The History of Nutrisystem – Modern Innovator
In 1971, 34-year old Philadelphia native Harold Katz got an idea in his head after witnessing his own mother’s struggles with weight loss. Katz was the son of a grocer with no college degree, yet he set out to create a weight loss system that broke the commonly-held perceptions about weight loss by including medical supervision and behavioral counseling, along with low calorie meals.
The Flourishing First Decade
Since he lived in Philadelphia, Katz’s first center opened up in nearby suburb, Willow Grove. Over the next few years, many more centers began to open up, many of which were franchises. During this period, Katz’s company (which was not known as Nutrisystem until around 1980) was ranked as one of the one hundred fastest growing companies in the United States.
The company went public in 1982, and Katz’s one-time small company exploded into a $300 million company. With this newfound wealth, Katz relocated the company into a new $2 million building in Huntington, PA, bought a mansion, and even purchased the Philadelphia 76ers.
The Rough 80s and 90s
The 80s was initially a boom time for Nutrisystem. The company was in all fifty states, operating roughly five hundred weight loss centers. Every year, Nutrisystem doubled its revenue. Harold Katz decided to broaden his horizons by venturing into other businesses, like salons and cosmetics, among others. Katz overextended, however, and it was not successful.
Katz’s various ventures created tension among the Nutrisystem franchisees and lawsuits were filed. In 1985-86, many changes were made to shore up the company. The company:
- Hired a new CEO
- Bought Harold Katz out
- Returned to private status
These changes allowed Nutrisystem to expand to nearly two thousand weight loss centers and revenues exploded to $764 million.
The rough times were not over yet, however. More lawsuits were filed, and Nutrisystem filed Chapter 11 in 1993. Obviously diminished, the company decided to take to the new technology called the Internet and became a purely dot-com company in 1997.
The Modern Nutrisystem
Nutrisystem was truly reborn on the Internet. In addition to marketing their system online, they entered into a fruitful relationship with QVC and sold many of their products on TV, which actually now accounts for over 20% of Nutrisystem’s food sales.
Today Nutrisystem continues to flourish and provides diet programs online via its website and through many affiliates. Their website is a one-stop shopping area for Nutrisystem, offering online and telephone weight loss counseling and selling their weight loss programs and foods.
They keep a strong presence on television as well; with celebrity endorsements from entertainers Marie Osmond and Jillian Barberie and football players Dan Marino and Don Shula keeping Nutrisytem prolific in many commercials. They also keep a strong relationship with QVC and sell many products on that network.
The Future
Every company has its ups and downs, but Nutrisystem has managed to survive and even flourish in this environment. If you need to lose weight and get in shape, Nutrisystem can help you meet your dietary needs. Even if you have already downloaded a Medifast discount, consider reading a Nutrisystem diet review and see if it is a diet that appeals to you.
About the Author
Melissa Cameron is a married homemaker with two wonderful children. She enjoys spending time with her family, digital photography, and learning about new things. Her newest passion is getting into shape, losing a little weight, and improving the eating habits of her husband and kids at the same time.
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