The Big Flop - Jenny Craig: Cashing In On Crash Diets with Ronald Young Jr. and Emmy Blotnick | 90
Episode Date: June 2, 2025In the '90s, Jenny Craig wasn't just selling frozen meals – she was selling the American dream, one tiny chocolate cheesecake at a time. But between shady advertising claims, the Fen-Phen c...risis, and a jaw injury that silenced their spokeswoman, this weight loss queen discovered that even the most carefully counted calories couldn't save her empire from crumbling.Ronald Young Jr. (Weight for It) and Emmy Blotnick (The English Teacher, Bust Down) join Misha to shed some light on the many missteps of this dieting heavyweight.Be the first to know about Wondery’s newest podcasts, curated recommendations, and more! Sign up now at https://wondery.fm/wonderynewsletterListen to The Big Flop on the Wondery App or wherever you get your podcasts. You can listen early and ad-free on Wondery+. Join Wondery+ in the Wondery App, Apple Podcasts or Spotify. Start your free trial by visiting wondery.com/links/the-big-flop/ now.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.
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Imagine.
It's the 90s and you've invested in Jenny Craig's frozen diet meals and they've
sent you some dessert.
You defrost your triple chocolate cheesecake and pull back the lid to reveal one bite of
cheesecake.
Where's the cake, Jenny?
Everybody wants to lose weight quickly and easily. bite of cheesecake. Where's the cake, Jenny?
Everybody wants to lose weight quickly and easily.
At Jenny Craig, we get results.
Weight loss giant Jenny Craig may shudder its corporate office
as soon as this Friday.
The company struggles just one sign of a seismic shift
in the $75 billion diet industry.
We are on a sinking ship. dollar diet industry.
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Last year, long crime brought you the trial
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From Wondery and Atwill Media, this is The Big Flop,
where we chronicle the greatest flubs,
fails and blunders of all time.
I'm your host, Misha Brown, social media superstar
and trying to get down to my birth weight at your bestie, Misha Brown, social media superstar and trying to get down to my birth weight
at your bestie Misha.
And on our show today, I'm so excited
because we have a prolific podcast host.
You can catch him on several shows,
including Pop Culture Debate Club and Wait For It.
It's Ronald Young Jr.
Hey, Ronald.
Hello, Misha.
I'm happy to be here.
Joining Ronald, we also have a comedian, actress, and writer.
It's Emmy Blotnick. Hey, bestie.
Hi. Thanks for having me.
Before we get into Jenny Craig,
have any of us tried weight loss diets?
And I guess was it Jenny Craig?
I recall Jenny Craig, but I don't think I had...
I think I was a child with no money in Jenny Craig's peak.
Sure, sure, sure.
So I've had to resort to lower cost options.
I never did Jenny Craig, never did Weight Watchers, anything like that.
But I feel like I've been surrounded by diet culture most of my life.
Okay, we're not Jenny Craig alums here. So let's get into the saga.
Jenny Craig, the person, nay. Genevieve Marie Goudreau was born in 1932 in
Louisiana. She's the youngest of six children and times are tough because
it's the old Great Depression. Her father works three jobs just to keep the
family afloat and Jenny idolizes him. As America's economy springs back following
World War II, Jenny, like many who grew up in the 30s and 40s, comes to believe that
anything can be accomplished if you just work hard enough at it, just like her daddy did.
We love some delusional post-war optimism.
Now, I just want to give a quick disclaimer. It's important to set one thing straight before we get into the rise and fall of the Jenny Craig Weight Loss Company.
It is almost universally accepted now that losing weight is an incredibly difficult thing to do.
Like, it's unnatural.
Our bodies have an equilibrium, and when we drastically mess with it, we can become less healthy, even if we slim down temporarily.
Unfortunately, despite Jenny Craig being sort of the uber-empowered business lady to some,
her company does contribute to toxic diet culture.
And some may even say misogyny.
So we just want to put that out there at the beginning.
That's what I'm talking about, Misha.
Right off the top.
Let them know where we stand.
I love it.
Let them know. Shame on you, Genevieve.
Well, Jenny's family, they can't afford to send her to college. So she heads straight
into the workforce and she also starts a family. And this seems to be where her fixation on
weight loss begins. After her second kid, the weight was just not coming off and Jenny,
she is not happy about it. So what does good old Jen do? She gets hyper fixated on all
things fitness. She becomes a regular at a gym called Silhouette and she scours the local
library for books about dieting and health. And the managers of Silhouette gyms, they
are impressed because she's not only exercising,
but she's almost evangelical about it.
Talking to everyone in sight about their own weight loss goals, which, boundaries.
I have to say just as an aside, silhouette is a great name for a gym because a silhouette
can actually be any shape.
I feel like when they say silhouette, that sounds ambiguous, but what if they
would have called the gym something like flattery or flattering?
But they use something that was a little bit more ambiguous.
So you're absolutely right.
Yes.
Come to the gym, a person's shadow.
