Lex on Tech

Plant-based impacts on hospitality A major shift in meat consumption is far from ‘impossible’ By Lex Nepomuceno, Executive Editor

Last January I attended the Consumer Electronics Show (CES) and was surprised to see that the makers of The Impossible Burger had a huge presence at the conference. Soy-based burger patties aren’t the first thing that comes to mind when someone mentions new tech, but that sort of innovation is just as worthy of the tech label as a VR headset. Technology, as defined by Merriam Webster is “the application of scientific knowledge for practical purposes, especially in industry.” Plant-based food companies are creating products that fit exactly that description.

Corporate responsibility today Vegetarianism and veganism are more than just trends. It used to be that vegetarians chose their diet solely because they placed a high value on animal life. This paradigm has shifted as climate change has become an increasingly important topic and people have started to identify factory farming as a major contributor to total carbon emissions. The Vegan Society purports that interest in veganism increased sevenfold between 2014 and 2019.

To match the explosion in vegan diets, and to acknowledge that this trend may be here to stay, companies whose entire business model is built around meat have started to adopt plant-based alternatives. KFC has introduced Beyond Fried Chicken and Burger King has been advertising the Impossible Whopper extensively. Of all the major American fast food chains, only Arby’s has vowed to stay free of plant-based imitation meat, and actually sparked some controversy when they unveiled their Meat-based vegetable menu. Only Arby’s has committed to appeal solely to the 40% of the global population that is expected by Kearney consultants to be eating exclusively real meat by 2040.

Disrupting the market Indeed, optimism for plant-based protein is higher than it has ever been. Beyond Meat had a set initial public offering price of $25 and closed that day at $65.75, outperforming any single day initial

public offering gain since Palm Pilot in 2000. As you may know, the makers of the Palm Pilot who ceased

operations ten years later in 2010 did not live up to long-term expectations. Will Beyond

meat be as short lived as they were? It’s hard to tell, but just as Palm was the first in the smartphone industry that dominates the cell phone market today, Beyond Meat is on the leading edge of plant-based food production and it seems safe to say that the industry is here to stay.

Imitation meat is not a new concept. Boca Burger was founded in 1993 and was a popular item in freezers all over America. Boca’s main ingredient is the same as the Impossible Burger, soy protein, so why is the Boca Burger irrelevant while Impossible Foods’ stock is well above $100? A combination of innovation and demand are to blame. As vegetarian and veganism explode, companies have found ways to make vegan options taste shockingly similar to their meaty counterparts. That matters because 92% of plant-based alternatives were consumed by non-vegans in 2018. As lifelong meat eaters begin to experiment with plant-based alternatives, fast-food chains are locked in a battle for brand loyalty.

Though the future isn’t certain, it looks like plant-based protein is here to stay, and you can expect large chains to continue to add meat alternatives to their menus. With the amount of effort that has been put into making a delicious soy burger, only time can tell what’s next. Maybe by 2021 we will have Impossible Bacon that tastes even better than the real thing.

How are you planning to take advantage of this new technology trend? Email me at lexn@wahospitality.org and let me know if there is a plant-based strategy for your restaurant or hotel in the near future. I will be sure to share some of the top member ideas in a future Lex on Tech. 