Mad Cow Disease is arguably one of the most substantial food-safety-related issues to have concerned the restaurant industry in recent years. In the United Kingdom, where the disease has had particularly widespread effects, the ramifications for the restaurant industry have been characterized as catastrophic—yet little empirical evidence supports this. This study examines changes in customers'in-restaurant purchasing behavior as measured through the sales activity of 86 London restaurants from 1995 through 2000. Results suggest that although restaurants did not experience an overall downturn in revenue following the outbreak of Mad Cow Disease, these same operations did see sales of beef items decline. Moreover, restaurants featuring few or no beef items experienced stronger overall sales than their counterparts with a strong beef orientation on the menu. Finally, the study indicates that educating customers at the point of service enhanced beef sales when controlling for promotional efforts aimed at nonbeef items.
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