But can you imagine Genevieve just like walking up to random strangers and just being like,
Hi, how are you on your weight loss journey?
So I'm a headphones in, don't talk to me, don't look at me.
I'm in my own world.
You know, as somebody who's been at the gym on the treadmill working out and had people
walk up to me to give me advice for losing weight.
Oh, like this is not surprising.
Like I'm like, I'm already here.
I'm doing the thing that you're shaming me into
doing it. You're still like, Hey, you want to do that more? You
want to speed that treadmill up? Like, could you make this faster?
Leave me alone. Yeah, it sounds like maybe she had like now that
we're talking about it. I'm like, this is kind of a harassment
campaign.
Approaching exercising exercising people?
What are you thinking, Genevieve?
Well her harassment campaign, it works because by the early 1960s, Jenny's managing five
silhouette locations.
And she mortgages her home to open her very own gym called Healthletic and quickly sells
it to Silhouette.
So she's a business woman everybody.
Wow. What is Healthletic a portmanteau of? Is it health and athletic or is it like health and
fanatic? What are the words we're using here? It's health and fabletics, the Kate Hudson yoga pants.
Gotcha. So it's a portmanteau of another portmanteau. Yeah, there we go.
There we go.
Jenny also works with her sister on a body wrapping spa idea and then moves on to work
for another company, Body Contour Inc. figure salons, which if you think that's a mouthful,
that's how companies used to be named.
So stop yelling at me for it.
I'm with the portmanteau back now.
I was like, can you smash all those words together, please? Please. At Body Contour, Jenny meets her future
everything, Mr. Sid Craig, a former child tap dancer turned ballroom dance instructor who worked
his way up over the years at the company to become president of Body Contour. Sid was also born in 1932, so they're both Great Depression kids and
have been shaped by hard times. For nine years, Sid and Jenny work side by side while married to
other people, barely containing their desire for each other, furred of glances, etc. etc.
But in 1979, they finally divorce their mutual spouses
and tie the knot in Vegas.
And we have a picture of them.
Here they are.
Wow.
Wow.
I don't know what I was expecting,
but the top hat certainly sends a message.
Yes.
And I didn't realize until I saw this photo
that a woman in opaque white hosiery is that is
sort of the ladies top hat.
There's something about the stark, this ghostly, ghostly hose.
It's really striking.
There's something about the way that he's the way he's doing the piano hands on the shoulder to immediately.
I'm like, is this a cry for help?
Like, what are we? What's going on here?
Yeah, it's very like, look what I caught, like guy with a trout sort of pose.
And this looks like is this Commander's Palace in New Orleans?
It could be.
This really has a sort of like slightly haunted look to the decor.
For sure, for sure.
But yeah, for the listeners only, they are very prim.
They are very proper.
Cute couple.
We'll give them that.
They're a cute couple.
So Sid supports his amazing new wife at every step along the way as she climbs.
What about the last wife?
What about the other wife?
I'm still thinking about like, wife? What about the other wife?
I'm still thinking about like, I can root for this couple, but like, are we're just going to leave another man and woman in the dust? Who knows? Maybe they found
each other and they're very happy. I don't know. Oh my God. So by 1981, Jenny has become the National Director of Operations for Body Contour's owner.
What's not so great is that she and Sid start bickering with the owners.
And after some behind the scenes negotiating, an agreement is struck to sell the figure salon to a new up and coming company that sells pre-packaged diet meals, Nutrisystem.
Oh boy. Oh boy. Oh boy. These are like the Avengers of diet
culture. Like the I'm sorry, not even the Avengers. What is the
opposite of the Avengers? Whatever that is. They're the
bad of diet culture.
The Expendables? Is that a different franchise?
I think those were good guys too. Whatever they are, these
are the bad guys.
These are the bad guys. Yes, Jenny and Sid are now free
from their stifling partners at Body Contour
and can start their own company.
And they also make out like bandits.
For their part in this sale,
Jenny and Sid are going to make $7.5 million.
That's like $25 million in today money.
And they'll get another half million to stay on
and help Nutrisystem
with the transition.
So I'm guessing I can already tell, but how do we feel about these pre-packaged diet meals?
I've had Nutrisystem food and it's garbage.
It just doesn't taste good.
They try to convince you, oh my God, it's so good.
You'll just want to keep eating it.
I'm like, no, I don't want to keep eating it. I guess that's kind of the point of NutriSystem
is that you eat it, you get sad, and you're like, I don't want to be food anymore.
And I get sad.
Is it frozen? What are they?
They're frozen, pre-packaged meals that you just heat up in the microwave.
Talk about the sodium content.
up in the microwave. Talk about the sodium content. It's like airplane style, like the little tray and it's microwaved and like, or I guess
the oven if you love yourself, but it's like, there's only so there's a ceiling on how
good a little a little foil rectangle can be.
Yeah.
Now, another problem is that Jenny and Sid really don't like working with Nutrisystem
C-suite.
And it's like it's a gross cigar filled boys club, right?
