Food Recalls on the Rise: How FDA Cuts Are Putting Customers, Retailers, and Restaurants at Risk

 

As of mid-2025, the number of food recalls in the United States is accelerating at a pace not seen in over a decade. From bacterial contamination in ready-to-eat meals to undeclared allergens in packaged snacks, these recalls are becoming disturbingly routine—and there’s a reason. Deep cuts to the U.S. Food and Drug Administration’s (FDA) budget and staffing are severely compromising the agency’s ability to inspect, test, and enforce safety standards. That’s a dangerous undercurrent for consumers and food sellers alike according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

In 2023, the FDA had a food safety budget of approximately $1.1 billion. By 2025, after consecutive congressional rollbacks, that budget has dropped nearly 15%, and with it, staffing reductions have impacted key food safety inspection and compliance operations. According to the Center for Science in the Public Interest, the average number of routine facility inspections has dropped by 22% in the last 18 months alone.

The Consumer Fallout: Trust Eroding, Safety in Question

Consumers are increasingly left in the dark—and in danger. In recent months:

·       A major deli meat recall sickened over 250 people across 14 states.

·       An undisclosed peanut allergen in a popular plant-based frozen entrée sent at least nine people to the hospital.

·       A listeria outbreak tied to bagged salad claimed two lives and led to over 300,000 units being pulled from store shelves.

Without robust FDA oversight, consumers have less assurance that what’s on their plate is safe to eat. Retailers and foodservice operators are left to fill the regulatory void, straining resources and increasing liability risks.

 

Top 3 Food Recall Risks for Grocery Stores

1.       Private Label Exposure: With more grocery chains expanding private label offerings to capture margin, they are taking on more liability. A recall tied to a store-brand item can devastate brand trust and customer loyalty.

2.       Cold Chain Integrity: Ready-to-eat and heat-and-eat meals rely on flawless refrigeration throughout the supply chain. One slip in temperature monitoring can trigger massive recalls and product spoilage.

3.       Allergen Mislabeling: As more consumers seek allergen-free or special diet foods (gluten-free, dairy-free, nut-free), mislabeled products are a growing hazard and a primary driver of FDA recalls.

 

Top 3 Risks for Restaurants

1.       Supplier Verification Failures: Without strong FDA checks on upstream suppliers, restaurants must verify every distributor and producer themselves—raising operational complexity and cost.

2.       Cross-Contamination in Kitchens: Undeclared allergens and bacteria like salmonella or E. coli can thrive in poorly managed prep areas. A single misstep could trigger lawsuits, negative press, and health department shutdowns.

3.       Speed Over Safety: In the rush to serve food faster, many chains are cutting corners in prep procedures, which can compromise food safety without routine external checks.

 

Top 3 Risks for Convenience Stores

1.       Limited Food Safety Training: Many C-store clerks are not trained to handle or monitor perishable foods properly. Without clear guidance from FDA oversight, basic food handling errors can multiply.

2.       Grab-n-Go Vulnerabilities: Fresh sandwiches, wraps, and cut fruits are often made off-site or packaged in-store. With fewer inspections, improper handling can lead to dangerous contamination events.

3.       Third-Party Delivery Risks: Many C-stores now use third-party commissaries to prep meals. If one link in the chain fails to meet safety standards, it can cascade across dozens or hundreds of stores.

 

Four Things Consumers Must Now Keep Top of Mind

1.       Know the Source: Ask where food was made, prepared, or packaged. Trustworthy retailers and restaurants should know and be transparent about their supply chains.

2.       Check Dates & Storage: Be vigilant about “use by” and “best by” dates, and avoid items that appear improperly refrigerated or stored—especially with meats, dairy, and fresh produce.

3.       Allergen Awareness: Always read ingredient labels and don’t rely on generic “free-from” marketing tags. With fewer inspections, mislabeling risk is up.

4.       Sign Up for Recall Alerts: Visit www.foodsafety.gov and subscribe to email or SMS alerts to be notified in real time of national food recalls.

 

Think About This from the Grocerant Guru®

We’re living through a pivotal moment in American food safety. With the FDA’s reduced ability to serve as our national food watchdog, every link in the food chain—from processors and packagers to the point-of-sale—must step up. But let’s be clear: the consumer bears the highest risk. Retailers, restaurants, and C-stores must treat safety not as a regulation to follow, but as a brand pillar to build trust.

If you’re in food retail or foodservice, remember: a single recall can undo years of brand equity. As for consumers, the path forward is one of proactive awareness and vigilance. Food safety is no longer a given—it’s a shared responsibility.

Steven Johnson, the Grocerant Guru® at Foodservice Solutions®, is an industry thought leader specializing in consumer food trends, Ready-2-Eat and Heat-N-Eat meal solutions, and strategic branding at the intersection of grocery, restaurant, and convenience store channels.