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Metrics of the “Average” Commercial Weight Loss Center

Feb. 26, 2021

Where does one get details about commercial weight loss centers -- how much revenues they gross per year, their profits, their payroll, their characteristics, how many of them operate in the country? There ARE a few sources, in the absence of a national trade association for the industry.

One can obtain the FDD (franchise disclosure document) filed by weight loss companies that actively sell franchises. The major competitors like WW and Jenny Craig aren't selling now, so you have to find smaller regional chains that are, and purchase their latest FDD. Or, one can look at the data compiled by the Bureau of the Census, Census of Service Industries, done every 5 years, under the NAICS code 812191. It's free. The last survey was in 2017 and various statistics are available. The Census surveyed commercial weight loss centers, not medical programs. That's one of the sources we at Marketdata used.

Marketdata is now updating its biennial report: "The U.S. Weight Loss & Diet Control Market", and is releasing certain findings as we progress through our research.

Here are a few key metrics we have found:

  • The "average" commercial weight loss center had 2017 revenues of $597,000 per year. Marketdata has updated this to 2020, for a figure of $549,000, based on market conditions from 2017 to 2020. Some centers gross a lot more, depending on their location.
  • The typical center has 8.5 employees.
  • The average annual payroll per employee was $17,517, and each employee generated $70,443 in sales.
  • The typical diet center spent 25% of each sales dollar on payroll.
  • The top 4 states in regard to number of commercial weight loss centers were: California with 331, Florida with 270, Texas with 246, and New York with 175.
  • 21% of these centers were operated on a part-time basis.
  • Marketdata estimates that the average center has a 14 % profit margin, or profits of $76,300 per year.
  • The average weight control service (company, not center) that was a corporation had $543,282 in yearly receipts, vs. $224,387 for a sole proprietorship and $693,000 for partnerships.
  • The average center spends 20% of each sales dollar on marketing, amounting to about $110,000 per year.

The above is a sample of the type of hard to find weight loss industry information contained in Marketdata's weight loss reports -- the ONLY place you will find it. Marketdata LLC, Tampa, FL (813-971-8080). www.marketdataenterprises.com.

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