There's actually a riveting five part series about this called The Diet Wars from Wanderys
Own Business Wars.
Very fun.
Go listen to that.
So Jenny and Sid bailed halfway
through their one-year commitment with Nutrisystem, but they kind of liked the idea of selling pre-paid
meals. However, they signed a non-compete for the buyout for two years. All diet and weight loss
businesses are off the table for the power couple. Except in Australia. So with over $7 million to play
with, Jenny and Sid head down under to test out their brilliant ideas with the goal of
coming back to America in two years with a brand already built. And Sid suggests they
call their company Jenny Craig. How sweet. Wow. How sweet. Is it sweet or is it like passing the buck? Is it kind of like, like, if this goes south,
they'll blame you? I don't know. I don't want to aspire malicious intent to, to Sid.
So Jenny Craig's comprehensive weight loss program will include weekly counseling, as well as lifestyle classes and behavior modification tapes on cassette.
So like a podcast.
And there's also a low impact exercise program.
But most importantly, there's the food.
Jenny's own prepackaged and frozen meals.
Do you have any idea what makes Jenny Craig's cuisine
so special compared to her competitors?
The sodium?
Margarine? It's usually...
I thought it was a very margarine heavy time.
Butter and salt?
No, the answer is nothing.
Nothing. The meals aren't that much healthier
than a typical TV dinner, but they are smaller.
Yeah.
Oh my god.
They figured it out.
The key to the Jenny Craig diet is calorie restriction.
The target zone is 1200 to 1700 calories per day and depending on how we're built, most
adults need between 2 and 3000 calories per day.
So Jenny Craig's meals, even if they're technically decadent sounding
things like chicken fettuccine Alfredo or triple chocolate cheesecake are teensy. And
if you're really hungry, the program lets you eat as many vegetables as you want, which
of course you have to buy yourself.
Do you know how infuriating it would be to open a triple chocolate cheesecake and it'd
be like one bite?
Yeah, you're like, where is it?
I'd be so angry, tear the room apart, be like, come on, man.
I know myself, if I were like, okay, I'm going to be on this like super strict Jenny Craig
diet and I was looking forward all week to that triple chocolate cheesecake and it came
out and it was one bite, I would go on a binge. It would do the opposite. How do you not just eat your whole
week? Yes, if not or like you're losing weight from tearing the room apart in anger, punching
holes in the wall. Where's the rest of the cake? Rage does burn calories. So by 1983, Jenny and Sid have spent half their money on opening
nine weight loss centers across Melbourne, but nobody signs up. Australians don't know that they
need weight loss centers yet. So how would you convince them that they absolutely need to like,
what would be your business plan? I'd say, oh, I might.
It's a strong start.
Strong start.
You need some shrimp on the bar.
I have no idea.
I don't know how to talk to Australians.
I love it.
I love it.
You are very committed.
They'd be mad at me for being a bigot.
I'm sorry.
Yeah, it's tough because the Australians are kind of a like naturally hot people.
There's like they all surf and run and stuff.
So like do you just have to go nagging people with your husband like door to door?
Do you want to move like ray gun?
Catching strays every day.
every day. Yeah.
We gotta get her.
Ha ha ha.
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What Jenny and Sid do is they borrow some money and they open up even more centers to make the
Jenny Craig brand seem more successful. Classic. And they get really crafty with their ad campaigns, which are a cross between PSAs and infomercials.
And in many of them, Jenny speaks directly to camera,
sometimes surrounded by women in lab coats,
while she weightsplains the process.
Wait, hold on, Risha, did you just say weightsplain?
Weightsplains.
I can't let you slide, but that's not a thing.
Yeah, that's not a thing.
It's an instant classic, actually.
You were just going to coast right by,
like we didn't hear you say that.
I'm like, yeah, let me just try this one.
We heard you.
OK, OK.
So these ads, they also include before and after pictures
with quote unquote real testimonials
from folks who've lost weight on the program.
Let's take a look.
I was a fat person with a thin person inside.
Jenny's program has given me a whole new life.
I lost 16 kilos in three months.
You know, okay, so the first thing is, as an American about to say the most American
thing ever, when they say and I know we should be on the metric system, but whenever they say 16 kilos, I'm
like, I don't know if that's a lot of weight.
That could literally be anything, lady.
Is this a success or not?
I think 16 kilos is the amount of cocaine you're allowed to have for personal use.
And she looked fine before is the other thing. I think they put her in a big nightgown in the before picture. Yeah, it was really the outfit that was doing the worst to you. It was not your
weight. Just change your clothes. Yeah. She could have been like earlier today, I was in a very unflattering night down and
now I've put a belt over my blazer.
I also want to know was I was a fat person with a thin person inside scripted or just
like off the cuff.
It's kind of like, there's something very dark and existential about that, right?
That's a whole principle like and that was like what they were doing at that time is
it well there's a thin person inside you waiting to get out. I'm like, what is the thin person
in the room with us right now? What are you talking about? Like, what's the difference
here? Yeah, that's yeah, they're like, I haven't met her yet. I don't know. Hello, is she in here? Yeah.
