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Meatless marches forward: Why QSRs should pay attention

There have been some false starts, but meatless products finally seem to be coming into their own, with research and development happening on a number of fronts, nationally and globally. Are QSRs ready and do they know where the products are coming from and how they will incorporate them into their menus?

December 8, 2017 by Darrel Suderman — President CEO, Food Technical Consulting

Meatless food products are forecast to grow steadily by 2021, from the current annual $700 million in sales to $850 million, according to Euromonitor International. In case you’re counting, that’s an opportunity for about $1 billion meat replacement product sales over that same time period. 

Through this shift from "natural" to "organic" to now meatless restaurant items, we’ve seen a progression in the whole category of "better-for-you" "all natural" products that is emblematic of the notion that the whole is bigger than the sum of its parts. For example, QSR powerhouse, Wendy’s "fresh-never-frozen" brand promise also epitomizes the "better for you" quality positioning. But, once these products reach a degree of consumer awareness saturation, food companies started developing and marketing “organic” food products.

In my opinion though, the QSR industry is not positioned for new product innovation leadership. This lack of innovation leadership has resulted from a growing dependence on QSR suppliers to provide new product "silver bullets" that every restaurant chain requests from the same suppliers. In turn, that supplier-customer relationship has defaulted to restaurant chains' research and development departments now becoming centers for line extension development. 

End result in my view?  The days of breakthrough product innovation — like the popcorn chicken that I co-developed at KFC — may be over unless restaurant chains implement efficient new product innovation processes.

Where new meatless and other new food product innovation is happening

New product innovation will come from either consumer packaged goods (CPG)  companies or private equity start-ups. Examples of CPG innovation-driven companies are PepsiCo, Nestle, Kellogg and General Mills. For instance, my former employer, PepsiCo — maker of Cheetos, Rice-A-Roni and Quaker Oats — earlier this year issued a request for proposals on "novel protein sources" for its snacks and beverages. PepsiCo is primarily focused on "plant-based" proteins but said it would consider insects or mycoproteins — an ingredient made from fermented fungus.

In my opinion though, the QSR industry is not positioned for new product innovation leadership. This lack of innovation leadership has resulted from a growing dependence on QSR suppliers to provide new product "silver bullets" that every restaurant chain requests from the same suppliers.

As for start-up companies, Beyond Meat appears to be the innovation leader with a product most like traditional meat hamburgers. They use coconut oil as their fat simulation and beet juice to replicate the red meat color. Other start-up companies include Memphis Meats Inc., Kuli-Kuli, Sweet Earth Foods, Aspire Food Group, Hampton Creek, Daiya, Tyson Foods, Amy’s Kitchen, Morning Star Farms, Light Life, Veggie Grill, Trader Joe's, Kit Hill, Engine 2  and Tropical. 

Food Technical Consulting (Full disclosure: This is my company)  recently developed and implemented a research program into meatless products at Colorado State University. Both the university and state of Colorado are putting $18 million into a state-of-the-art expansion of the current teaching, research and USDA inspection facility there and we have already evaluated various starch, pea, and bean products that enhance assorted meat properties.

But like the development happening on so many fronts around this idea of meatless food, there are plenty of other ingredients to look at. For instance, the list includes for us everything from a leaf, moringa and cricket protein to duckweed, kaniwa (seed) and meal worm powder.

In short then, it’s clear that meatless products are going to play a role and possibly a substantial one, in all of the food industry going forward. Restaurateurs do well to take note and begin thinking how to incorporate these offerings — whatever form they ultimately come in — into their line-ups. 

Photo: iStock