On the list of phrases that make people wary, “explosive diarrhea” rates pretty high.
Even though the chain stopped serving lettuce, Taco Bell saw a massive decline in foot traffic back in July when the cyclospora story first broke.
Restaurant chains that saw significant foot traffic declines following the cyclospora outbreak in recent weeks are still seeing fewer customers, but the worst may be behind them. This most recent data update comprises foot traffic numbers between Saturday, July 18, and Thursday, July 23, according to an email sent to TheStreet by Placer.ai.
Here are the foot traffic numbers on Thursday, July 23 (compared to the day-of-week average between Jan. 1 and July 6, 2026) for some of the most deeply affected dining chains:
- Taco Bell: -20.8%
- Chopt: -12.2%
- Chipotle: -1.4%
- Panera Bread: -3.1%
That’s a big drop, but while Taco Bell got most of the headline, the fallout from the contaminated lettuce sold by Taylor Farms in July was far-reaching. It impacted grocery chains such as Kroger and Publix, and that impact has lingered even after Taco Bell has recovered.
A quick look at the cyclospora problem
“On July 17, 2026, Taylor Farms de Mexico announced that they are voluntarily removing all iceberg lettuce sourced from central Mexico from the U.S. market. On July 17, Taylor Farms initiated a recall, which includes Marketside-brand products available at Walmart described as ‘Iceberg Salad 12-oz or 24-oz’ and ‘Shredded Lettuce 8-oz or 16-oz,’ the FDA reported.
- U.S. health officials have declared a record-setting outbreak linked to contaminated iceberg lettuce, after 12,883 illnesses across 21 states, 570 hospitalizations, and two deaths.
- The lettuce, sourced from central Mexico by Taylor Farms, was recalled in July and was distributed through restaurants and retailers, including Taco Bell and Walmart.
- Cyclospora is a parasite that can cause prolonged watery or “explosive” diarrhea, stomach cramps, nausea, bloating, and fatigue.
- The FDA says the recalled lettuce is no longer on the market, but investigators still haven’t determined exactly how the parasite contaminated the lettuce.
- Source: FDA
The lettuce may be recalled, but its impact has lingered.
Produce sales took a hit
“Produce took one of the steepest hits to volume sales during the month, with fresh fruit volume declining 6.1% and fresh vegetables declining 4.2%, according to Circana’s data. That’s impacted grocers like Kroger, which lowered its full-year comp sales guidance earlier this month on the belief that consumers will remain cautious about buying produce,” according to GroceryDive.
Circana Vice President of Fresh Foods Jonna Parker shared more data with The Packer.
“Total edible food and beverage sales dropped 0.7% in dollars and 1.3% in volume year over year between July 19 and Aug. 23 across all retail channels from Walmart to mom-and-pop stores. Produce went from a steady 2% dollar growth through early July to a sharp 6% in aggregate decline following news of the outbreak and has remained consistently down 5% to 6% every week since the week ending July 19,” Parker said.
That’s a problem for retailers like Walmart and Kroger.
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Kroger CEO talks about cyclospora impact
Kroger CEO Gregory Foran called out cyclospora during his company’s second-quarter earnings call.
“Turning to our results, sales were tracking well through the quarter until our final period when we absorbed the impact of the Cyclospora outbreak, which cost us roughly 35 basis points of total company IDs without fuel. Reflecting the impact of produce categories. Our identical sales without fuel grew 0.2%,” he said.
Foran was clear about the impact while also detailing how Kroger, which did not sell any of the impacted lettuce, responded to the customer reaction.
“Cyclospora also affected results late in the quarter. While the categories impacted were limited, customers responded more broadly across our produce department. Our teams moved quickly, followed established protocols, and worked closely with suppliers and regulators,” he added.
The CEO also made an effort to reassure customers.
“Food safety is our highest priority. And protecting consumer trust matters. We also remain disciplined in taking unnecessary costs out while delivering greater value to customers. Those priorities go hand in hand and supported strong gross margin performance despite top line challenges,” he shared.
Walmart has stayed quiet
Walmart, while it was directly involved in the lettuce recall, has not publicly commented on cyclospora. The FDA, however, confirmed its involvement.
“On July 17, the FDA announced that Taylor Farms de Mexico was the supplier of that lettuce, and Taylor Farms initiated its recall of all iceberg lettuce shipped to the U.S. market. In addition to Taco Bell restaurants, the recalled iceberg lettuce products were sent to Walmart stores, Jack in the Box restaurants, and major food service distributors, including Sysco, between June 29 and July 16,” Consumer Reports reported.
Walmart actually saw its grocery business increase during the impacted period.
“Our strategy is working, and therefore, we’re gaining share. In grocery, sales increased mid-single digits with strong unit volume growth and continued market share gains,” Walmart U.S. CEO David Guggina shared during the company’s second-quarter earnings call.
Questionable produce hurts grocery chains
While Walmart, which is only partially a grocery store, may not have been impacted as heavily as Kroger, produce worries hit supermarkets hard.
“Produce has always driven growth and trips,” Parker told The Packer. “Our frequency is our superpower. Produce is one of the most frequently bought departments in the store with many of the most frequently bought categories in the store.”
When headlines about the cyclospora outbreak chilled consumer demand for fresh produce, store foot traffic slowed in tandem.
“For an entire department that 99% of Americans buy — that has many of the most frequently bought items in the store — to be a source of loss isn’t just a big deal for produce; it starts to be a really big deal for shopping in general,” she added.
The sales drop carried over to other sections of the supermarket.
“Meat, seafood and bakery also recorded volume sales declines. Meat department volume sales declined 2.3% compared to last August, with processed meat seeing a particularly steep drop of 5.6%. Fresh seafood volume sales declined 1.9%, while bakery unit sales were 4.3% lower compared to last August,” according to Grocery Dive.
The FDA has declared the outbreak over, but the Associated Press shared an ominous warning.
“The outbreak cast a spotlight on a worsening problem: U.S. regulators are conducting fewer international inspections to catch contaminated produce before it lands on American plates,” the AP reported.
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