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McKinsey Hard Impact of Trend Strategy Product Launch

Plant-based meat

#Fast food chain #Fast Food #Food & Beverage #Consumer Goods
ProHub Comment

This is a sophisticated 'Impact of Trend' case requiring candidates to assess strategic implications across four dimensions: customers, competitive landscape, menu offerings, and marketing. The case tests analytical rigor in evaluating operational complexity, financial drivers, and market positioning when entering an emerging category where competitors have mixed results.

Estimated Time 15 minutes
Difficulty Hard
Source PeterK
50 / 100
The CEO of a $1B regional fast-food chain Up-N-Down Burger (UDB) has asked your team to help her prepare for the annual strategy meeting with the executives. Specifically, she is concerned about the rapidly growing popularity of plant-based meat and the implications of this major innovation for UDB over the next 5 years. The chain hasn’t baked this new trend in its strategy yet, but a lot of other fast-food players have already started adjusting to this new reality. How should UDB think about the quickly expanding segment of “meatless” meat?

Clarifying Information

  1. UDB’s chain has 400 locations in five states with a major focus on California
  2. UDB doesn’t offer “Impossible” burger or any other plant-based meat offerings
  3. In the U.S. eight fast-food chains offer vegan burgers, incl. giant Burger King with Impossible Whopper
  4. After a trial run in 2021-22, McDonald’s discontinued its vegan burger (McPlant) due to low sales (especially in rural areas) with no plans to re-introduce it
  5. While only 8% of the U.S. population consider themselves vegetarians or vegans, more than 40% describe themselves as flexitarians (semi-vegetarians who follow a primarily vegetarian diet but occasionally eat meat or fish)