Today’s younger consumers, namely the Generation Z and millennial audiences, are very much into health and fitness, and are utilizing environmentally conscious, cruelty-free lifestyle choices whenever possible. All of these interests contribute to the recent rise of vegan restaurants, many of which mimic standard fast-food menus, but with plant-based ingredients. Look for lifestyle centers, mixed-use buildings and standalone drive-thru units, in mid- to upper income metros and college towns, to be especially ideal for these tenants. Popular co-tenants include health and fitness brands, as well as other fast-casual restaurants that this younger segment gravitates toward.
Ever since the advent of popular plant-based beef and chicken options from manufacturers such as Impossible Foods and Beyond Meat, quick-service restaurants have been quick to offer vegan choices on their menus, with even McDonald’s jumping on the trend with its McPlant vegan burger that is rumored to debut next year in select U.S. regions. With so much access to ingredient transparency for today’s discerning consumers, and with popular celebrities endorsing a vegan lifestyle (e.g., Ariana Grande), it seems the vegan movement is here to stay. It is no surprise that there has been a recent surge of vegan restaurant growth, especially in the fast-food/quick-service segment. Vegan dining establishments are not only popular with the ever-growing vegan community, but also with the “flexitarian” customers who occasionally dabble in a healthy vegan diet yet still want their restaurant options to closely resemble their favorite fast-food items. Be on the lookout for Cinnaholic, Plant Power Fast Food, PLNT Burger, as well as newcomers Stand-Up Burgers (an offshoot of Veggie Grill) and Pizzeria Halt to be expanding their reach in the future.
The Cinnaholic gourmet vegan dessert brand expects to open up to 20 new units per year over the next five years, with growth concentrated on new markets in the North where the brand is not as widely known as it is in the Southeast. Watch for college towns of the Big 10 schools to see growth, starting with markets in Indiana, especially in Lafayette, near Purdue University. Expect Indianapolis, Chicago, Ann Arbor, Mich., Portland, Ore., Philadelphia, New York City, Phoenix, Scottsdale and Tempe, Ariz., and college towns in New Jersey, such as New Brunswick, to see new units. Expansion will also continue in more markets throughout the South, including Atlanta, Nashville, Tenn., Coral Springs, Tampa and Orlando, Fla., Dallas, Houston and Austin, Texas. Cinnaholic prefers space in the 700- to 1,200-s.f. range in higher end lifestyle centers in city metros near colleges. In anticipation of its expected growth, Cinnaholic will be opening 10 new production facilities throughout the country that will supply their bakeries. The all-vegan baked goods at Cinnaholic are free of lactose, egg, dairy and cholesterol, and the bakery specializes in cinnamon rolls that can be customized with different frosting flavors and toppings, such as marshmallows and pie crumbles. The bakery also serves other dessert items such as banana bread, cookies and brownies.
The Plant Power Fast Food franchise is on track to open between five and 10 new units per year over the next three years. The vegan fast-food brand secured a $7.5M Series A funding round, led by Eat Beyond Global Holdings, Helia Capital USA and Batta Foods, which will be used to expand both its corporate and franchised units. Growth will take place in the Pacific Northwest and California, specifically throughout Sacramento, as well as Orange County and San Diego, in addition to markets in Nevada, Arizona and Texas, followed by growth into Colorado, Utah and New Mexico. Ideal locations are standalone fast-food buildings, including outparcel space in power centers, with a drive thru and/or a pickup window, such as former Burger King and Boston Market spaces, in the 2,000- to 4,000-s.f. range. Space can also be shared with a co-tenant, such as its 3,000-s.f. unit in Enterprise, Nev., expected to open later this year, which shares building space with the 4,154-s.f. Broken Yolk Café. The brand is also interested in ground floor mixed-use sites, preferably end caps, either on retail streetfront space or in college campus residences, the latter which opened in August at U.C. San Diego’s North Torrey Pines Living and Learning Neighborhood commercial/residential development. With its demographic consisting primarily of Gen Z-ers, Plant Power Fast Food especially seeks retail-heavy metro and suburban neighborhoods preferably near colleges and up-and-coming areas with multifamily developments and offices in the vicinity. Locations should be within easy access to freeways. Plant Power Fast Food provides vegan, plant-based alternatives to comfort food staples such as burgers, chicken nuggets, buffalo wings, fries and shakes, and all of its food is free of cholesterol, hydrogenated oils, high-fructose corn syrup, and artificial flavors and colors.
PLNT Burger also anticipates opening between five and 10 new units per year over the next three years. The brand, which had previously been opening its restaurants in select Whole Foods Market locations, is now concentrating on standalone units, beginning with its 850-s.f. unit expected to open before the end of the year in an inline space in New York’s Union Square. The space will be primarily focused on take-out orders but will accommodate limited counter seating. PLNT Burger will continue to seek new units, up to 1,000 s.f., in high-traffic metros in the Northeast, especially in New York City, as well as throughout New Jersey, and the brand has hinted at growth on the West Coast, namely, Portland, Ore. PLNT Burger is currently eyeing potential markets in the top MSAs for growth, including Dallas, Denver, Orlando, Fla., Columbus, Ohio, Phoenix, Philadelphia, Kansas City and Chicago. Look for PLNT Burger to target mid- to upper income neighborhoods with a large number of millennials, including spaces in mixed-use multifamily buildings. PLNT Burger is famous for offering the same staples as any other fast-food restaurant, but with all plant-based ingredients for its burgers, cheeseburgers, hot dogs, french fries and oat-based soft serve ice cream.
In March, Veggie Grill, a fast-casual vegan restaurant chain with 30 units, premiered a new offshoot of its brand, called Stand-Up Burgers, which will cater more specifically to the plant-based fast-food hamburger/cheeseburger/chicken sandwich crowd. Its three units that opened were in underperforming Veggie Grill locations, in inline or end cap retail street-front and ground-floor mixed-use spaces in the 2,000- to 3,000-s.f. range. Veggie Grill anticipates opening at least two more before the end of 2021, and up to four more in 2022. By late 2022, Veggie Grill expects to begin franchising the Stand-Up Burgers concept, and opening in smaller spaces, closer to 2,000 s.f., in more youth-oriented urban markets with a large number of Generation Z-ers. Expect growth to be in high-density coastal towns near college campuses, potentially in markets where Veggie Grill already has a presence such as New York City, Portland, Ore., Seattle and throughout California.
Stand-Up Burgers features vegan versions of items such as barbecue bacon cheeseburgers, crispy chicken sandwiches and french fries with grilled onions.
Another new vegan brand is Pizzeria Halt, which began franchising its all-vegan pizza concept earlier this year after opening its first restaurant in Modesto, Calif., in 2020. A franchisee will be opening a 1,613-s.f. inline unit at a power center in Cherry Hill, N.J., which is located less than 10 miles from Philadelphia with co-tenants such as Five Below, Whole Foods Market, Qdoba Mexican Eats, BurgerFi and Bath & Body Works. Pizzeria Halt is expected to open additional franchised units in Illinois, Texas and throughout California. The franchise ideally seeks inline and end cap space between 1,150 and 3,000 s.f. Expect new units to pop up in neighborhood strip centers, grocery-anchored power centers and urban retail street-front spaces in neighborhoods with a large ethnic population, as its all-vegan pizzas combine fusion flavors that incorporate Mexican, Indian and American elements. The franchise is hopeful that by 2022, it can open between five and 10 new units per year over the next two years. Its restaurants serve lactose-free cheese substitutes, plant-based meats and use proprietary oven technology that provides a finished crust in a Neapolitan-style.
