Jenny Craig's Revival: Nutrisystem Breathes New Life into the Traditional Weight Loss Program

Nutrisystem plans to invest about $8 million in the Jenny Craig brand.

Jenny Craig, the weight loss program that relies heavily on its brick-and-mortar centers, is being revived under the ownership of Nutrisystem. Both Jenny Craig and Nutrisystem have been around for decades, but their fortunes have diverged in recent years. Nutrisystem, which sells meal plans online, has grown substantially, while Jenny Craig has struggled. Since acquiring the brand in May, Nutrisystem has overhauled the menu, cut prices, and launched new marketing campaigns. Nutrisystem CEO Dawn Zier said the company expects the brand to be profitable within a year. Jenny Craig, which has about 300 centers globally, doesn't face the same level of competition as online-only programs like Nutrisystem or Weight Watchers.

 Nutrisystem executives believe there is a market for both the convenience of meal plans that don't require a physical visit and the accountability of in-person meetings. They also want to appeal to younger customers who may not have heard of Jenny Craig before. Nutrisystem plans to invest about $8 million in the Jenny Craig brand. And while Dawn Zier is optimistic about Jenny Craig's future, it's still a business that lives and dies by customer success. Nutrisystem is banking on the belief that its expertise in meal plans and logistics can help breathe life back into a brand that has lost some of its luster.