Vegan fast-food restaurants face being wiped out across the UK after a chain backed by Lewis Hamilton and Leonardo DiCaprio closed half its branches, while another shop was forced to sell meat in order to stay afloat.
Experts have warned that the declining popularity of veganism could lead to more vegan restaurants going under in the next one or two years as they struggle to compete with larger meat-selling brands.
Co-founder of Veganuary Matthew Glover said that vegan start ups are being outmaneuvered by more established chains who have launched their own plant-based ranges, including the likes of Greggs and McDonald’s.
Helen Dewdney, also known as The Complaining Cow, added that many people are also abandoning veganism after realising that the lifestyle is much harder to maintain than initially thought.
She told MailOnline: ‘I think many people thought it would be easier than it is to find alternatives and still have a varied diet.
‘Many are looking to just reduce their meat intake and become part-time vegetarians or vegans which in turn means that food outlets serving only a vegan menu are seeing fewer and fewer customers through the doors.
‘The cost-of-living crisis is also having an effect, as consumers generally cut back on food, vegans are cutting back on faux meat products. Interestingly this is not just the UK and we are seeing this as a global trend.’
Elsewhere, Mr Glover told The Guardian: ‘Too many startups are competing with established companies that have launched vegan lines and with supermarkets that are investing in own-label plant-based ranges.
‘We’ve lost some brands and we’ll lose some more in the next 12 to 24 months.’
It comes after Neat Burger, backed by Leonardo DiCaprio and Lewis Hamilton, closed half of its London sites in December while a vegan restaurant in Cheshire has been forced to start serving meat because it has too few vegan customers
Beyond Meat, the vegan meat alternative giant which supplies the likes of McDonalds, Starbucks and Pizza Hut, also revealed it has suffered more losses.
The company’s revenue has been falling since last year with annual sales projected to fall to just $330million this year, compared with the 2021 high of $461million.
In November Beyond Meat CEO Ethan Brown told investors that the company is struggling to appeal to new customers because of perceptions that their plant-protein-based meat alternatives are overly processed and unhealthy.
Heather Mills, of vegan business VBites, announced her company had gone into administration in December 2023, after being hit by rising costs.
Sales of vegan food have been hit, as shoppers have been grappling with higher food prices and opting for meat and dairy products which are generally less expensive.
VGN Boulevard on Coventry Street in Stourbridge had been voted one of the top 10 vegan restaurants in the country for its decadent take on vegan fast food.
Their dishes included the cutting edge 3D-printed steak, a Fillay Oh Phish burger, and vegan whippy ice cream.
The restaurant collapsed under financial pressure in September 2023 as a result of the Covid pandemic after the loans they extended to help with furlough top-up payments prevented them from being able to make a profit.
V or V on Cornish Street in Sheffield, which picked up numerous accolades since opening in 2019, announced it closure in November 2023 at a huge loss to the vegan community.
A recent study revealed that plant-based fast-food meals had less protein and sodium, and higher levels of carbohydrates and sugar, compared to the meat-based meals.
Researchers analysed a total of 1,868 meals including sandwiches, salads, noodles and pizza from 50 fast food chains across five countries, including the UK.
These chains included Wagamama’s, Pret, Pizza Express, Leon and Burger King.
The team collected data on the calorie content, presence of allergens, and the quantities of nutrients, fibre and salt in each meal.
They found that overall, plant-based meals were not linked with having less calories.
Zoe Adjey, Senior Lecturer in Hospitality and Tourism at the University of East London, said vegan restaurants — like many hospitality businesses — are facing challenges staying open in the current economic climate, with rising rates and VAT taxes.
She said in future vegan restaurants will likely need to ‘broaden their menus and appeal to a wider range of customers’ beyond just vegans, in order to bring in enough revenue to remain viable.
‘In the past, vegan products were often not as high in quality or appetising compared to vegetarian options,’ Professor Adjey explained.
‘Vegan dishes tended to only appeal to people who were strictly vegan, while vegetarian dishes were consumed by both vegetarians and non-vegetarians. As a result, restaurants likely dealt with more food waste from unsold vegan dishes.
‘Looking ahead, it seems reasonable to predict that vegan offerings will continue to improve in taste and appeal.
‘With enhanced quality and flavor, vegan dishes could attract interest from a wider range of diners, beyond just those who follow a vegan diet.
‘This expanded appeal could lead to less food waste for restaurants, as more customers order popular vegan menu items.
‘By offering more varied and appetizing dishes that appeal to both vegan and non-vegan diners, these restaurants can potentially increase their customer base.
‘A wider selection of delicious and affordable options could attract more business and help offset the higher taxes and overhead costs vegan restaurants are dealing with.
‘Adapting their menus and marketing to entice omnivores and flexitarians, in addition to vegans, could help these niche restaurants survive in today’s tough market.’
Chef Charbel Hayek at eeetwell said: ‘The food world is changing. We’ve seen vegan restaurants closing and fast food chains dropping vegan items, but at eeetwell, we see this shift as a chance to really think about what eating well means.
‘What’s happening in the vegan world isn’t about vegan food losing its spark. It’s about people wanting more than just a meat substitute. They want real food that’s good for them, food that respects our planet. It’s about making sure every bite tells a story of care, quality, and respect for our earth.
‘Growing up in Lebanon, food was about great flavours and family recipes. Then, working at Mélisse in Los Angeles, I learned about bringing new twists to those traditions. Combining great flavours and new twists is what we do at eeetwell. Our menu has both plant-based foods and dishes with meat, but every choice is about being good to our bodies and the planet.
‘We’ve seen real growth in recent months and have launched new restaurants in the UK, Europe and the Middle East – showing the growing preference for good, unprocessed healthy food.’
Shokofeh Hejazi, a food trend expert from thefoodpeople, said the interest in veganism is still very much present, but it is ‘certainly changing and evolving.’
Ms Hejazi said people are ‘increasingly put off by plant based products’ that use lots of ‘unrecognizable ingredients to mimic meat’.
Instead, people are looking to celebrate vegetables in their ‘natural glory’ rather than as an alternative to meat products, recognising popular dishes such as broccoli steaks, buffalo cauliflower and portobello mushroom burgers.
She added: ‘People are really won over by these types of dishes, because they are recognisable as whole plants. As well as being tasty, they offer all the natural goodness of veggies as a bonus – like fibre, vitamins and nutrients.’
Robert Johnson is a UK-based business writer specializing in finance and entrepreneurship. With an eye for market trends and a keen interest in the corporate world, he offers readers valuable insights into business developments.
