Restaurants are facing a dual challenge of escalating lettuce prices and a widespread cyclospora outbreak that has sickened thousands of Americans. The issues have created a difficult operating environment, particularly for establishments that feature lettuce prominently on their menus.
Taco Bell has experienced a notable impact from the outbreak, which federal health officials initially linked to shredded iceberg lettuce served in several states. The fast-food chain voluntarily removed shredded iceberg lettuce supplied by Taylor Farms from its U.S. restaurants on July 17. However, customer visits saw a 21% decrease nationwide as of July 23, according to market research firm Placer.ai.
Food safety researcher Craig Hedberg of the University of Minnesota noted that the outbreak's source appears to be more complex than initially believed, with cases continuing to rise. As the U.S. Food and Drug Administration's investigation continues, a clearer picture of the outbreak's scope is expected.
Beyond Taco Bell, other salad-focused chains have also reported decreased customer traffic. Foot traffic at Chopt was down 12% as of July 23, and M Science reported a 10 percentage point drop in weekly spending at Sweetgreen during the first half of July compared to the previous year. Sweetgreen stated that its food has not been linked to the outbreak and that the company adheres to rigorous food safety standards.
This situation compounds an already tough year for the lettuce market. Retail prices for iceberg lettuce increased by nearly 20% between January and June, with consumers paying an average of 33% more for all fresh lettuce in the month prior to July compared to a year earlier, according to U.S. Department of Agriculture data. Specific price increases were noted for iceberg, red leaf lettuce, and romaine.
Unusually hot weather in Arizona early in the year contributed to crop maturity issues and supply gaps, which were only partially filled when California production began in late April, according to agricultural economist Elizabeth Canales of Mississippi State University. Additionally, increased fuel costs, influenced by geopolitical events in the Persian Gulf, have impacted the transportation of perishable goods like lettuce, which requires continuous cooling.
Lettuce has been associated with previous foodborne illness outbreaks, including E. coli incidents linked to romaine lettuce in 2018.