RESOLVING THE LEDGER
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See the full story · 1 sourcesWarm weather usually drives salad sales, but consumers spooked by the ongoing cyclospora outbreaks are avoiding lettuce this summer.
Traffic to Chopt Creative Salad Co. locations fell 24% compared to the day-of-week average on July 18, right after the Food and Drug Administration announced the outbreak, according to Placer.ai data. Sweetgreen on Thursday said consumer concerns about the outbreak had about a 6 percentage point impact on same-store sales in July, and the company cut its full-year outlook . And earlier this week, upstart chain Salad and Go filed for Chapter 11 bankruptcy and closed all of its locations, saying the cyclospora outbreak had exacerbated its existing business challenges.
Grocery stores aren't immune either. Dollar sales of prepackaged salads plunged 14% during the four weeks ended July 25 compared with the year-ago period, according to NielsenIQ data.
The FDA has pointed to iceberg lettuce processed in Taylor Farms' central Mexico facility as the likely culprit for the outbreak that has sickened at least 10,000 people. Taylor Farms has voluntarily recalled products supplied from that facility.
Yum Brands' Taco Bell is the only national restaurant chain that has been linked to the multistate outbreak. It uses iceberg lettuce frequently across its menu, from its Crunchwrap Supreme to its Cheesy Gordita Crunches, but the chain isn't known for its salads. Taco Bell's sales and traffic to its restaurants initially tumbled after the FDA announcement, but Yum executives said in late July that business was already recovering.
But the FDA is also tracking at least six other active outbreaks without a clear culprit; those outbreaks have significantly smaller number of reported cases. The long incubation period for cyclosporiasis makes it difficult to identify the contaminated ingredients.
Cyclospora is a water-borne parasite. It typically spreads through contaminated produce, like lettuce, green onions, raspberries and fresh herbs. Although public health authorities seem to have pinpointed the source of the current outbreak, the FDA is advising consumers to take extra steps, like discarding outer layers of fruits and vegetables, to reduce risk of exposure.
But many diners have gone further and chosen to avoid salads and greens altogether during the outbreak.
Even Chipotle Mexican Grill has seen its sales dip. The burrito chain offers romaine lettuce as a topping and uses fresh cilantro across much of its menu, including its guacamole and salsas.
"In the second half of July, we did see a softening, call it about 200 basis points or so, right around the issue that's affecting the industry around cyclospora," Chipotle CFO Adam Rymer said on the company's earnings call in late July.
Chipotle has separately been in the news for recalling jalapeno peppers that were potentially contaminated with salmonella as part of a broader outbreak that has sickened at least 300 people.
Sweetgreen and other restaurant chains swept up in the panic have had to implement strategies to reassure their customers.
For example, Sweetgreen has chosen to emphasize that iceberg lettuce isn't even on its menu. On the chain's 19th birthday, CEO Jonathan Neman posted on X that its restaurants have never served iceberg lettuce and only source lettuce grown in the U.S.
Likewise, Just Salad founder and CEO Nick Kenner posted on LinkedIn detailing the chain's food safety measures, like peeling and discarding the outer leaves of romaine and kale and double washing the leaves.
And Chopt posted on its Instagram about food safety.
"Food safety has always been at the heart of how we operate. ... We promise to continue monitoring guidance from public health officials and remain committed to earning your trust every time you choose Chopt," the company wrote.
Cava , another fast-casual chain known for its bowls and salads, has yet to report its earnings and any impact from the cyclospora scare. It is expected to share its quarterly results after the bell on Tuesday.
But in a promising sign for many restaurant chains — and diners — the danger may be passing.
The Michigan Health Department on Thursday said residents can eat lettuce and salad greens again as new infections slowed.
"The broad, precautionary recommendation to avoid bagged salad mixes during the Cyclospora outbreak is no longer in effect," the agency said in a statement. "Residents may resume their usual food handling practices and make choices based on their individual risk tolerance."
The state appears to be hardest hit by the outbreak, with two deaths and more than 12,400 cases reported in Michigan alone.
Of course, not all consumers have lost their appetite for greens. A Sweetgreen location in downtown Manhattan was bustling with diners and delivery drivers around noon on Friday.
Sherine Naveed, a 35-year-old laser technician who lives on Long Island, picked up her usual Sweetgreen salad order. Despite hearing about the outbreak, she hasn't changed her dining habits and is also still buying prepackaged salads at the grocery store.
"I have two kids," she said. "They're already pretty germ-y."
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