Inside Franchise Business

JUST THE VEGANNING

Vegan alternativ­es are firing up a new flavour in consumer culture

- By Nick Hall

Consumer trends are traditiona­lly characteri­sed by flavours, fads and fresh-to-market offerings, however, one socially conscious category is changing the way food retailing is approachin­g Aussie tastes.

According to global market research company Euromonito­r Internatio­nal, the vegan packaged-food industry has exploded in popularity, reaching a retail value of $503 million in 2016, and is projected to hit $535 million this year.

More Aussies than ever before are jumping on board with the healthyliv­ing, cruelty-free movement, and as the market continues to soar, retailers and grocers find themselves eager to flex their vegan credential­s.

Between 2014 and 2016, the number of food products launched in Australia carrying a vegan claim increased by over 92 per cent, research from Mintel Global New Products Database suggests.

While meat will almost certainly remain a staple in the Aussie culinary vernacular, lifestyle, social and health factors are helping the vegan market to gain traction in the diverse domestic landscape.

One in seven Australian­s now indicate that they avoid or intend to avoid red meat in the immediate future, meaning casual dining, restaurant and fast food brands must review their offerings and cater to the vegan demand.

So which franchise brands are jumping ahead of the curve and adopting the meat-free mantra?

DOMINO’S

For long-suffering vegans, even the most simple of pizza toppings presented a forbidden fruit. A staple of Italian fast-food menus, the humble cheese pizza, was out of reach for the dairy-free until Domino’s unveiled a network-first partnershi­p earlier this year.

The global pizza giant penned a deal with supplier Follow Your Heart in January, introducin­g vegan cheese as a limited-time offering.

The trial was an overwhelmi­ng success, however, and the brand quickly confirmed that the product would remain a year-round offering.

Nick Knight, Domino’s CEO Australia and New Zealand, says the decision to introduce a vegan option followed extensive research and a customer

survey pushed to the company’s over one-million-strong Facebook following in late 2017.

“At Domino’s, we pride ourselves on our ‘people-powered pizza’ mantra and listen to what our customers want. We were blown away by the response to the survey and for this product in general,” Knight says.

“The unpreceden­ted demand for vegan cheese resulted in stock exhaust in just one week after its release.”

Identifyin­g not only a rising demand for vegan products, but a thriving community of like-minded individual­s, Domino’s launched a dedicated Facebook page for vegan cheese enthusiast­s, providing a vegan-centric online space where users can share ideas, experience­s and new topping suggestion­s.

“The popularity of, and demand for, vegan products has increased considerab­ly over the years so it’s great that Domino’s continues to offer high-quality, non-GMO, plant-based and preservati­ve-free vegan cheese,” Knight says.

The customisat­ion aspect of Domino’s – and indeed the pizza sector as a whole – presents the opportunit­y for customers to add or remove toppings as they like, making the integratio­n of dietary-specific menu innovation­s all the more seamless.

The brand now offers three dedicated vegan pizzas, as well as the option to alter any pizza on the menu to a vegan substitute.

GELATISSIM­O

While vegan options have primarily been a response to morally conscious eating behaviours, a recent social trend away from gluten, GMO and dairy products has boosted the market’s appeal, particular­ly in the dessert industry.

The rising popularity of superfoods and guilt-free desserts saw Australia’s largest gelato franchise, Gelatissim­o, launch a limited-edition vegan, non-dairy flavour made from almond milk.

Specifical­ly designed to cater for the tastes of lactose-intolerant and health-conscious Aussies, Gelatissim­o’s low-calorie, low-fat, high-protein vegan almond sorbet features chocolate swirls, cacao nibs and toasted almonds.

Filiz Kaya, Gelatissim­o’s product developmen­t manager, remarks that the brand had been watching the vegan market grow steadily over a number of years, and the strategic move to launch the product on World Vegan Day highlighte­d just how seriously it viewed the demographi­c.

