2019’s Most Newsworthy Item in the Burger Segment: The Plant-Based Explosion

Without a doubt, the biggest trend in the burger segment of the franchise industry this year was the rise of plant-based meat alternatives. As millennials demand healthier and more eco-friendly food options, brands like Impossible Burger and Beyond Meat have begun revolutionizing the quick-service restaurant industry by partnering with some of the segment’s biggest franchise brands. As opposed to the vegetarian options of the past, this new generation of plant-based proteins smells, tastes and even bleeds like real meat. 

It started in January when Carl’s Jr. cooked up a partnership with Beyond Meat to roll out The Beyond Famous Star burger at 1,100 locations nationwide. After the success of Carl’s Jr., tons of brands in the burger segment began following suit, including sister brand Hardee’s and White Castle.

The biggest moment came in June when Burger King launched its Impossible Whopper nationwide in an effort to appeal to both long-time vegetarians and a younger, more eco-conscious audience. The offering was an explosive success, with Burger King experiencing a 17% increase in visits from the previous month. 

In fact, the rollout may have been too successful. In May, the demand for Burger King’s Impossible Whopper proved to be too much for the Impossible Foods company to keep up with. While the shortage hit independent operators the hardest, QSR chains like White Castle and Red Robin even reported shortages of the plant-based patties. Although meat alternatives require only a fraction of the resources of real meat, the production process is comparatively expensive and time-consuming.

Most recently, McDonald’s has taken notice of the plant-based trend and recently announced its partnership with Beyond Meat and its plan to launch a P.L.T. (a.k.a. Plant, Lettuce and Tomato) item in Canada. As the biggest player in the burger segment, the partnership is bound to make an impression on the franchising industry as a whole. 

Since Beyond Meat made its public market debut earlier this year, the brand’s restaurant and foodservice revenue have increased by 486%, growing to $58.3 million in the first half of 2019. Beyond's restaurant and foodservice division are now responsible for roughly half of the plant-based meat company's revenue, with retail driving $53.7 million. Impossible Foods recently turned to OSI, a popular meat producer, to help fabricate faux meat.

Still, many franchisors are asking if the trend is here to stay. Either way, shortages may not be a problem for anyone if 2019’s plant-based buzz is destined to fade away. Recent research that suggests most burger-loving Americans are overwhelmingly still ordering beef at QSRs. Although plant-based meat alternatives have been on the lips of everyone in the burger segment, it's unclear whether consumers are just momentarily curious about plant-based foods or whether this newsworthy trend is in it for the long haul.