BizJournals Portfolio
Jun 30 2008 12:00am EDT

Economy Shrinks, Waistlines Expand

The United States is already suffering from high incidences of obesity. Will a recession just add on the pounds?

It seems so.

With food costing more and people cutting out nonessential services--such as dieting programs--America will likely see some extra poundage on the scale.

After all, it has been well documented that there's a correlation between income and obesity, considering the affordability of fast food, fizzy drinks, and potato chips.

Some fast food chains have reported growth in sales. Sales at McDonald's open at least a year increased 7 percent between January and May, compared with 6 percent during the same period last year.

Burger King saw its all-time high in average restaurant sales of $1.27 million from February 2007 to March 2008. Still, Wendy's first-quarter revenue slipped.

Besides fast food, the relatively cheaper prices of processed goodies will tempt Americans away from fresh food, says the New York Sun.

The nation's diet-plan consumers may be trying new--and possibly less effective--tactics. Weight-loss programs, such as Jenny Craig and Weight Watchers, are projected to see a decline in sales, according to Advertising Age.

Michael Binetti, a UBS analyst, lowered the earnings-per-share marker for Weigh Watchers, because "20 percent of Americans who describe themselves as being on a weight-loss regimen have increasingly been reporting that they are "on their own diet."

This doesn't seem soothing for our nation's weight index, since one could assume that people who participate in programs like Weight Watchers do so because they find it difficult to stick to a diet on their own.

Then again, John LaRosa told Advertising Age that dieters who opt out of more costly programs "will shift toward less expensive do-it-yourself methods" like the latest diet book, diet pills, supplements, or join a free online program.

Jennifer Lai


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