The number of U.S. adults who call themselves vegans and vegetarians is statistically small — about 3 percent. Nonetheless, a growing group of concepts is convinced there is a broad audience ready to embrace plant-based dining.
With names like The Veggie Grill, Native Foods, Real Food Daily and Maoz Vegetarian, these concepts are geared to the mounting number of so-called “flexitarians,” consumers who eat meat when the mood suits them, but who for health and/or environmental reasons are trying to eat less of it.
Today’s meatless concepts fit neatly into the fast-casual segment or with such health-haloed casual-dining players as True Food Kitchen and Seasons 52. And unlike the brown-rice-slinging vegetarian concepts of past decades often mocked as bland, the new players focus on the quality of their food.
“It’s about serving delicious food that I’m going to feel good about eating later — and food that will be good for the planet,” said Greg Dollarhyde, chief executive of the seven-unit Veggie Grill chain based in Manhattan Beach, Calif. “We’re redefining American comfort food.”
Quantifying the number of people who avoid meat and animal products is difficult, partly because people define differently what it means to be vegetarian or vegan.
Following a 2009 Harris Interactive poll, the Vegetarian Resource Group estimated that about 3 percent of U.S. adults described themselves as vegetarian, meaning they never eat meat, poultry, fish or seafood. About one-third of those — an estimated 1 percent of the U.S. population — are vegan and never eat dairy, eggs and honey. About 8 percent of adults overall said they never eat meat.
Given such small numbers, it’s no surprise industry observers like Bonnie Riggs of research firm The NPD Group say vegetarian or vegan restaurant concepts simply lack “mass appeal.”
Operators might position such concepts as “healthy,” although only 10 percent of consumers say they are looking for healthful options when they dine out, she said.
Others question the need for meatless concepts with so many non-meat options available on restaurant menus. Even the much-anticipated LYFE Kitchen, a healthful fast-casual concept developed by veterans of McDonald’s, will serve meat — albeit grass-fed beef, and chicken and fish that are not fried, alongside vegetarian and vegan options.
The first LYFE, an acronym for “Love Your Food Everyday,” is scheduled to open in August in Palo Alto, Calif. The concept’s founder is Stephen Sidwell, an investor in British Columbia-based Garden Protein International, maker of the Gardein meat-free protein line. One of the chefs developing the LYFE menu, Tal Ronnen, is known for promoting vegan recipes.
Still, said Michael Donahue, a partner in LYFE, the menu will include meat because the founders “didn’t want it to be seen as a niche concept.” He added, however, that vegetarian consumers are looking for more than a veggie burger on a meat-filled menu.
Ronnen was recently hired by newly vegan Las Vegas gaming mogul Steve Wynn to add more plant-based entrées to restaurants throughout his Wynn Las Vegas and Encore casino-resort properties.
On-site giant Sodexo this year began promoting “Meatless Mondays” in more than 2,000 hospital, corporate and government accounts, with plans to add the program to all college and school sites in the fall.
Meatless Monday, a 2003 public health initiative designed to encourage plant-based dining at least once a week for better wellness and a healthier planet, has also been embraced by restaurateurs interested in promoting vegan and vegetarian specials.
Comfort food, redefined
Consumers want the variety of a fully plant-based menu, said Dollarhyde of Veggie Grill, which has plans to add as many as six restaurants next year.
Before joining Veggie Grill co-founders T.K. Pillan and Kevin Boylan as an equity partner, Dollarhyde helped to grow the Zoës Kitchen and Baja Fresh Mexican Grill concepts. His commitment to plant-based eating and the desire to prove that vegetarian and vegan food tastes good drew him to the concept.
“Most people think it involves a lot of brown rice and stir fries and bowls,” said Dollarhyde.
At Veggie Grill, however, the menu includes such dishes as burgers, crispy fried “chicken” filet sandwiches and carne asada — all made using a proprietary blend of wheat, soy proteins and vegetables to simulate meat.
A top-seller is the Santa Fe Crispy Chickin’ sandwich, made with the chain’s non-meat “chillin’ chickin’,” which is prepared in a coconut-milk batter, then breaded and fried. The filet is served on a wheat bun with Southwestern-spiced vegan mayonnaise, avocado, lettuce and tomato for $8.95.
Dollarhyde estimates 90 percent of Veggie Grill customers do not consider themselves vegetarian or vegan.
In 2010 Veggie Grill’s same-store sales were up 13 percent over the prior year, and even in recession-challenged 2009 the chain saw same-store sales climb 5 percent. Veggie Grill’s check average is about $12.
For now Veggie Grill is focusing growth on the vegetarian-friendly West Coast. But Daniel Dolan, chairman and chief executive of Chicago-based Native Foods, contends his brand has worldwide potential.
Founded in 1994 in Palm Springs, Calif., by vegan chef Tanya Petrovna, the fast-casual concept grew to five locations before the company was acquired in 2009 by a group of investors led by Dolan and his wife Andrea McGinty, founders of the It’s Just Lunch International dating service.
Dolan spent a few years tweaking the brand, then added two more units. Four more are scheduled to open in Chicago by fall, with six more slated for California and two or three in another unidentified Western state.
Wolfgang Puck Worldwide veteran Ron Biskin has joined as president and chief operating officer. Petrovna is executive chef.
Native Foods makes its seitan and tempeh vegetable proteins in-house. The “cheese” is made from nuts and seeds. Its signature Scorpion Burger, made with blackened tempeh, chipotle sauce, romaine lettuce, carrots, avocado and onions, sells for $8.95.
Dolan said Native Foods typically exceeds $750 per square foot in sales, with units around 3,000 square feet. That works out to about $2.3 million per year. The average check is $14 to $15, with all entrées under $10.
Dolan said Native Foods generated double-digit same-store sales increases in fiscal 2010. The chain then repeated that performance for the first quarter of 2011 ended April 18.
Dolan conceded that meat-free dining is likely to be less popular in certain areas.
“There are parts of the country where vegetarian food has a stigma to it,” he said. “We’re just going to have to go in and remove the stigma.”
Broad appeal
Not all meatless chain contenders are limited service. Since 1993, chef Ann Gentry has operated the vegan Real Food Daily in Los Angeles, a two-unit, full-service concept.
Gentry’s menu features organic, seasonal dishes in the vein of Alice Waters of Chez Panisse, but in a casual, chic setting. Entrées include Pizza Ya Can Eat-Za, with an herb cornmeal crust, sun-dried tomato pesto, tomatoes, spinach, basil, melted cashew and mozzarella cheeses, sautéed greens and cannellini beans for $14.25.
After years of attempting growth with the support of what Gentry calls her “FFFs: friends, family and fools,” lately the chef has won interest from private investors and venture capitalists.
Real Food Daily recently won a contract with HMSHost to operate at Los Angeles International Airport, and Gentry has signed a letter of intent for a third location near downtown L.A.
On the East Coast, the fast-casual Maoz Vegetarian is positioning itself for broad appeal with a familiar dish: the falafel.
Founded in 1991 in Amsterdam by Israeli immigrants, the concept has locations worldwide, including 13 in the United States. Another five are scheduled to open by year’s end. The first domestic Maoz opened in 2006.
Aviv Schwietzer, operations manager for Maoz USA, which holds the U.S. franchising rights, described the menu as meat free, although it includes eggs and feta cheese among falafel toppings. The average check is $8.50.
“Is the country ready for a national vegetarian chain? I think it’s a fact; it’s not really a question anymore,” Schwietzer said.
Contact Lisa Jennings at lisa.jennings@penton.com .
