A Cyclospora outbreak in the U.S. has led to a decline in salad sales and restaurant patronage
A Cyclospora outbreak in the U.S. has caused some consumers to avoid salads and greens, which has impacted foot traffic at restaurant chains and sales of prepared foods in stores. According to CNBC, following the U.S. Food and Drug Administration’s (FDA) announcement of the outbreak on July 18, foot traffic at Chopt Creative Salad Co. locations fell by 24% compared to the average for that day of the week.
The Sweetgreen chain stated that customer concerns over Cyclospora reduced its same-store sales in July by approximately 6 percentage points. The company also lowered its full-year forecast. The Salad and Go chain filed for Chapter 11 bankruptcy and closed all of its locations, noting that the outbreak exacerbated its existing business challenges.
Sales of pre-packaged salads, in dollar terms, fell 14% year-over-year in the four weeks ending July 25, according to NielsenIQ data. Chipotle Mexican Grill was also affected: the company’s CFO, Adam Reimer, reported that sales weakened by approximately 200 basis points in the second half of July amid the Cyclospora outbreak.
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The FDA believes the likely source of the outbreak is iceberg lettuce processed at a Taylor Farms facility in central Mexico. The company voluntarily recalled products shipped from that facility. According to the FDA, at least 10,000 people have fallen ill due to the outbreak. Taco Bell is the only nationwide restaurant chain linked to the multi-state outbreak; iceberg lettuce is frequently used on its menu.
Cyclospora is a parasite transmitted through water and can spread via contaminated fruits and vegetables, including lettuce, green onions, raspberries, and fresh herbs. The FDA is also tracking at least six smaller active outbreaks whose source has not yet been identified. The agency recommended peeling and discarding the outer layers of fruits and vegetables to reduce the risk.
The Michigan Department of Health announced that, due to a decline in the number of new infections, state residents can once again safely consume lettuce and leafy greens. The state has recorded more than 12,400 cases and two deaths linked to the outbreak.
