Multistate foodborne illness outbreaks bring swift financial losses to restaurants, increased media attention and an environment that makes subsequent smaller outbreaks more financially damaging, a new study says.
The research, from University of Illinois Urbana-Champaign’s consumer economics professor Maria Kalaitzandonakes, said that more than 60% of foodborne illness outbreaks in the U.S. occur at restaurants, according to a news release.
Most of those outbreaks are confined to a single state, however, when restaurants experience multistate outbreaks — as did the fast-casual chain Chipotle Mexican Grill in 2015 — that can lead to a stock market penalty, substantial negative news media coverage and a discernible change for the worse in how investors and the public view the company’s smaller outbreaks, according to Kalaitzandonakes.
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