If you walked through Los Angeles or New York a few years ago, you couldn't throw a stone without hitting a shop selling $16 buffalo cauliflower wings. The hype was electric. Investors were throwing cash at anything that looked like a plant-based burger. But lately, the headlines feel more like an obituary section.
It’s been a rough ride. Honestly, seeing some of these names go under is a bit of a shock if you remember how untouchable they seemed in 2019.
We aren't just talking about a few mom-and-pop shops failing—which is common in the brutal world of hospitality. We are seeing a fundamental shift in vegan restaurant chain closures that has left regular diners and Wall Street analysts scratching their heads. Is the "vegan revolution" over? Or did these businesses just fly too close to the sun?
✨ Don't miss: Refresher Truck Driver Training: What Actually Happens When You’ve Been Out of the Seat
The Names We Lost (and the Ones Hanging On)
Let's look at the actual wreckage. It’s not pretty.
Veggie Grill, once the undisputed king of the mountain with over 30 locations, had to "right-size" its portfolio significantly. They shuttered about 40% of their units—12 locations gone in one swoop, including their secondary brand Stand-Up Burgers. Eventually, the company was acquired by Next Level Burger in early 2024. Now, they are in the middle of a massive rebranding phase, turning those old spots into "Next Level Veggie Grills." Basically, the brand as we knew it is being swallowed to survive.
Then there’s the By Chloe saga. What a mess. After a nasty legal battle with founder Chloe Coscarelli and a bankruptcy filing, the remains of the chain were rebranded to Beatnic. Even with new backing, they’ve had to pull back, closing locations in once-prime spots.
Even the celebrities couldn't save the day. Hart House, the fast-food concept backed by Kevin Hart, abruptly shut all its Los Angeles locations in late 2024. It was barely two years old. When a guy with 170 million Instagram followers can't make a vegan burger joint stick, you know the math isn't mathing.
📖 Related: 25000 pounds in american money: What You Actually Get After Fees and Taxes
Why the Math Isn't Mathing
Why are these places folding? It’s not because people suddenly hate vegetables. It’s way more boring than that. It’s the economics.
Running a vegan restaurant is, frankly, a logistical nightmare compared to a standard burger joint.
- The Ingredient Premium: Non-dairy cheeses and high-end meat substitutes are expensive. Even as some items hit "price parity" in grocery stores, the wholesale costs for restaurants haven't dropped enough to offset inflation.
- Labor Intensity: If a restaurant chooses not to use processed "fake meats," they have to make everything from scratch. Scratch-made beet burgers and cashew crema require hours of prep. More prep means higher labor costs.
- The "Niche" Trap: If you serve meat, 100% of the population is a potential customer. If you are 100% vegan, you are fighting for a tiny slice of the pie. While many "flexitarians" eat plant-based, they are fickle. If a vegan burger costs $4 more than a beef burger during a recession, they’re picking the beef.
Planta, a high-end favorite, recently faced its own bankruptcy scare. They had nearly $50 million in sales but were drowning in liabilities—upwards of $10 million. They grew too fast. They opened 18 locations in under a decade. In this economy, that kind of rapid expansion is basically a suicide mission.
The Identity Crisis: To Serve Meat or Not?
One of the weirdest trends we've seen lately is the "pivot."
Take Sage Plant Based Bistro in LA. They were a staple for over a decade. In 2024, they rebranded to Sage Regenerative Kitchen and—wait for it—started serving beef and dairy. The owner, Mollie Englehart, said she did it to stay afloat.
It didn't work.
The vegan community felt betrayed, and the meat-eaters didn't suddenly flock to a place known for kale salads. By early 2025, they were closed for good. This highlights a massive problem for these chains: once you lose your core identity, you often lose your reason to exist.
Real Data vs. The "Death of Veganism" Narrative
Don't let the doom-scrolling fool you. The industry isn't dead; it's just maturing.
According to data from the Vegan Society, consumer interest in 2026 is actually shifting toward whole foods and "cleaner" proteins rather than ultra-processed fake meats. This is where many of the shuttered chains failed. They leaned too hard on the "tech-meat" craze of 2020.
Now, diners want mushrooms. They want lentils. They want things that look like plants.
Slutty Vegan, founded by Pinky Cole, is one of the few still expanding. Why? Because they sell an experience and a culture, not just a diet. They’ve managed to bridge the gap between "niche" and "mainstream" without losing their soul.
What Happens Next?
If you’re a fan of plant-based dining, the landscape is going to look different. The era of the "massive national vegan chain" might be over for a while.
Expect to see:
- Smaller Footprints: Chains like Next Level Burger are focusing on high-efficiency, smaller locations rather than massive flagship restaurants.
- Menu Hybridization: More "regular" restaurants are adding robust vegan sections, making dedicated vegan chains feel less necessary.
- Whole-Food Focus: Less Beyond/Impossible, more fermented proteins and fungi-based dishes.
Actionable Steps for the Plant-Based Curious:
If you want to see your favorite spots survive, the reality is simple: vote with your wallet. Don't just save vegan dining for "Meatless Monday." If these businesses don't see consistent foot traffic from the "flexitarian" crowd, they can't pay the rent. Also, look for spots that are diversifying into "grab-and-go" models or wholesale products, as these are proving to be more resilient than traditional sit-down models.
The bubble has definitely popped, but what’s left behind is a leaner, hopefully more sustainable industry that values quality over hype. It sucks to see the "For Lease" signs, but maybe a "right-sizing" is exactly what the movement needed to actually last.
Key Industry References:
- Next Level Burger / Veggie Grill Merger Report (2024-2025)
- Planta Bankruptcy Filings and Debt Analysis (2025)
- The Vegan Society: 2026 Consumer Trend Forecast
- Green Queen Media: Price Parity Study (October 2025)