Yeah.
Like somehow she has to break out of the fat bucket.
Oh.
So Jenny and Sid hope all this PR
will discourage other weight loss companies
from muscling in on their turf,
all while Australians realize
how desperately they need to lose weight.
And it works, actually.
By the end of their first year in Australia,
Jenny and Sid have opened 50 weight loss centers,
and that number quickly doubles.
And with that kind of momentum
and the two-year non-compete timed out,
the path is clear for the Craig's triumphant return
to the good old US of A.
What could go wrong?
No, no, seriously, like what could go wrong?
What? Like, I know this probably negates the format of the podcast, because I think we're
going to find out what actually goes wrong. But like, the real question is what can't go wrong?
Like you spent a bunch of money opening centers that probably aren't even servicing people,
but somehow dictated success through the promotional
campaigns and now you're going to turn around and try to like repeat that format with what
type of results in the United States.
Like I mean, it's snake oil so of course people are going to buy it.
But yeah, you're right.
What could go wrong here?
What could go wrong?
Well, their first little hiccup.
In 1985, the Craig's casually plop onto the LA fitness scene and open 12 Jenny Craig weight
loss centers all at the same time.
But here's the problem.
Competition in Los Angeles is fierce.
This is LA.
The city is chock full of gyms and weight loss programs.
So they had to figure out how to get people to choose Jenny Craig. And they start by selling frozen meals on site at the fitness centers.
Like, finish your sets and reward yourself with a teeny tiny chicken parm.
Yeah, again, Misha, if I open that package and there's not a healthy size of chicken parm, I'm destroying this room.
So they need to get get creative and what really moves
the needle is their ad campaigns. Do you remember the
jingle?
I'm sure if you played it, we might.
I feel like you're about to remind us.
It was like, let yourself feel how you want to feel. 1-800-94
Jenny.
Yes, 1-800-94 Jenny. Yes.
It rings a bell.
Also, you have the voice of an angel, Misha. Absolutely. At the beginning of this, I was like, I am buying Yes! One 8-putt of
an Angel, Misha. Absolutely. At the beginning of this, I was like, I am buying Jenny Craig.
Yeah, with no warm-up? Are you kidding me? That was wonderful. Feel how I want to feel.
Don't mind if I do. She was a professional singer for years before talking shit on the
internet. Yeah. So the ads, they aren't just memorable for their music,
but also famous faces.
So to find out which celebrities have shilled out
for Jenny Craig over the years, let's play a game.
Okay, here are the rules.
I'm going to ask you some trivia questions
about famous people from Jenny Craig spots
and whoever gets the most correct answer wins.
A teeny tiny chicken parm.
Let's go.
All right, first question.
In terms of digital downloads, this recording artist has arguably the best selling Christmas
single of all time.
Oh, that's Mariah Carey. Is this Mariah Carey, that's Mariah Carey.
Is this Mariah Carey?
Yes, Mariah Carey. No, Mariah.
It was in fact Mariah.
She was a Jenny Craig spokesperson in the early 2010s.
All right, second question.
This member of The View was also a Jenny Craig ambassador.
It's funny because it could be anyone on the view,
not because they're like out of shape or anything,
but I could see any of the women on the view doing this,
but probably Joy Behar.
I don't know how you came to that conclusion,
but you're correct.
And here's a clip of Joy Behar.
Cabbage soup, wheatgrass,
fad diets belong in the garbage,
but I belong in this outfit.
Wow.
It's just a black outfit.
Joy, you could wear that any time.
Yeah, that is very true.
The outfit was like very not shape specific.
No.
And I don't know, cabbage soup.
Was that a fad diet?
Nobody's ever offered me cabbage soup before.
Me either.
No.
I was like, is this a potato famine?
Like, what are we talking about here?
All right.
Third question.
This Jenny Craig spokeswoman was nominated for an Oscar for her supporting role in the
movie musical Chicago.
I didn't know this was going to be, it's funny, as a pop culture guy, I feel like I should know this. And I'm like movie musical, Chicago. I didn't know this was gonna be, it's funny,
as a pop culture guy, I feel like I should know this.
And I'm like, oh, no.
It's not Renee Zellweger.
Is it Catherine Zeta-Jones?
No, it's Queen Latifah.
Oh, yes.
And here's Queen Latifah.
Get a little more active,
and you can really reduce your risk of diabetes
and other health problems.
All right.
Come on, Queen. Whose side are you on, Queen?
All right, we have got one more.
This guy was a former Broadway actor, then sitcom star, yada, yada, yada.
He became a Jenny Craig spokesperson.
Oh, this is George Costanza.
So this is Jason, Jason, Jason, Jason Alexander?
Yes.
Ding, ding, ding.? Yes, ding ding ding.
Okay.
I love this clip.
Take a look, drink it in.
I was fat, now I'm thin.
Whoa.
Oh my God, George, what are you doing, man?
