Cyclospora outbreak depresses salad sales at fast-casual chains
The FDA-linked Cyclospora outbreak has led to a sharp decline in traffic and sales for salad-focused restaurants and pre-packaged greens, prompting some chains to adjust menus and reassure customers.
Traffic to fast-casual salad chains fell sharply after the Food and Drug Administration identified an outbreak of Cyclospora linked to iceberg lettuce processed at a Taylor Farms facility in central Mexico. Data from location-analytics firm Placer.ai showed a 24% drop in visits to Chopt Creative Salad Co. on July 18, the day the FDA announced the outbreak. Sweetgreen reported a roughly six-percentage-point dip in same-store sales for July and cut its full-year outlook, while Salad and Go filed for Chapter 11 bankruptcy, citing the outbreak as an aggravating factor.
Grocery-store sales of pre-packaged salads also declined, with dollar sales down 14% for the four weeks ending July 25 compared with the same period a year earlier, according to NielsenIQ. The FDA has recalled products from the implicated Taylor Farms facility and continues to monitor at least six other active Cyclospora outbreaks with fewer reported cases.
Restaurant chains have taken steps to address consumer concerns. Sweetgreen emphasized that it does not use iceberg lettuce and sources lettuce grown in the United States. Just Salad’s CEO detailed food-safety practices such as peeling outer romaine leaves and double-washing greens. Chopt posted a statement that food safety remains central to its operations and pledged ongoing monitoring of public-health guidance.
Chipotle’s CFO noted a 200-basis-point softening in sales in the second half of July, attributing the dip to the broader industry impact of Cyclospora. Taco Bell, the only national chain directly linked to the multistate outbreak, saw an initial decline in traffic but said its business was already recovering by late July.
The Michigan Health Department announced that the precautionary recommendation to avoid bagged salad mixes is no longer in effect, allowing residents to resume normal handling of lettuce and greens. The state had reported more than 12,400 cases and two deaths, the highest concentration of infections.
Despite the overall slowdown, some consumers continue to purchase salads. One Sweetgreen customer in Long Island said she has not changed her dining habits and still buys pre-packaged salads for her family.