The news: The impact of the cyclospora outbreak is extending beyond Taco Bell as authorities continue investigating the source.
The data: While Taco Bell remains the chain most affected so far, other fast-casual brands are drawing fewer diners. Traffic to Chopt has plunged since July 13, while Cava, Panera, and Chipotle are experiencing smaller—but still painful—declines in visits, according to Placer.ai.
Implications for the restaurant industry: The cyclospora outbreak is making an already difficult environment for restaurants tougher. A separate Placer.ai report found that dining traffic has trailed last year’s levels for most of the year to date, owing mainly to the category’s weakening appeal to value-conscious consumers and rising demand for eating at home.
The problem confronting restaurants is that until a clear source is identified, consumers will likely continue pulling back on dining out to try to avoid contact with contaminated food. For that reason, companies need to be transparent and proactive with their messaging to reassure customers that they are taking steps to protect food safety. Those that stay silent risk losing trust—and with it, traffic—to competitors that communicate more effectively.
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