Despite rising public consciousness about the health hazards of obesity, the commercial diet industry is wasting away in the 1990s.
Former U.S. Surgeon General C. Everett Koop just launched his "Shape Up America" crusade targeting obesity as the second-leading cause of death in this country (behind smoking). A recent report from the Institute of Medicine in Washington calls it a "worsening epidemic" leading to premature illness.
Yet the commercial diet industry, featuring high-visibility franchises such as Weight Watchers, Jenny Craig, Nutri/System and Physician's Weight Loss Centers, suffered a 15 percent drop in revenues to $1.7 billion last year. And in recent years, the number of weight loss clinics has declined by 1,200, to 5,500 nationwide.
Some reasons for this fall from favor were congressional hearings and general publicity about studies that indicate only a small percentage of clients successfully keep weight off long term. There's been turf encroachment by health clubs that are adding nutrition to their services.Professionalism of employees has been brought into question, fanned by revelations from disgruntled former staffers.
The industry brought much of the negativism upon itself by overhyping potential results. The Federal Trade Commission (FTC) a year and a half ago alleged that five of the largest commercial diet companies engaged in deceptive advertising. While three settled and changed policies, Weight Watchers and Jenny Craig challenged those charges and are awaiting court dates.
"A common theme in many ads was that this would definitely be the last diet you'd ever need and that your weight loss would be permanent, even if you'd failed at other programs," said Richard Kelly, assistant director for service industry practices with the FTC.
The FTC says any firm making such claims must back them up.
"Many people who come to see me for help have gone through every single one of the commercial diet programs first," noted Elizabeth Ward, a registered dietitian and spokeswoman for the Chicago-based American Dietetic Association, professional association for dietitians. "However, I don't want to bash those programs because it really does depend on the person and his or her ability to think long term and make changes in habits."
The average client spends $608 for a four-month period in a typical commercial program, according to calculations by Marketdata Enterprises Inc. of Valley Stream, N.Y., whose publications include a bulletin on the diet industry.
"I don't know that diet programs are worth the money, because I've learned from being in several there really aren't any secrets," said 26-year-old Nicole Kitchen of Silverdale, Wash., a former client in three different programs.
Once each program's control ended, Ms. Kitchen was completely lost and gained back the weight. So she finally decided one day to make better choices at the grocery store on her own. It's working.
Under fire, the largest commercial diet programs have been revamping their programs. Rather than strictly weight loss, the concepts of weight maintenance, overall wellness and exercise are emphasized.
Different programs make money different ways. "Jenny Craig earns about 90 percent of revenues from sale of its food products, while Weight Watchers earns 65 percent from food and the rest from the weekly meeting and registration fee," explained John LaRosa, research director with Marketdata.
Safety and price are considerations. "Our program is designed to produce a safe rate of weight loss of one to two pounds a week," explained Brian Luscomb, spokesman for Jenny Craig Inc., Del Mar, Calif. "While clients are paying approximately $70 a week for food, with the exception of some fruits, vegetables, whole grain and dairy products, that is their weekly food bill."
When looking into a commercial diet program, find out if it's reputable, financially sound and established. Determine whether it offers safe weight reduction. Learn how it works and ask for data proving effectiveness. Ask about costs as well as the payment schedule and whether you receive refunds if you drop out.