Those tear away khaki pants are something I'd like to buy, but the diet, I can leave.
I feel like I watch those whenever I see the before and after and the stuff they're wearing,
the choices they're making.
I'm always like, it really isn't about the weight, it's really about the choices, the
fashion choices.
When you ran up there in that shirt
and those khakis, somebody should have been like,
maybe we put a jacket on them or something.
I don't know.
Well, by 1991, Jenny Craig is a global phenomenon.
The Craigs are opening four new stores a week,
and Jenny Craig is the sixth largest company in America.
There are over 500 centers in the US,
and over 100 in other countries
like Australia, New Zealand, Canada, the UK and Mexico. Annual revenue closes in on $400
million. How else do you think they can grow a company at this point?
Going after the kids?
Go in public.
Oh yeah, that makes more sense. I'm just saying, when I say go after the kids,
I mean like the child weight loss program to be clear.
Not murder.
I do it.
You're like, I'd like to buzz in with child predation.
I just want to make it clear.
I just want to make it certainly clear.
All right.
Ooh, kidnapping.
Yeah.
No, in 1991, Jenny Craig is listed on the stock market and within one hour, Jenny and
Sid are richer by $73 million.
So Jenny isn't only wealthier than she could have ever imagined, she's the pinnacle of
female success.
She has it all.
She has a husband, kids, a great figure, a private jet, a Mercedes limo.
By the way, the license plate of that limo is Be Thin 2.
Oh no.
This is giving pyramids game.
It's giving multi-level marketing.
It's giving, I could do this, so just go to your downline.
Yeah, I don't like it.
I don't like when people put stuff like that that's like directly connected to
their business as a part of their license plate like I mean it just makes
me want to paintball your car now sometimes early excitement for a company
can lead to a correction by 1993 there are almost 800 centers in existence but
customers complain that the centers seem understaffed and the
quality of service is mediocre. But who cares about the customers? You know, it's much
more important that the investors are unhappy. That super high stock price of $21 a share
loses a third of its value almost immediately.
So Jenny and Sid start hunting for a new CEO, but Sid, who's been the CEO since the company's founding in 1983, will remain as chairman. Their hope is with new management they can reinvent
the brand, make more money, and appease the angry investors all at the same time.
So while they try to put out that fire, the Federal Trade Commission enters the picture that same year.
Oops!
Because now that the company is public, there's more scrutiny.
Amisha, remind me what year this is.
1993.
Okay, so this is Clinton? This is Clinton.
Okay, just curious.
But this is like, this is now a big problem.
The FTC has been going after all of the big diet companies
for a couple of years.
The agency wants the entire weight loss industry
to answer for false claims and advertising.
So that also includes Jenny Craig's old frenemy Nutrisystem
and the new rival Weight Watchers.
Yeah, wow.
This is funny because it feels like foreshadowing
to what's gonna happen in a few years
with the GLP-1 drugs, but...
Uh-huh.
That's just me just talking, like, don't worry about me.
So on top of the sketchy advertising,
the FTC is also concerned
with the long-term health of dieters.
Some dieters are having serious complications
because it turns out if you lose too much weight too quickly,
you can get gallbladder disease
where you start forming gallbladder stones
and might even have to surgically remove the organ.
Instant weight loss, sorry.
They were like, we did it guys, what are you talking about?
This is what you wanted.
Five pounds off.
Do you know what the gallbladder weighs? I put my gallbladder in the garbage We did it guys, what are you talking about? This is what you wanted. Five pounds off.
Do you know what your gallbladder weighs?
I put my gallbladder in the garbage
and now I can wear black any day.
Like while they're in there,
you want to just take the rest of these out?
We can get rid of a lot of this weight.
Just like we can take out your lungs, all that stuff.
Don't even worry about it, you don't need these.
Oh, the amount of people chat GPTing
the average weight of a gallbladder is going to skyrocket.
Wow.
Public service announcement, because we were just talking about it.
Now that more and more folks are taking medications like Ozempic and losing weight really quickly,
they're also at risk for gallbladder disease.
So yeah, the more you know.
Yeah, I was born in 84.
And I'm thinking about from then till now, there's always been a something
that it's like you're going to lose weight.
So if it wasn't Jenny Craig or Weight Watchers, it was the Atkins diet.
And then they renamed the Atkins diet something else in like the ATS.
Do y'all remember it was the all the Crossfitters were doing it.
They called it some Paleo.
They were calling it Paleo at the time.
And now like it's and now with theLP-1 drugs, I'm just like,
y'all don't see the cycle we're on in terms of
the same thing we're trying to do over and over again
that doesn't seem to be working.
So it's just funny to see the cycle happen.
Yeah, it's like fashion.
It's like very like, you know,
now everybody's gotta have a big dad sneaker
and then it's like, oh, now we want really small sneakers.
I don't know.
Maybe it's a bad, it's not my best analogy.
But it is just like a moving target
is more what I'm getting at.
Yeah.
