: Chipotle launches its own plant-based chorizo for a limited time

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Chipotle Mexican Grill Inc. said Monday that it has launched a limited-time plant-based chorizo option in the U.S.

The item is featured in three new Lifestyle Bowls, which are available on the app and the the company’s website: the Whole 30 Salad Bowl, and both a vegan and vegetarian bowl. Lifestyle Bowl orders will get free delivery for the month of January.

Chipotle’s plant-based chorizo is made with chipotle peppers, tomato paste, garlic and fresh peas. The item, which Chipotle notes is made from ingredients that are “grown on a farm, not in a lab,” is vegan and has 16 grams of protein.

The fast-casual chain is taking a different plant-based path from other restaurant companies that have typically turned to brands like Impossible Foods or Beyond Meat
BYND,
-1.90%

for menu items.

Fast-food giant McDonalds Corp.
MCD,
-0.26%
,
for instance, has partnered with Beyond Meat on the McPlant sandwich. Yum Brands Inc.
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-2.07%
,
parent to Taco Bell, KFC and Pizza Hut, has also said it will work with Beyond Meat on plant-based foods.

See: McDonald’s was the only positive in a quarter full of negatives at Beyond Meat, analysts say

As more consumers add plant-based, vegetarian and vegan meals to their diets, chain restaurants have offered items to meet the demand.

Customers are also increasingly taking environmental concerns into account when they make purchases. Food items that promise to lower carbon emissions, take animal welfare into account and have other ESG (environmental, social and governance) advantages are growing in favor.

Plant-based food companies have equally benefited from the exposure that comes with getting space on a national or global chain’s menu board.

“Most leading QSR [quick-service restaurant] players have been vocal that PBMA [plant-based meat alternatives] can drive top-line growth by expanding options to more consumers and attracting more diverse parties,” wrote Rabobank in a December 2021 report.

“Partnering with major restaurant chains is consistent with PBMA players’ high-growth strategy, as they benefit from recurrent revenue, brand promotion, experimentation opportunity, and use of the partner’s distribution network. It represents, on paper, a more stable environment than the retail channel, where PBMA products face fierce competition, discounts, and costs associated with sales that pressure margins and oscillate volumes.”

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The report notes that plant-based “launches often attract media and consumer attention — a potentially short-lived phenomenon as the initial hype eventually fades.” The report notes that there has been pullback at some chains, like the disappearance of the Beyond Sausage breakfast sandwich at some Dunkin’ locations.

But the value to fast-food chains, which are competing for new customers who are looking for these sorts of alternatives, is still to be determined.

“[T]he single fact of keeping some sort of PBMA items on the menu brings reputational gains for QSR in terms of inclusion and ESG compliance. This finding frees up QSR players to test different products and strategies to different audiences, and this is what we may be witnessing right now,” Rabobank says.

Chipotle stock has gained 21.6% over the past year while the S&P 500 index
SPX,
+0.40%

 is up 27.2% for the period.

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