Warm weather typically boosts salad sales, but recent cyclospora outbreaks have caused consumers to shy away from lettuce. Following the FDA's announcement of the outbreak, Chopt Creative Salad Co. experienced a 24% drop in traffic on July 18, while Sweetgreen reported a 6 percentage point decline in same-store sales for July and subsequently lowered its full-year outlook.
The outbreak, linked to iceberg lettuce from Taylor Farms' facility in Mexico, has affected grocery sales as well, with prepackaged salad sales falling 14% year-over-year. Salad and Go filed for Chapter 11 bankruptcy, citing the outbreak as a factor exacerbating its existing challenges. Taco Bell, which uses iceberg lettuce, saw initial sales declines but reported recovery later in July.
Chipotle also noted a softening in sales due to the outbreak, as it uses romaine lettuce and fresh cilantro. In response, chains like Sweetgreen and Just Salad have emphasized their food safety measures to reassure customers. Despite the outbreak, some consumers, like a Sweetgreen customer in Manhattan, have not altered their dining habits.
However, the Michigan Health Department has recently lifted its broad recommendation to avoid bagged salad mixes, indicating a potential easing of consumer fears. This situation underscores the significant impact that health scares can have on the food service industry and consumer behavior