Plant-Based Chicken Is Here, Courtesy Of KFC And Beyond Meat

While some chicken chains have been busy arguing on Twitter about who has the best sandwich, KFC has been working behind the scenes to meet the staggering plant-based protein demand. 

KFC announced today it will debut its plant-based chicken–Beyond Fried Chicken–Aug. 27 at a single Atlanta restaurant. The product, developed in partnership with Beyond Meat, will be available as nuggets and boneless wings.  

With this test, KFC becomes the first quick-service restaurant to jump into the plant-based space on the chicken side, after a year of tremendous growth in the plant-based beef category. Less than three months ago, KFC U.S. President Kevin Hochman told CNBC the chain was “exploring” such an alternative but there were no plans in place for a test. Those plans have quickly changed, and for good reason. 

In July, the Plant Based Foods Association reported that U.S. retail sales of plant-based foods have grown 11% in the past year (compared to 2% for the total retail food market), bringing the category’s market value to $4.5 billion. Plant-based food sales have jumped by 31% in the past two years. 

A confluence of factors is pushing these numbers. Consumers are more conscious about the effects mass meat production has on the environment. Others are simply trying to eat healthier, while others are interested in animal welfare. Of course, it helps that there are more alternatives now, perhaps empowering the two-thirds of Americans who say they are eating less meat. 

All of this is exactly why KFC wanted to strike while the iron was hot.

“We move fast when we know there’s excitement there. Obviously, this is a huge and growing trend,” Hochman said during a phone interview last week. “A big part of how we want to evolve is by taking trends that are hard to come by, either because they’re not distributed everywhere or because they’re very expensive, and democratizing them for everyone. For us to be on the forefront of this trend, we’re very proud of that. It’s meaningful. Everybody deserves an opportunity to try a plant-based protein.” 

This “democratization” means KFC is approaching its Beyond Fried Chicken with a price point that’s as close as it can get to its core offerings with a product that’s not quite scaled yet. The product is priced at $6.49 for a six-nugget combo meal (with a side and medium drink) and $8.49 for a 12-piece combo meal, or a four-piece a la carte item for $1.99. Boneless wings are $6 for six or $12 for 12. 

KFC has taken this approach before, adding Nashville Hot Chicken to the menu for under six bucks, for example. Comparatively, a hot chicken sandwich at Nashville’s Hattie B’s is about $9.  

“It’s very much in our wheelhouse to take an emerging food trend and make it accessible. Customers that have been enjoying plant-based proteins are typically higher income customers. But this a trend that everybody is interested in and we can make this more accessible to more people. The way to do that is to make it as close to price parity as our conventional, animal-based protein,” Hochman said. 

Although the Beyond Fried Chicken is available at just one restaurant, Hochman anticipates the test will expand. The chain is targeting two consumer sets with this product–people who used to dine at KFC but stopped eating meat, and flexitarians, or those who still eat meat but are adding more alternatives into their diet. 

“Our primary driver is more traffic, to attract some new customers, as well as get more existing customers to come in more often,” Hochman said. “We think this will get people to come in more often.” 

If the chain’s UK market serves as any indication, KFC should also generate quite a bit of buzz that translates to sales. KFC UK launched its vegan chicken in June, and the product sold out in just four days. Sales of the product were initially 500% higher than that of a normal burger at the chain. This success isn’t lost on Hochman, who noted that one of KFC’s advantages is being able to leverage its global system for learnings on menu items. 

Another gauge of how this could go for KFC is by taking a look at the plant-based beef category in QSR. For example, the St. Louis restaurants that initially tested Burger King’s Impossible Whopper in April experienced 18.5% higher traffic that month compared to the national average. 

Further, White Castle locations that tested its Impossible Slider initially saw a 250% jump in sales. And, Del Taco’s Beyond Meat tacos have become one of the best-selling new products in the chain's history. 

Beyond Meat gets the nod

This foray into the chicken category is a big deal, particularly at a national chain with about 4,000 restaurants. In fact, Beyond CEO Ethan Brown calls this launch a “tipping point” for the category.

“This is becoming a movement in a way I think is interesting. The consumer is enveloped in this movement. It’s less about the protein type than it is the forward-looking possibility that we can eat things we’ve always enjoyed, like KFC,” he said. “The consumer is doing something very special here. And, for KFC to take the position that this is something worth doing, that takes real leadership.” 

KFC met with several plant-based protein players to learn the market, but chose Beyond Meat because the company best replicated the taste and quality of KFC chicken, Hochman said. Because of this replication, there aren’t any operational changes back of house, either–a big deal for operators keeping an eye on things like speed of service. 

KFC’s launch gives Beyond Meat a major win in a heated two-player competition with Impossible Foods. With giants like Tyson and Perdue jumping in, as well as British company The Meatless Farm launching in the U.S., this space is about to get even more intense. 

To get an idea of how competitive it’s been so far, consider that White Castle was the first chain to pull the trigger, adding Impossible Sliders to the menu nationwide not quite a year ago. 

Then, the floodgates opened–Burger King, Carl’s Jr., Red Robin, Umami Burger, Hard Rock Cafe, Applebee's, Cheesecake Factory and TGI Friday’s added alternative burgers, Tim Horton’s, Dunkin’ and A&W unveiled plant-based sausage, Qdoba and Del Taco went with the plant-based tacos, Little Caesar’s added an Impossible Supreme pizza and Subway started testing the Beyond Meatball Marinara sub. 

Don’t expect the waters to recede anytime soon. While some chains, like Arby’s, have been adamant about “never” adding such an alternative, they are outliers. Wendy’s, McDonald’s and Chick-fil-A have all acknowledged they’re keeping an eye on the trend, with Wendy’s CEO Todd Penegor declaring that it is here to stay. 

For Beyond specifically, there are a number of important milestones in the company’s 10-year history–its IPO earlier this year, its rollout into grocery stores, its partnerships with giants like Subway, Dunkin’ and Carl’s Jr, etc. This KFC partnership ranks right up there. 

“I grew up with KFC. To see the consumer have the opportunity to come into this iconic brand and be part of the expanded choice set, and to do so with a plant-based meat, is nothing short of spectacular," Brown said. "For me as a consumer, this is a really important moment and it points to a brighter future.”