Vegetarian Niche Appeal Broadens to Mainstream
Introduction
As fortunate as we are at The Culinary Edge to be located in the two most dynamic cities in US food, we don't assume that what succeeds here will export to other parts of the country. Vegetarian and meat-optional eating has been on the rise in cities along the coast for some years, but increasingly we are observing it in other cities and in the consumer packaged food world.
Vegetarian & Vegan Eating By the Numbers
- 4-10% of the American population calls itself vegetarian (12.1 million to 30 million, based on April 2008's reading of the US Census Bureau's population clock)*
- However, only 2.8% of the population claims to never eat meat (8.5 million)*
- There are 591,468 vegans in the US population (0.2%)**
- Women are twice as likely to be vegetarian than men**
- Key drivers of the decision to go veggie:
- 82%: Health
- 75%: Ethics / concern for the environment / animal rights
*Source: Harris Poll, 2003
**Source: Vegan Resource Group's "Land 'o
Lakes" research
Market Size
Despite recent growth this market is still relatively small. The question that inspired this newsletter topic is whether the trend is set to broaden out to the mainstream. Mintel has in the past estimated the value of the market offering that directly replaces meat or other animal products is $1.5 billion. This data precedes the recent rise in product availability and also excludes foods that vegetarians have traditionally considered staples: pasta, produce and rice.
This month at the Natural Products Expo West show in Anaheim, California, the convention showcased thousands of hot concept product launches that included an entire vegetarian-themed pavilion, for the first time in the show's history. More than 170 companies listed vegan products among their offerings at the show.
A Wider Audience
These meat-free products appeal to a broader market than the
committed vegetarian and vegan eaters. Data from past years has sized the
market of consumers at a minimum of:
- Vegetarian-Inclined: 38.6 - 48.2 million Americans
(20-25% of the total population)
- Eating 4+ or more meatless meals per week - Health-Conscious Balancers: 67.6 - 96.5 million
Americans (35-50%)
o
- Eating 2 to 3 meatless meals per week
It is this alignment between what consumers believe is good for the body and what is good for the environment that seems to be driving this change in eating habits. One of the by-products is a new vocabulary for the nuanced ways in which we approach balancing our diets:
Source:
http://www.vegsoc.org/info/definitions.html
Perceived Benefits
Health
The American Dietetic Association's position is
that appropriately planned vegetarian diets are healthful, nutritionally
adequate and provide health benefits in prevention and treatment of
certain diseases, such as:
- Obesity
- Cardiovascular disease
- Hypertension
- Diabetes
- Cancer
- Renal disease
Food Safety
The recent beef recall by Westland/Hallmark, from
its Chino, California location may have cemented a broader market
opportunity for meat replacement products. Of the 143 million tons of meat
that was recalled, 37 million tons went to make hamburgers, chili and
tacos for school lunches and other federal programs.
With concerns running high among parents and school districts a growing number of mainstream consumers will look for healthy protein sources.
Restaurants and Dining Out
We have seen an undeniable increase in vegetarian and vegan food offerings, in our food touring in the past 12 months in all US major cities. What follows is a snapshot of national restaurant chains, and some highlights from the San Francisco Bay Area.
Quick Serve Restaurant Chains are not responding quickly to this trend
Our review of the top 10 QSR offerings showed that not one of these giants has responded to this market opportunity by heavily promoting a vegetarian option, though Subway and, to a lesser extent, Taco Bell are making smart plays to position meat-free menu items as healthy.
| Chain | Sales 2007 ($ million) |
Snapshot of Vegetarian Offering |
| McDonalds | $27,100 | 'Premium salads' available without chickent |
| Burger King | $8,514 | 'Veggie burger' and 'Garden salad' |
| Wendy's | &7,800 | 'Veggie delite' sandwich |
| Taco Bell | $6,300 | 'Fresco menu' with bean and cheese burrito |
| Starbucks | $5,495 | 'Noodle salads' and 'breakfast sandwiches' |
| KFC | $5,300 | Salads |
| Pizza Hut | $5,200 | 'Veggie lover' pizza and 'Cheese lover' pizza |
| Dunkin Donuts | $4,313 | Breakfast, pizza and sandwich menu includes sausage and bacon in nearly all items |
| Sonic Drive-in | $3,321 | No menued veg-friendly sandwiches, burgers, wraps or salads |
Source: The Culinary Edge Web-based menu research, March 2008.
QSR Highlights
Noodles and
Company: With annual sales exceeding $75.9 million and more than 150 units
across multiple regions of the US, this fast casual concept has truly
established itself as a leading light. Conceived by an entrepreneurial
young brand manager at Pepsi who was inspired to bring American, Asian
and Mediterranean tastes together in a unique way -- noodles, soups and
salads are available from all three culinary traditions. Each dish
appears on the menu board without meat, but protein additions appear as
suggestions.
