The vegan restaurant world is undergoing a boom-and-bust cycle that’s deeply fascinating to watch as businesses try to navigate fast-shifting consumer desires and economic realities. Unity Diner has come up with a greener tofish, a plant-based alternative to fish and chips. This plate serves up the innovation that restaurateurs are dabbling with to attract diners back in. Meanwhile, Eleven Madison Park (EMP) has gained acclaim as the world’s only plant-based establishment to earn three Michelin stars, offering a high-end dining experience with a $335 vegan menu featuring unique dishes like tonburi with pea cream and baby lettuce.
New recent statistics show a scary picture in the UK’s hospitality industry. Between January and March this year the country saw an average of 20 restaurants, pubs and hotels go under every week. This sharp decline furthers worries about the long-term viability of vegan businesses in light of increasing inflation and changing consumer dietary preferences. According to The Vegan Society, nearly 2 million Britons are vegan or mostly eat plant-based. This increase is driven in part by campaigns such as Veganuary, which encouraged an estimated 25.8 million people globally to go vegan for January 2023.
While consumer appetite for plant-based alternatives continues to expand, some companies are learning the hard way that it’s getting harder to succeed in this space. Preferred Veganuary partner Unity Diner in London said that its monthly profits tripled throughout the month of Veganuary. That just goes to show you that people still love vegan food! As co-founder Andy Crumpton later confessed, before turning the tide, they too had suffered pretty significant losses before getting their financial house in order.
“We heard from so many people – longtime customers, staff past and present, fellow founders – and it reminded us why we started in the first place. The message we kept getting was: ‘You mattered.’” – Rachel Hugh
Even with these wins, the battle for vegan dining access is complex and layered. In particular, inflation has taken a brutal toll on businesses such as Vurger Co. As co-founder Hugh has pointed out, the difficult economic environment is creating headwinds for staying profitable. Likewise, Herbivorous, a small plant-based chain, recently shuttered after being hemmed in by crushing debt.
“It seems you can’t open social media at the moment without reading about another hospitality business closing down.” – Herbivorous
The decision by Eleven Madison Park to reintroduce meat to its menu this autumn raises questions about the future direction of plant-based dining. Chef and owner Daniel Humm framed the decision in terms of inclusivity, stating “… the future of food is inclusive.
“The best way to continue to champion plant-based cooking is to let everyone participate around the table.” – Daniel Humm
For vegan influencer Clare Every, this refrain resonates on a spiritual level. She writes about her experiences on her blog, The Little London Vegan. She emphasizes that most consumers have a lot of misunderstandings when it comes to plant-based foods.
“People either think: ‘Oh, it’s too healthy, there’s no protein, that’s not going to fill me up,’ or they think: ‘Oh, it’s processed, it’s not healthy.’” – Clare Every
Every’s observations highlight a larger issue in the vegan movement. Health and nutritional considerations are significant barriers for many potential customers who want to adopt plant-based diets, but aren’t quite ready to make the leap. The main reason half of Europeans don’t eat plant-based meat and dairy substitutes is that they want to avoid ultra-processed foods.
Yet as restaurants contend with these challenges, they’re responding to changing consumer tastes and demands. The demand for plant-based food continues to grow especially by people who seek to have their food choices reflect their values. INC’s Rachel Hugh recognizes this increasing demand while emphasizing that without structural support these businesses aren’t able to thrive.
“What’s missing is the structural support to help those businesses thrive.” – Rachel Hugh
Unity Diner’s path to success paints a picture of what is possible and highlights the harsh truths of navigating this challenging niche market. As Crumpton admitted honestly, they are not yet turning a profit and have at least stopped the bleeding on deeper losses.
“I don’t think we’re making any money, but we’re not losing money, put it that way.” – Andy Crumpton
While some restaurants continue to innovate and attract customers with exciting vegan options, others have struggled to stay afloat amidst financial pressures and changing consumer behavior. Vegan dining is a market that is moving very quickly. On the ground, restaurants are innovating to address pressing challenges and meet the needs of today’s market.