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So to protect their interests,
a bunch of big diet companies,
including Jenny Craig and Nutrisystem,
they form a trade association.
But in 1994, while still fighting the FTC,
Jenny and Sid end up settling
another class action lawsuit for false advertising affecting 360,000 customers who used its service
between 1987 and 1990. Now, the Craigs don't admit any wrongdoing, classic, but they do pay out $10 million in cash to 22,000
customers and weirdly $36 million in merchandise to anyone
else who files a claim.
Okay, what, what, what Jenny Craig, so you're telling me, I
sued y'all and it's like, hey, I'm sorry, I got you a three XL
t shirt. Yeah. And it says Jenny Craig on it. I'm sorry, I got you a 3XL t-shirt. Yeah. And it says Jenny Craig on it.
I'm like, yeah, you're going to promote your business.
I just sued you, but I will promote your business.
Here's a thermos from the people who lied to you.
Also fun fact, most folks don't even cash in their lawsuit merch coupons.
People also, they got those merch coupons and were like, absolutely not. They just threw that in the garbage.
Wow.
So all things considered, this does not hurt Jenny Craig that much. At least not enough for
Jenny and Sid to stop buying planes and race horses with all of their money because, oh yeah,
Sid's always dreamed of winning the Kentucky Derby and their first race horse is named Mr. Devious.
Cute.
Mr. Devious.
Like, this is not an admission of guilt,
but our horse is named Mr. Devious.
So the company's profits, they do continue to soar
with revenues reaching over $400 million in 1994 alone.
So she's doing okay.
But just when Jenny's on top of the world, her health takes a dive.
This is crazy.
In April of 1995, Jenny falls asleep on the couch with her chin resting on her chest.
And suddenly she's startled by a noise and she jerks her head up.
It's the TV.
She's safe, but something else is wrong. Her lower jaw hasn't
snapped into place and it's stuck over her upper jaw and she can't open her mouth. She can't talk.
She doesn't know what the hell is happening. And so she has to try to pry her teeth apart.
So this terrifying event doesn't just leave Jenny an incredible pain, it requires years of rehab and surgery to fix it.
So suddenly she's no longer able to be the perfect
spokeswoman for her own company,
and it ends up being like this weird ominous sign
of what's to come.
That's awful.
Did they find out what the condition was or what was it?
I don't know.
I don't like when there's not names
for things that terrify me.
It's like, I need to know if this can or would happen to me.
And now you've just unlocked a new fear in me for it.
I'm like, I don't even know what this is.
Like if they call the name Bell's palsy, at least if you wake up with half your face paralyzed,
you're like, there's a thing that this is.
But you just explained something to me.
We don't know what happened.
No, this is like a whole, it's like a separate, it's like Jenny Craig syndrome.
Like you do this diet and then your lower face tries to eat your upper face.
Cause it's hungry.
It's hungry.
Well, in the aftermath of her alarming jaw problem, Jenny officially steps down as the
spokeswoman for her brand.
But besides health issues, they've got a big problem.
In 1996, a magic weight loss potion blows up the dieting market
and nearly destroys Jenny Craig the company.
So it's called FenFen.
Yes!
Yes!
I should have known.
Now, FenFen is actually two drugs prescribed together,
one of which suppresses your appetite
and causes drowsiness,
the other of which is a stimulant
and can cause increased heart rate,
nervousness, insomnia, and constipation.
Fun.
I love that one of the drugs is just be like,
you're not hungry, go to sleep.
And then the other one's like,
but you're gonna be awake.
Yeah, exactly.
But maybe you should hit that treadmill as hard as you can. Nutrisystem, Jenny Craig's mortal enemy,
goes all in on FenFen. And Jenny Craig's customers start to jump ship to try the miracle drug.
And after a few months of sinking profits, Jenny Craig succumbs to the pressure and hires a bunch of doctors
to sell the pills to its customers.
And all it takes is a 10 minute consultation
and folks can leave the weight loss centers
with their beach body in a bottle.
Misha, this is okay.
Again, not a joke.
This is literally what Noom is doing
with Ozempic and GLP-1 drugs right now.
Like, all of a sudden you're getting advertisements from Noom that are like,
hey, also you can get this shot of Wagovi up in you and we'll help with the other.
I'm like, if they're joining forces with the pharmaceuticals,
it's like the, I don't know, it's always like the sick sign of the apocalypse or whatever, man.
Like, it's almost over.
You know? like the, I don't know, it's always like the sixth sign of the apocalypse or whatever, man. Like it's almost over.
So thanks to FenFen, business for Jenny booms once again, and the entire weight loss industry
gets its mojo back, generating close to $2 billion in sales in 1997. Weight Watchers
gets on the right side of dieting history, exercising, see what I did there? Unusual
restraint for a big corporation
and refusing to prescribe pills.
Yeah.
Meanwhile, Jenny and Sid's arch nemesis
over at Nutrisystem, according to one of its doctors,
stops ordering blood tests for customers
before giving them FenFen.
Not great.
