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Business Wars

Encore: Diet Wars | Up From Down Under | 2

Business Wars

Wondery

History, Business, David Brown, Management

4.613.2K Ratings

🗓️ 29 March 2023

⏱️ 42 minutes

🧾️ Download transcript

Summary

It's 1983 and civil war's broken out within Nutri/System. But while CEO Harold Katz fights his franchisees, his former colleague Jenny Craig has grand designs on Australia.

Craig wants to use Australia as a staging post on the way to becoming a U.S. heavyweight, but first she's got to convince women Down Under to diet like Americans. And that's going to be anything but easy.

This episode was originally released as a Wondery+ exclusive

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Transcript

Click on a timestamp to play from that location

0:00.0

A note to listeners, the material in this episode covers the weight loss industry and diet culture,

0:06.6

which could be upsetting for some people.

0:09.0

This episode also contains adult language.

0:12.2

This series originally aired exclusively on Wondering Plus in 2022.

0:18.2

January 1983

0:30.0

In a large hotel conference room in Philadelphia,

0:32.8

Nutra Systems annual parties underway.

0:36.2

A DJ in a velour sweatsuit spins the record, as disco lights swirl around the room.

0:43.0

He's working it.

0:44.5

But no one's dancing.

0:46.3

Instead, Nutra Systems executives in franchisees stand on separate sides of the deserted dance floor.

0:54.0

At the bar, a Nutra System executive rages at a franchisee who's just ordered two cocktails.

1:00.4

You son of a bitch, you're trying to wreck our company.

1:03.3

You're the ones killing the business.

1:05.1

Your overpriced food is driving customers away.

1:08.2

Why should I get gouged by you when I can buy the same food at half the price?

1:13.2

I didn't hear you complaining when the money was just rolling in.

1:16.3

Now that you've actually got to get off your ass to get customers, all you franchisees are whining like little babies.

1:23.1

It's nine months since Nutra System bought the Gloria Marshall figure salon chain from Jenny Craig.

1:29.7

Back then, Nutra System and its 600 weight loss centers were flying high.

1:35.6

Now, it's a business in crisis.

1:39.4

To protect its profits, Nutra System hiked the price of the diet food itself to its franchisees,

...

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