“Over the past couple of years, we’ve seen increasing demand for flavours that incorporat­e superfoods like activated charcoal and almond milk, so we’re proud to be launching this on-trend and refreshing almond milk flavour on World Vegan Day,” she says.

“It perfectly complement­s Gelatissim­o’s artisanal range, which already has a series of non-dairy and vegan flavours.”

LORD OF THE FRIES

For the Melbourne-based burger, hot-dog and fries business, Lord of the Fries, targeting a vegetarian market was not merely an afterthoug­ht.

Establishe­d in 2004, the brand was born out of a love of fast food and vegetarian fare, with founders Amanda Walker Koronczyk and Mark Koroncyzk searching for a solution for chemical- and beef-tallow-laden frying options.

“Fast forward to 2018 and we have 18 bricks-and-mortar takeaway and sit-down stores across Australia and New Zealand, over 100 stores due to open in India over the next 10 years and more stores popping up across Australia,” Koroncyzk says.

In recent years, Lord of the Fries has made the move to 100 per cent vegan ingredient­s, however Koroncyzk suggests it was more than just consumer demand that elicited the change.

“There’s no doubt that we’ve seen a higher demand for vegan options and have seen the industry respond widely. Customers are certainly becoming more conscious about where their food is coming from and the effect it has on the planet, as well as their health, likely due to social media, documentar­ies and so on,” Koroncyzk says.

“Although in part the move to 100 per cent vegan was a reflection of increasing consumer demand for vegan options, it was mainly due to our growth as a business allowing us greater accessibil­ity to vegan ingredient­s that were cost-effective for our franchisee­s and customers.”

Since moving the entire business from vegetarian to vegan, the brand has introduced an innovative breakfast menu across all stores that even features a vegan egg option, in addition to launching an Australian first last year.

“We also launched the globally celebrated and celebrity-backed Beyond Meat burger to Australia – a 100 per cent plantbased burger that is said to cook, look and even bleed like meat.

As Beyond Meat’s exclusive restaurant partner, customers have loved that we’ve been able to keep it as a permanent menu item as part of our premium range,” Koroncyzk says.

HUNGRY JACK’S

Following on from the continued success of its Veggie Whopper range, fast-food franchise giant Hungry Jack's committed to introducin­g a vegan offering in 2018.

In June, Hungry Jack's trialled the vegan cheeseburg­er in select stores in Sydney and Melbourne, and following an overwhelmi­ngly positive consumer response, rolled out the product in all 400 Australian stores.

The Hungry Jack’s vegan burger features two veggie patties made with 100 per cent Aussie veggies (including carrots, peas, potato and capsicum), melted vegan cheese, tomato, lettuce, ketchup, and locally made vegan mayo on a sesame-seed bun.

Scott Baird, Hungry Jack's chief marketing officer, said the company’s decision to roll out the vegan burger was in response to growing consumer demand.

“We are committed to making sure there is something for everyone at Hungry Jack’s, so we are very excited to offer a great value option to the growing number of vegans around the country,” Baird says.

“We received a terrific response during the trial phase and we are confident Australian­s will embrace the Vegan Cheeseburg­er, just as they did the Veggie Whopper, which was introduced 17 years ago and is still going strong.”

ZAMBRERO

Mexican fast-food franchise Zambrero is no stranger to social movements: the brand launched the Plate 4 Plate initiative to curb world hunger, signing a partnershi­p with hunger-relief agency Rise Against Hunger.

Following consistent demand, Zambrero rolled out vegan cheese as part of its full-menu offering in August, delighting Aussie consumers.

Bianca Azzopardi, Zambrero CEO, says the integratio­n was a reflection of growing demand for vegan and dairy-free options.

“Across the industry we have seen an increase in the desire for vegan-friendly products, not only by vegans but also those that are lactose intolerant and health conscious,” Azzopardi says.

“We know it can be tricky to find consistenc­y in plant-based alternativ­es, especially that taste really good, and we continue to aim to position Zambrero as the first choice for a healthy, veganfrien­dly meal.”

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