Whoa.
They also offer two months of FenFen for free
for customers switching from Jenny Craig. Rude.
Now, in May of 1997, the years-long battle
between Jenny Craig and the Federal Trade Commission
culminates in a huge settlement to be more honest.
Jenny Craig signs a consent agreement
to be more truthful in advertising.
Any claims the company makes needed to be backed by actual customer experience.
Can you even?
And taglines like, quote, for many dieters, weight loss is temporary, must be included in the ads.
Also, prices needed to be more transparent.
Like a lot of promotions like,
lose all the weight you can for just X amount of dollars
have never included all of the extras
like the cost of food and now they must.
Wow. Oh, that's right.
Cause I remember those ads, like I want to say,
say the year again, Misha.
1997.
Okay. I was going to say around 2000.
I remember hearing those ads and hearing them always saying for X amount, they'd be like
for $99, you can lose 99 pounds plus the cost of food.
They'd say it like that all of a sudden.
And I'd be like, I remember in my ear being like, what do you mean?
How much is the food?
Yeah, burying the lead a little bit like and where does the $99 go then?
Is it just it's to open more centers?
Like...
Yeah, I don't know if this is like a fair settlement though.
Like you just, you just got to be a little bit more transparent
given the fact that they're peddling drugs.
Yeah, you became a big pharma all of a sudden.
Like, what are we talking about here?
Well, back to FenFen.
By 1997, six million people have happily taken it to slim down.
Can you guess what happens next?
People start dying.
Basically, in July of that year, the Mayo Clinic reports that FenFen can destroy your
heart valves. Jenny Craig stops prescribing the deadly combo, but Nutrisystem, they lag behind.
Oh, Nutrisystem.
But then the FDA outright bans it in September of 1997.
So, sorry, FenFen, the party's over.
As it should be.
But because millions of people have taken FenFen,
thousands end up with serious heart and lung damage.
It's so sad.
It lends itself to the same thing.
Like if you prey on people's desperation to change, like this is what you end up with.
You know what I mean?
These things, like as soon as they figure out that it makes you lose weight, they start
like pushing them so hard and we don't know the like who's going to be the first person
that's like, oh my God, my heart valves.
Like after all this wagovi.
Like I don like, Oh,
I'm sorry that it feels like we just turned this into a very special episode
of the big flop.
It's like, gather your family for this episode of the big flop.
We have something to tell you.
Yeah. Can we all sit around? This is a cautionary tale everybody.
Yeah.
So by the end of the year, sales numbers aren't great. And
Jenny Craig's revenues dropped to $365 million with a net income of only about $8 million.
So desperate, Sid and Jenny try to launch a new program called ABC, where dieters no
longer count calories but use a food group system. They launched two new products, a line of supplements and Jenny Craig branded
exercise equipment. And they know exactly how to market
these new offerings. A kick ass new brand ambassador. So can you
guess who I'm talking about? Like who would be the boldest
choice for a spokesperson in the late
1990s? It was Oprah, right?
Wasn't Oprah.
Jenny Craig, boldest choice.
She was the center of a very big scandal.
Not Monica Lewinsky.
Let's play a clip.
Okay.
It's a great program for someone who not only wants to lose weight, but who's looking to change their life.
Oh my god, he is!
Oh wow!
No!
Whoa!
No!
No!
Why don't I remember this?
Oh!
Misha, that was such a good setup!
I know!
That was a good guess too!
That's like...
But, I mean, it felt like he drew me into his web. I know. And that was a good guess too. That's like.
But it felt like he drew me into his web.
And I was just like that could be Monica Lewinsky.
He's like, well, since you said it.
Wow.
What a bold choice.
Absolutely.
And I like absolutely love the evolution of Monica Lewinsky, especially to today.
But that's a wild usage of her.
And like when it's like still very precious
in people's minds.
Wow, what a choice.
But back then it was a big swing
and it was ultimately a miss.
After a brief rally, the Jenny Craig stock tumbles once again
and Jenny and Sid blame the fail on Monica.
But the fact is this has been a long time coming. Okay? But the true rock bottom
is still to come. By 2000, the company seems like it's really in trouble. The stock price is
practically nothing. It's only worth about $3.75 a share. And the investors are desperate for a
buyer to bail them out. So Jenny and Sid, own two-thirds of the company, but they think
they might be able to save the brand if they shell out a cool $25 million to buy up the
rest of it. Not a bad idea if you've got 25 mil laying around. But it doesn't work
out and pretty soon the company is yanked from the stock exchange. So it may be worth a fraction of what it once was, but in 2002, Jenny Craig is sold to an
investment firm for over $100 million and Jenny and Sid get to pocket most of that change.
After four decades of managing Jenny Craig, it's finally time for Jenny and Sid to retire,
write some memoirs and buy a few more
racehorses. So how do we feel about Jenny? Girl boss or evil doer? It's a thin line. Yeah, it's,
okay, so if you think about capitalism, and you think about like what every man does, like every
man CEO does, like this is not unusual.
