Paper: Multistate foodborne illness outbreaks impact restaurant stock price, public perception
As demand for food from restaurants soars in the U.S., so does the importance in understanding the impacts of foodborne illness outbreaks. A new paper co-written by a University of Illinois Urbana-Champaign expert in food marketing and food policy finds that outbreaks spanning multiple states bring swift financial losses, increased media attention and a public-relations hit that makes smaller outbreaks more financially damaging.
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, says Maria Kalaitzandonakes, a professor of agricultural and consumer economics at Illinois and lead author of the study.
Read more from the Illinois News Bureau.