Key Takeaways
- Salad sales have dropped as cyclospora outbreaks raise health concerns.
- Traffic to salad chains like Chopt and Sweetgreen has significantly decreased.
- Prepackaged salad sales in grocery stores have also fallen sharply.
- The FDA has identified a potential source linked to the outbreak.
Decline in Salad Sales
The ongoing cyclospora outbreaks in the U.S. have led to a noticeable decline in consumer interest in salads. Data from NielsenIQ indicates that sales of prepackaged salads dropped by 14% in the four weeks ending July 25 compared to the same period last year. Salad chains are feeling the impact as well, with Chopt Creative Salad Co. reporting a 24% decrease in customer traffic following the FDA’s announcement regarding the outbreak.
Sweetgreen also noted a 6 percentage point decline in same-store sales for July, prompting the company to revise its full-year outlook. The situation has been dire for some, as Salad and Go recently filed for Chapter 11 bankruptcy, citing the cyclospora outbreak as a factor worsening its existing challenges.
FDA’s Findings
The FDA has identified iceberg lettuce processed at Taylor Farms’ facility in central Mexico as a likely source of the outbreak, which has affected at least 10,000 individuals. Taylor Farms has voluntarily recalled products linked to this facility. Taco Bell, a national chain known for its use of iceberg lettuce, was also connected to the outbreak but has since seen a recovery in sales after an initial drop.
Despite the FDA’s identification of a source, the agency is monitoring at least six other outbreaks with fewer reported cases, complicating efforts to pinpoint all contaminated ingredients. Cyclospora, a waterborne parasite, typically spreads through contaminated produce, including lettuce and herbs. The FDA advises consumers to take precautions, such as discarding outer layers of fruits and vegetables.
Consumer Reactions
Many diners are opting to avoid salads altogether during this outbreak. Chipotle Mexican Grill has also reported a dip in sales, likely due to concerns over its use of romaine lettuce and fresh cilantro. The company’s CFO noted a softening in sales linked to the cyclospora issue.
Restaurateurs Respond
In response to consumer fears, restaurants like Sweetgreen are emphasizing their safety measures. Sweetgreen’s CEO highlighted that the chain has never served iceberg lettuce and only sources lettuce grown in the U.S. Other chains, such as Just Salad and Chopt, have also communicated their food safety practices to reassure customers.
Cava, another popular fast-casual chain, has yet to report any significant impacts from the outbreak but is expected to release its quarterly results soon.
Signs of Recovery
In a positive development, the Michigan Health Department announced that residents can resume eating lettuce and salad greens as new infections have slowed. The agency stated that the previous recommendation to avoid bagged salad mixes is no longer in effect, allowing consumers to return to their usual food handling practices.
Despite the outbreak, some consumers remain unfazed. A Sweetgreen location in Manhattan was busy with diners, including Sherine Naveed, who continues to order her usual salad and buy prepackaged salads for her children, showing that not all have lost their appetite for greens.
