Diet and Weight Reducing Centers

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Quarterly Insight, Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 1,300 diet and weight reducing centers in the US help individuals attain or maintain a desired weight using non-medical methods. Weight loss services account for the majority of industry sales. Firms may also sell weight reduction products, such as food supplements or prepared food products.

Competition from Alternative Service Providers

Diet and weight reducing centers compete with a range of alternative service providers, including health care providers, fitness centers, pharmaceuticals, self-help programs, and surgical procedures.

High Customer Failure Rate

Most consumers fail to achieve or maintain weight loss through traditional programs.

Industry size & Structure

The average diet or weight reducing company operates out of a single location, employs about 16-17 workers and generates $1-2 million annually.

    • The diet and weight reducing services industry consists of about 1,300 firms that employ about 22,400 workers and generates almost $2 billion annually.
    • Franchises account for half of the industry. Franchisees account for 21% of establishments.
    • The industry is highly concentrated; the top 50 companies account for 72% of industry revenue.
    • Large firms, which include WW (Weight Watchers), Jenny Craig, Medifast, and Nutrisystem (Tivity), may have international operations.
                            Industry Forecast
                            Diet and Weight Reducing Centers Industry Growth
                            Source: Vertical IQ and Inforum

                            Coronavirus Update

                            Apr 11, 2022 - Eating Disorders Increased During Pandemic
                            • Eating disorders began to spike among young people shortly after the onset of the COVID-19 pandemic, according to a study published in the Journal of Adolescent Health. Experts believe that the increase occurred due to disruptions in daily living, emotional distress, and more time spent on social media, which research has shown can lead to lower self-esteem and contribute to negative body image. The National Eating Disorders Association reports it saw a 107% increase in contacts to its hotline between March 2020 and December 2021. Studies have suggested that patients who already had an eating disorder diagnosis got worse during the pandemic.
                            • Sixteen states now have obesity rates of 35% or higher, according to the Centers for Disease Control and Prevention. That's an increase of four states — Delaware, Iowa, Ohio, and Texas — in just a year. Experts say that the findings confirm what several recent research studies have found: Many Americans have gained significant weight since the COVID-19 crisis started, likely fueled by an increase in sedentary behavior, stress, and troubles such as job and income loss that make healthy eating harder. A Cleveland Clinic study shows that overweight people are at a higher risk for developing a more severe form of COVID-19, which may require hospital admission, need for intensive care, and the use of a ventilator.
                            • Isolation provides the right environment for eating disorders to thrive, according to psychologist Susan Albers. “When you are alone you can eat — or not eat — in any way that you choose. We’ve experienced some extreme levels of isolation with the pandemic,” Albers said. “It may also explain why we may have seen an increase in the number of people who were calling help centers about eating disorders.”
                            • Nearly 70% of respondents to a survey conducted by University of Texas researchers reported that it was more difficult to achieve their weight loss goals during the pandemic, with about half spending less time on exercise. The researchers said that interventions, including telehealth options and outreach efforts are needed to improve outcomes.
                            • As of April 3, the Small Business Administration had forgiven more than 85% of the $789 billion in PPP loans issued since the program was launched in 2020. About 86% of all PPP loan recipients have submitted forgiveness applications.
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