Salad and Go has filed for Chapter 11 bankruptcy protection and announced the closure of all remaining locations on Wednesday. The company attributed the decision to a combination of longstanding strategic growth difficulties, declining consumer demand, and increased operational costs. A cyclospora outbreak occurring in July significantly exacerbated these existing challenges by damaging consumer confidence in fresh produce across the quick-service restaurant sector, despite Salad and Go not being directly implicated in the outbreak.
The cyclospora water-borne parasite has affected at least 10,000 people according to the Centers for Disease Control and Prevention, with two deaths reported by the Michigan Health Department. The outbreak has created ripple effects throughout the industry. Taco Bell, operated by Yum Brands, experienced notable traffic declines after the FDA linked iceberg lettuce at certain locations to the outbreak, though the chain removed affected supplies and reported early signs of sales recovery. Other restaurant chains, including Chipotle Mexican Grill, have also reported reduced sales despite having no direct connection to the outbreak, reflecting broader consumer hesitancy about fresh lettuce products.
Salad and Go was established in 2013 as a competitor in the fast-casual salad market. The company was acquired by private equity firm Volt Investment, which bought out founders Tony and Roushan Christofellis in 2021. Under then-CEO Charlie Morrison, the company pursued aggressive expansion that more than doubled its store count before his departure in late 2024 following reported disagreements with the board.
Mike Tattersfield, former CEO of Krispy Kreme, assumed leadership in 2025 and oversaw significant store closures in Texas and Oklahoma. This restructuring reduced the company’s footprint to approximately 70 locations concentrated in Arizona and Nevada, all of which will close on Wednesday. According to the bankruptcy filing, the company carries assets and liabilities each valued between $500 million and $1 billion.
Article Attribution | Read More at Article Source
Article summary produced by Claude AI