I mean, of course I think it's disgusting
because of like what it does to fat folks
and to body image and all that,
but this is not an unusual American story
in terms of like people selling snake oil
or doing business methods in order to like
make themselves very wealthy
and then end with a golden parachute.
Like, like this, we work, did the same thing.
Like, what are we talking about here?
You know?
Well, let's do a little, where are they now?
Since the early 2000s, Jenny Craig, the company
has changed hands a couple of times.
Nestle owned it for a hot minute.
Then some investment firms, then Walgreens.
In 2023, the Jenny Craig Inc. filed for bankruptcy and its assets were sold off to something called Wellful Inc. who owns, wait for it, Nutrisystem.
Whoa.
The long con.
So, Sid, like I said, he passed away in 2008, but Jenny herself is still alive. At 92 years young, she's not really in the public eye
that much, but in a 2019 interview,
she still advocated for basically the same stuff
as always, portion control and light exercise.
The dieting world has had a few major shifts
in recent years, first with apps like Noom
that market to younger generations
and then some of gluteid
medications like Ozempic. There have also been cultural shifts related to body positivity that
made marketing weight loss pretty tricky, especially for stalwarts like Weight Watchers.
Weight Watchers even rebranded to WW to distance itself from body shaming and to lean into holistic health.
But that actually didn't work out for them.
People who sought out Weight Watchers,
they want to lose weight.
So Weight Watchers finally gave in
and started prescribing the newest weight loss drugs as well.
Like we've said, with years of case studies ahead of us,
we will see how that
all pans out.
A future flop may haps.
Hopefully not for the sake of people who are taking them.
So here on The Big Flop, we try to be positive people and end on a high.
So are there any silver linings that you can think of that came about from Jenny Craig
and the Jenny Craig company. What?
Silver linings.
What?
We try.
We got to try.
What?
I don't know.
Maybe we've, I think we've learned something since then.
Maybe.
Emmy, help me.
I don't know.
I, uh, I'm happy that Jason Alexander, uh, is here.
I'm happy that Jason Alexander is here.
I'm happy that Jason Alexander is here. I don't know, maybe we've, I think we've learned something since then, maybe. Emmy, help me, I don't know.
I, I'm happy that Jason Alexander
He got paid.
got a little extra cash on the side of Seinfeld
because that show may not cover all the bills.
No.
For me, the only silver lining like I think is that Weight Watchers didn't
make every despicable choice along the way.
They didn't get into FenFen.
Yeah, there's something about Weight Watchers, even though I know a lot of
people that had a lot of damage from Weight Watchers, hearing that there's
certain things that they were just like, we're not going to do that,
tells me that there was somebody saying like,
yeah, maybe you can stand to lose some weight,
or yeah, we want y'all to lose weight,
but we don't want you to hurt yourselves,
which is, I'm like, that is remarkably restrained
for a business to do.
And for such a business in such a toxic environment.
Yeah.
Yeah, the bar is so low.
The bar is low. You're right.
Yeah.
Yeah.
Well, now that you both know about Jenny Craig,
would you consider this a baby flop, a big flop,
or a mega flop?
This seems like a century spanning mega flop.
Megaflopolis.
Like, get it?
Yeah.
Like, yeah. Especially because it's a big flop in part of an even bigger industry.
Like I think this is what I'd consider this a mega flop, especially when you think about
how much we were hearing about Jenny Craig in the nineties and two thousands to say like
now we don't hear about them at all, but now it's morphed into something different.
I'm like, this is a mega flop that we're probably going to see continue to flop in the future.
So like a flop with ritual in flop, in flopception.
I don't know.
Russian nesting flop.
Yes.
Russian nesting flop.
Even better.
Yes.
Well, thank you so much to our amazing guests, Ronald Young Jr.
and Emmy Blotnick for joining us here on The Big Flop.
And of course, thanks to all of you for listening and watching.
If you're enjoying the show, please leave us a rating and review or subscribe.
We'll be back next week with another flop.
New York City is known for many things.
Broadway, bagels, Central Park.
But what about con men?
We're talking about how one of the greatest cities
in the world is also home to one of the greatest con men,
Bernie Madoff.
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Bye.
Oh, bye.
See you.
He's just not talking to us.
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Theme song is Sinking Ship by Kick. Executive producers are Lizzie Bassett,
Dave Easton, and Marshall Louie for Wondering. Music Last year, long crime brought you the trial that captivated the nation.
She's accused of hitting her boyfriend, Boston police officer John O'Keefe with her car.
Karen Reed is arrested and charged with second degree murder.
The six week trial resulted in anything but resolution.
We continue to find ourselves at an impasse. I'm declaring a mistrial in this case.
But now the case is back in the spotlight.
And one question still lingers.
Did Karen Reed kill John O'Keefe?
The evidence is overwhelming that Karen Reed is innocent.
How does it feel to be a cop killer, Karen?
I'm Kristin Thorn, investigative reporter with Law & Crime
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