumber and a sauce made without eggs.

Celebrating Veganuary

Veganism is so popular that it now has own month and charity — Veganuary. Launched in 2014, it encourages people to try vegan in January and throughout the rest of the year. Thousands have signed up to take the vegan pledge, a fact that isn't lost on London's Crussh Fit Food & Juice Bars, which has transformed its London Soho store into a 100-percent, plant-based strategy for the month of January.

The vegan store is part of the brand's 'Powered by Plants' campaign, and offers more than 70 vegan recipes including a vegan feta "cheese." The campaign also includes the launch of eight vegan products across all 35 Crussh locations.

"One of the biggest trends we've seen this year is the growth in veganism and we know that moving to a more plant-based diet can have such a positive impact on both the health of individuals and the planet," said Helen Harrison, Crushh head of Marketing. "The offering in our Soho store, and across the business, is really focused on maintaining the integrity of vegan food, keeping it pretty simple, really delicious and staying true to our food values at Crussh.

"Creating the menu was far easier than we initially thought, as we already have a wide vegan range across the business."

Cover photo: iStock