Panda Express, the U.S. fast-casual chain, has agreed to pay approximately USD 1 million in penalties and costs after California authorities found that the company failed to properly train staff on handling carbon dioxide (CO₂) used in its soda-fountain systems.
- The judgment, filed November 20, 2025 in Riverside County Superior Court, resolved a civil lawsuit brought by a coalition of 37 county district attorneys and two city attorneys alleging violations of the state’s hazardous-materials regulations. The case covered more than 500 Panda Express locations in California.
- Under the agreement, Panda Express will pay US$881,925 in civil penalties, US$100,000 toward supplemental environmental projects, and US$75,000 in cost reimbursement, bringing the total to about US$1.056 million.
- The lawsuit alleged that the chain failed to train employees on safe CO₂ storage, handling, and leak detection, including how to detect potential leaks from tanks and supply lines. Employees also did not receive the required documented certification, nor did the company submit proof of such training to state regulators as mandated by law.
- According to the district attorney’s office: when mishandled, CO₂ leaks can displace oxygen, creating “serious health effects or even death.”
Panda Express reportedly implemented corrective actions during the investigation, updating training protocols and properly documenting CO₂-safety training across its California restaurants. The settlement includes a five-year compliance injunction under the relevant state hazardous-materials statute.
While the chain has previously invested in environmental measures, including deploying smart-building energy systems in many of its locations, this case underscores that “green” or sustainability efforts must also align with basic safety and regulatory compliance.
This settlement serves as a warning for global foodservice and quick-service operators: reliance on CO₂ for soda-fountain beverages carries real safety and regulatory risk. In jurisdictions with strict hazardous-materials laws, failure to train staff or comply with documentation standards can result in costly legal consequences.
