Dive Brief:
- 7-Eleven is being sued by a former company director for allegedly violating the employee whistleblower protection provisions of the Food Safety Modernization Act, according to a lawsuit filed with the U.S. District Court for the Northern District of Texas.
- During his eight months with 7-Eleven, Varun Khanna, the retailer’s former director of product development for its private label brands, said he reported multiple safety concerns that delayed or blocked product launches when vendors failed to meet FSMA and FDA requirements, per the Sept. 17 lawsuit. The suit alleges that this “protected activity” under the FSMA was a contributing factor in his termination by 7-Eleven.
- Khanna is seeking various damages, according to the lawsuit, though the suit does not specify a dollar amount. A spokesperson from 7-Eleven declined to comment on the lawsuit.
Dive Insight:
Khanna joined 7-Eleven in late September 2024, telling C-Store Dive at the time that he was focused on “ingredient-led product development” and would work alongside the retailer’s merchandising, operations, logistics and procurement teams. According to the lawsuit, Khanna reported to Nicole Boyers, 7-Eleven’s vice president of private brands.
Per the lawsuit, 7-Eleven gave Khanna “executive-level food safety scientific and FDA food safety assurance authority” to ensure its private label products were developed in compliance with FDA regulations. Khanna, Boyers and another team member met almost every week to review supplier manufacturing progress and product launch timelines, according to the suit.
Among the private label items Khanna raised safety concerns about were powdered hydration sticks, vitamin water and a juice product, according to the lawsuit. These reports resulted in delays to product launch deadlines that had been set by Boyers before Khanna was hired.
According to the lawsuit, 7-Eleven terminated Khanna in June 2025, about three weeks after his most recent report of alleged FDA non-compliance by a food manufacturing supplier.
Khanna alleges that the timing of his termination along with the absence of documented disciplinary or performance notices during his employment, indicates that his food safety reports contributed to his firing.
“7-Eleven's failure to issue Mr. Khanna any contemporaneous written disciplinary notice nor formal performance failure notice at any time during his entire tenure with 7- Eleven is evidence that Mr. Khanna’s protected activity is a contributing factor causing his abrupt firing,” Khanna’s attorneys wrote in the lawsuit.
According to the lawsuit, 7-Eleven later cited alleged dishonesty, performance issues, a lack of improvement, a pattern of lying to avoid trouble, code of conduct violations and “grossly unethical behavior” as the basis for its decision.
The lawsuit comes as private label remains a key part of 7-Eleven’s push to make its North American convenience stores food destinations. In fiscal 2025, the retailer released 175 proprietary products in its stores.
