Professional Documents
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Offerings Dilute
in 2013, he envisioned it as a price, he took her advice and
macho alternative to salad bars shifted gears. Together they
Our Brand? and smoothie shops for the pitched the idea to the partners
health-conscious. He’d origi- at her company, who agreed to
nally intended to open a steak give them seed funding.
by Lena G. Goldberg and house—a “Valhalla for carni- Now, nine years later, Protein
This case study examines whether offering vegan food at a restaurant chain would change the
meat-based brand image that a restaurant chain has. As well as the impact that a restaurant
chain's offering vegan food options would have on their customer attitudes.
To do so, HBR's fictionalized case studies present problems faced by leaders in real companies
and offer solutions from experts. The one I have chosen to study is about “Protein Power Plates”
a fast-food restaurant chain launched by Jamie Colvin, an Olympic gold medalist, in 2013. At
first, he wanted to open a steak house, a “Valhalla for carnivores”, but her sister a recent
business school graduate that he employed as his Chief Marketing Officer changed his mind.
She pointed out that her young professional friends were less interested in fancy sit-down
restaurants than in "fast casual" spots pick-your-own meat, vegetables, and carbs, therefore, he
took her advice and shifted gears. Nine years later, Protein Power Plates "Let's meat!" was a $90
million revenue business with 30 locations in 10 cities across the United States.
In 2022, Mila came with an idea: Implementing a vegan option on the menu by partnering with
V-burger, the leader in the plant-based-meat category. Jamie thought that commercially
processed fake foods must be avoided. Since the company's launch they focused on real, tasty
meat from humanely raised animals, grass-fed beef, natural, organic, and locally sourced
ingredients. For Jamie, his brand is “meat. Real meat.” so he wasn’t confident in changing his
brand image.
They met V-Burger to test the product and meet the Head Chef to learn the following:
- Red-meat consumption has declined substantially since 1971,4 while the number of
people who say they are interested in vegetarian or vegan options is climbing.
- Livestock accounts for 14.5% to 18% of human-induced greenhouse gas
emissions.
- Nearly 3% of people in the U.S. (and 23% of Millennials) follow a plant-based diet, and
their ranks have tripled over the past 15 years, according to Ipsos Retail Performance.
- From 1971 to 2019 Americans reduced their annual red-meat intake to about
105.2 pounds per person from a high of 136.1 pounds per person.
- Google searches for "vegan food near me" increased by more than 5,000% in 2021,
according to Alphabet.
- Nielsen's 2015 Global Corporate Sustainability Report indicated that 66% of
consumers were willing to spend more on a product from a sustainable brand. The
percentage increased to 73% for Millennials.
- One 3.5-ounce beef burger contains 22% of your daily saturated-fat allowance and
27% of your daily cholesterol.
- One plant-based burger I know of contains 25% of the daily saturated-fat
allowance.
Overall, it could be a low-risk way to stay on trend and maybe win new customers. Protein
Power Plates will give it a try, they will add one menu item in partnership with V- Burger for
one month. Jamie wished the V-Burger test had been either a total failure or a home run, but he
wasn’t expecting those result. Indeed, results from the experiment were decidedly mixed. For
every 50 beef burgers sold, only one special-recipe V- Burgers was. The new item didn't seem to
have attracted many new customers. Those who had bought it gave it mostly positive reviews,
but some were unimpressed. And a few tweeted complaints that Protein Power Plates had
become too "woke." Now, it was time to decide whether or not Protein Power Plates should sign
a year-long contract of
$500,000 worth of V-Burger.
For Lynn Blashford, White Castle’s CMO, the answer is YES, they should sign for the
following reasons:
- A $500,000 investment for a year over 30 restaurants is relatively low risk.
- The name is Protein Power Plates, not Meat Power Plates.
- The % of plant-based products consumers is growing by double digits annually.
- This food category will keep rising.
- The ratio 50 to 1 will improve.
- The slogan "Let's meat!" will have to change.
- Although, it needs to be delicious.
- Protein Power Plates will be in a position to be a early adopter such as White Castle
which benefited from positive media coverage for free as an innovator.
On the other hand, for Scott Uehlein, the head of culinary innovation at Sonic Dirve-In, the
answer is NO, they shouldn’t sign for the for the following reasons:
- Jamie might need to fire his CFO for letting him even consider it on the terms being
offered.
- $500,000 commitment = 6% of its annual food costs.
- Each restaurant would have to sell $150 worth of V-Burgers every day.
- They need to extend the 30-day trial.
- Maybe existing customers are happy with the current offerings.
- What percentage of focused marketing to improve sales?
- Double down on quality meat or diversify in other ways.
-
Limitations of the case study:
- Focus on fast-food restaurants chains.
- Focus on vegan diet only, not vegetarian.
- There is no poll about trust.
- Need advice to how to deal with “Protein Power Plates are too woke” comments.
- Need advice about marketing on how to promote the V-Burger.