In 2020, McDonald’s introduced its McPlant burger and Burger King its Rebel Whopper, both plant-based burgers, to meet the demands of a growing number of consumers cutting down on meat consumption.
Veggie Grill, a chain of 29 vegetarian eateries, launched Stand-Up Burgers in Berkeley, California on March 10, 2021, specializing in plant-based burgers. It replaced a Veggie Grill outpost, which was underperforming.
Creating specialty restaurants that concentrate in plant-based burgers is one way to boost revenue when fewer people are dining out.
But Veggie Grill, like many restaurant chains, has faced a difficult period due to the pandemic. In fact, it shuttered four locations this year. It once had 36 locations.
Why did it to have to shutter four of its outposts? Pillan replies that “They weren’t great performers pre-pandemic and, we decided it wasn’t worth the effort to run them through this pandemic situation.”
And coming soon will be two more Stand-Up Burgers, both in Chicago, opening in late April and mid-May, and a new Veggie Grill in West Hollywood in late summer. It’ll be back up to 33 locations at that point.
Why open a burger specialty eatery now? T. K. Pillan, one of its founders, based in Culver City, California, replied that “The world is ready for a pure plant-based burger joint.” When it first opened Veggie Grill in 2006, with a menu of salad bowls, burgers and sandwiches, the time wasn’t ripe for it.
Pillan said he was encouraged by the larger fast-food chains introducing plant-based burgers because “it showed the demand.” But it can’t match Stand-Up Burger’s version with its “plant-based mayo, plant-based cheese and bun,” he asserts.
Stand-Up Burgers’ menu includes plant-based bbq bacon cheeseburgers and freebird crispy chicken sandwiches, salads, wraps, fries and shakes.
Despite their alluring names, the bacon burger is really tempeh, a traditional soy product made from fermented soybeans, and the crispy chicken is really Gardein Chick’n, which is made from a combination of soy, wheat, pea proteins, plus grains like quinoa.
The pandemic upended how Veggie Grill generates revenue. In the pre-pandemic days, it reaped about 50% from indoor dining, but during the pandemic, 90% of sales derived from off premises, combining take-out and delivery.
Since Veggie Grill offers three kinds of burgers on its menu, why did it need to create a separate entity dedicated to vege-burgers? Pillan replied, “It allows us to do more with the burger. With most restaurants, you can only be so great at so many things.”
Stand-Up Burgers, in fact, has five variations of its burgers and also offers healthy shakes, which Veggie Grill doesn’t. The shakes are all-plant-based, and even Pillan acknowledges that it’s not “marketing them as low-calorie,” but he adds they don’t contain cholesterol or animal fats.
But Pillan clarifies why Stand-Up Burgers sells Impossible Burger and Veggie Grill’s menu carries, instead, the Beyond Burger. Why the disparity? Pillan explains that for its new burger specialty outpost, Impossible was a better fit. “At the end of the day, they have the extra fat,” he says, indicating that Stand-Up Burgers is about enjoyment as well as sustainable food.
In winter 2020, Veggie Grill also introduced its Mas Veggie Tacqueria, a series of ghost kitchens at its 29 outposts that concentrate on, what Pillan describes as “craveable, convenient Mexican food that is 100% plant-based.”
To keep revenue flowing, it has emphasized its digital channels, take-out and third-party delivery and patio dining. It has spiced up things by selling limited time specials such as orange chicken or double bbq mac burgers, to trigger consumer interest.
Its new burger locations operate in a smaller footprint, with a streamlined menu, compared to Veggie Grill’s. In fact, he says the new footprint will be easier to franchise, which he expects to begin in 2022. All of the Veggie Grill’s are company-owned.
He describes the keys to its future success as proving there’s a substantial market for plant-based burgers and shakes, and the rest involves running a restaurant 101, namely great food and responsive service, provided at a fair value.