If you have been following the food industry lately, you probably have seen headlines about Planta, the trendy, upscale vegan restaurant chain, filing for Chapter 11 bankruptcy protection in Delaware. This might have shocked some, especially if you have ever dined at one of their beautifully designed locations or scrolled past their Instagram-worthy dishes.
But honestly, for many in the industry, it was not a surprise. The restaurant world has always been cutthroat, and in the post-pandemic era, it is even harder to survive—especially when you are catering to a very specific, niche audience.
The brand, launched in 2016 by CEO Steven Salm and Executive Chef David Lee, had a mission: make plant-based dining mainstream. Their tagline said it all—”an unguilty pleasure.” The problem? Most people still want their burgers, steaks, and cheesy pizza.
Is the vegan restaurant market too small to survive?
This is the big question that many entrepreneurs in the food space are now rethinking. The truth is, only about 1% of Americans follow a vegan diet. According to a Harris Poll, just 3% are full-time vegetarians, and around 5% consistently choose plant-based meals when dining out.
So while veganism is a growing trend in theory, it is still a tiny slice of the population. And most people who do not live that lifestyle are not looking to pay premium prices for meat-free alternatives, especially if they are just “trying something new.”
Planta made the mistake a lot of vegan startups make—they assumed the interest in healthy eating would translate into actual dollars and regular foot traffic. But as you know, occasional curiosity does not build long-term customer loyalty.
Why healthy food chains often struggle to scale
Scaling any restaurant concept is hard, but scaling a niche idea like a high-end vegan brand? That is even tougher. Planta tried to expand too quickly without securing a large enough customer base.
Sure, people want healthy food—but they also want affordability, convenience, and variety. Plant-based menus often involve unique ingredients, custom recipes, and expensive sourcing. Combine that with high labor and rent costs in premium locations, and you are looking at an expensive operation that needs a lot of daily traffic to stay alive.
Chains like Dunkin’ and others have experimented with gluten-free and vegan menu items before, but most of those products disappear quietly. Why? Because the mass market just is not asking for them loudly enough. That is the reality.
What went wrong with Planta’s business model?
The biggest issue was simple: not enough repeat customers. People might try a vegan place once for the novelty, but getting them to come back again and again is a whole different story—especially when they can get something cheaper and more filling somewhere else.
Even though Planta branded itself as luxurious, eco-conscious, and trendy, that is not enough when people are watching their wallets. And for meat-eaters, vegan food can still feel like a compromise. The chain bet on changing that mindset quickly—and that bet did not pay off.
They also faced the same issues most restaurants do right now: inflation, rising food costs, and post-COVID dining fatigue. Combine that with a niche menu, and it is a recipe for financial trouble.
Could vegan restaurants succeed in the future?
The short answer is: maybe, but not like this. To thrive, vegan restaurants have to appeal to a broader audience, not just strict vegans. Offering dishes that are plant-based but still familiar, flavorful, and satisfying for meat-eaters is key.
Restaurants that focus on flexible dining—where you can find something for every type of eater—stand a much better chance than those that limit themselves to just one food philosophy.
Planta had vision, creativity, and ambition. But when it came to the business side, they were always facing an uphill climb.
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