This concept has created buzz among consumers and industry types, it was named Hot Concept of the Year by Nation's Restaurant News in 2001 and Kennedy won Ernst & Young's "Entrepreneur of the Year" in with Health Magazine awarding it status as "Healthiest fast food." "Our mantra is 'wholesome, pure food, that's highly craveable every week,'" Kennedy says. Our take is that this is a leader in the category that has an offering with the right price point, nutritional profile and breadth of selection to build a loyal and high frequency customer base.
Noodles and Company's Sample Menu Items:
Chinese
Chop Salad tossed with Asian vinaigrette with field greens, red bell
peppers, carrots, Asian sprouts, cucumbers, napa cabbage, crunchy wontons
and black sesame seeds.
Wisconsin Mac and Cheese with homemade cheese sauce, cheddar cheese, jack cheese and elbow noodles.
Pesto Cavatappi: fresh basil and garlic pesto sauce tossed with a touch of cream, parmesan and olive oil with curly cavatappi noodles.
Japanese Pan Noodles with brocolli, carrots, shiitake mushrooms, Asian sprouts, black sesame, cilanro and udon noodles.
Casual Dining Restaurant Chains
To get a feel for what the most innovative chains are offering in casual dining, we looked at the top 10 highest growth chains. We called one location from each chain to ask the same question "What do you have on your menu that's suitable for vegetarians." Not surprisingly, as many of these chains are grill, BBQ or steakhouse focused, there were slim pickings for non-meat eaters.
| Chain | 2006 Sales ($000) | Change % | Vegetarian Offering |
| Cheeseburger in Paradise | $120,000 | 62% | Veggie burgers and sides |
| Yard House | $114,140 | 50% | Portabella burger, salads, "everything on the menu can be cooked vegetarian" |
| Boston's The Gourmet Pizza | $98,000 | 47% | 3 menued pizzas, and "any pizza, pasta or salad can be ordered without meat" |
| Famous Dave's | $378,000 | 40% | "You can order the salads without meat" and there are fish menu items |
| Bonefish Grill | $327,000 | 39% | "Nothing menued, but can do pasta without meat" |
| BJ's Restaurant & Brewery | $242,000 | 34% | Vegetarian pizza, avocado egg rolls, salads can be ordered without meat |
| Flemings Prime Steakhouse | $200,000 | 33% | Vegetable sides, no main dishes |
| Buffalo Wild Wings Grill | $869,047 | 32% | No menued items "but you could have the chicken caesar wrap without the chicken" |
| Abuelo's Mexican Food Embassy | $107,400 | 28% | "No sorry, the refried beans have pork in them. And we don't have other bean choices" |
| Bubba Gump Shrimp Company | $126,000 | 26% | "Yes we have fruit salad, garlic bread, classic caesar you can order without chicken, onion rings, but nothing in the entrées specifically for vegetarians. Sorry." |
Source: The Culinary Edge menu research, March 2008.
Fine Dining Highlights
In fine dining the following continue to prove to be important and influential innovators:
Michael Mina: The San Francisco restaurant at Union Square serves a vegetarian, 6-course tasting menu for $105 per person that can be adapted to a 3-course.
Sample items from April's vegetarian tasting menu:
Santa Barbara white asparagus served with nettle hollandaise sauce
Cardoon gratin, with black winter truffle and cheese, served with choke chips
Black trumpet mushroom tortellini
Houstons:This national chain with a famously meaty menu won
praise from the likes of PETA's tasting panel who voted its vegan burger
the best in the nation. The PETA panelists described the meatless
burger as "massive, and very tender with a rich, smoky barbecue flavor."
Type in the search term "Houston's vegan burger" and you'll find that
there are more than 95,000 online references, and though the restaurant's
recipe remains a mystery there are many who have attempted to
reverse-engineer the burger. Most copycat recipes contain a combination of black
beans, brown rice and finely chopped beets. Topped with cheese (for
vegetarians) and served with fries this classic is served open faced with
all the standard toppings a burger lover expects.
Ubuntu,
is a vegetarian restaurant with an adjoining yoga studio, located in
the Napa Valley which has generated a buzz that even the likes of NY
Times food critic Frank Bruni has added to. Given the fact that Ubuntu's
menu is meat free and served alongside a yoga studio, you would expect
that it would be an exercise in austerity and self-denial. Bruni's
verdict clarifies that misconception: "Ubuntu is where virtue meets naughty
sensuality. It's the Angelina Jolie of restaurants," he says,
commenting that tofu and brown rice were nowhere to be seen.
Ubuntu's Sample Menu Items:
Marcona almonds dusted with sea salt and lavender sugar
Cauliflower three ways (roasted in thin slices, pureed with cream, chopped raw into a crunchy couscous)
Roasted frisee, poached egg on a crisp hunk of toasted brioche
To find out more, go to www.theculinaryedge.com
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