Warm weather typically boosts demand for greens, but the cyclospora outbreak is discouraging many consumers from ordering salads this summer.
Foot traffic to Chopt Creative Salad Co. dropped 24% on July 18, the day after federal regulators announced the outbreak, according to Placer.ai data. Sweetgreen said concerns tied to the cyclospora outbreak reduced July same-store sales by roughly 6 percentage points and the company cut its full-year outlook. Earlier this week, Salad and Go filed for Chapter 11 bankruptcy and shuttered all locations, saying the outbreak compounded existing business pressures.
Grocery sales were also hit. Dollar sales of prepackaged salads fell 14% in the four weeks ended July 25 from a year earlier, NielsenIQ reported.
Federal officials have identified iceberg lettuce processed at Taylor Farms’ central Mexico facility as the likely source of the outbreak, which has sickened at least 10,000 people. Taylor Farms voluntarily recalled products supplied from that plant.
Taco Bell, part of Yum Brands, is the only national chain linked to the multistate outbreak. The fast-food brand, which uses iceberg lettuce widely across its menu, saw sales and traffic initially fall after the federal announcement. Yum executives said in late July that business was already recovering.
Officials are also tracking at least six other active outbreaks without a confirmed source, each with far fewer reported cases. The lengthy incubation period for cyclosporiasis has complicated efforts to pinpoint contaminated ingredients.
Cyclospora is a water-borne parasite that typically spreads through contaminated produce such as lettuce, green onions, raspberries, and fresh herbs. While authorities believe they have located the source of the current cyclospora outbreak, regulators advise consumers to take added precautions, including discarding outer leaves of fruits and vegetables, to reduce exposure risk.
Damage control during the cyclospora outbreak
Restaurants caught in the fallout have moved to reassure guests.
Sweetgreen has emphasized that iceberg lettuce is not on its menu. On the chain’s 19th anniversary, CEO Jonathan Neman said on X that Sweetgreen has never served iceberg lettuce and sources its lettuce solely from U.S. growers.
Just Salad founder and CEO Nick Kenner outlined the brand’s food safety steps on LinkedIn, including peeling and discarding outer leaves of romaine and kale and double washing greens. Chopt posted on Instagram that food safety is central to its operations, adding that it would continue to follow guidance from public health officials.
Cava, another fast-casual chain known for bowls and salads, has yet to report results and any potential impact from the scare. The company is expected to release quarterly earnings after the bell on Tuesday.
There are signs conditions may be improving. The Michigan Department of Health and Human Services on Thursday said residents can resume eating lettuce and salad greens as new infections have slowed. The agency said its broad recommendation to avoid bagged salad mixes is no longer in effect and that consumers may return to usual food handling practices based on individual risk tolerance.
Michigan appears to be the hardest-hit state, with two deaths and more than 12,400 cases reported.
Some diners have continued their routines. A Sweetgreen in downtown Manhattan was busy around noon on Friday with customers and delivery drivers. Sherine Naveed, a 35-year-old laser technician from Long Island, picked up her usual order and said she is still buying prepackaged salads at grocery stores despite the headlines. “I have two kids,” she said. “They’re already pretty germ-y.”
Ripple effects for other chains
Even brands not directly linked to the cyclospora outbreak have felt a sales pinch. Chipotle Mexican Grill, which offers romaine lettuce and uses fresh cilantro across its menu, saw a late-July softening of about 200 basis points, CFO Adam Rymer said on the company’s earnings call.
Separately, Chipotle has recalled jalapeno peppers that may have been contaminated with salmonella, part of a broader outbreak that has sickened at least 300 people.
Yum executives said in late July that business was already recovering, and investors are watching how food-safety headlines affect consumer-facing companies alongside broader market stories such as Disney Q3 2026 earnings in focus as investors eye streaming, parks.
Federal regulators continue to monitor the situation, and updated guidance can be found through agencies such as the Food and Drug Administration and the Centers for Disease Control and Prevention.