On September 17, a lawsuit was filed alleging that 7-Eleven dismissed its former director of private label product development after he raised food safety issues, which led to delays or cancellations of several product launches.
Federal whistleblower allegations
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.
In the September 17 filing, Varun Khanna, who previously oversaw product development for 7-Eleven’s private label brands, stated that he flagged multiple safety issues. These reports halted or postponed product launches due to vendors’ failure to comply with FSMA and FDA standards.
Khanna began his role at 7-Eleven in late September 2024. At the time, he told C-Store Dive that his focus was on “ingredient-led product development,” collaborating with the company’s merchandising, operations, logistics, and procurement teams. According to the lawsuit, Khanna reported directly 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.
As part of its strategy to position its North American convenience stores as food destinations, 7-Eleven introduced 175 proprietary products in fiscal 2025. This initiative heavily relies on new product launches, making food safety risk management a critical operational challenge for the company.
Dismissal and counterarguments
The lawsuit claims that 7-Eleven terminated Khanna in June 2025, approximately three weeks after he last reported a supplier’s alleged FDA non-compliance.
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.
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.
A spokesperson from 7-Eleven declined to comment on the lawsuit. Khanna is seeking various damages, according to the lawsuit, though the suit does not specify a dollar amount.
