Slow Burn: Decoder Ring | How “Chicken Soup” Sold Its Soul

Episode Overview

In this compelling episode of Slow Burn’s "Decoder Ring" series, journalist Amanda Chicago Lewis delves deep into the extraordinary rise and tumultuous fall of the Chicken Soup for the Soul franchise. From its humble beginnings as a motivational book series to its ambitious yet ill-fated ventures into entertainment and streaming, the story uncovers the intricate web of ambition, belief, and corporate mismanagement that ultimately led to the brand's decline.

Origins: The Birth of Chicken Soup for the Soul

The Chicken Soup for the Soul phenomenon began in 1993, the brainchild of Jack Canfield and Mark Victor Hansen, two charismatic motivational speakers with a flair for sales. Their initial goal was to compile 101 uplifting stories that exemplified kindness, courage, and perseverance. As Amanda Chicago Lewis recounts:

Amanda Chicago Lewis (04:14): "The two selected their 101 stories, polished them, and assembled them in a book. They even had the title."

Jack Canfield, often described as the "calm hippie guru," and Mark Victor Hansen, the energetic "salesman," complemented each other perfectly. Their synergy was evident when Hansen stated:

Mark Victor Hansen (15:25): "Jack is an educator and I'm a business guy. And so we synchronized on what our skills were."

Despite initial rejections from mainstream publishers, the duo funded the production of 20,000 copies themselves. Their innovative sales tactics—selling books in unconventional venues like bakeries and mortuaries, and leveraging word-of-mouth marketing—quickly turned Chicken Soup for the Soul into a bestseller.

Philosophy and Popularity: The Law of Attraction

At the heart of Chicken Soup for the Soul was the Law of Attraction, a belief system that posits one's thoughts can shape their reality. Canfield and Hansen infused this philosophy subtly into their stories, promoting a message of personal responsibility and positive thinking. Amanda reflects on the underpinning ideology:

Amanda Chicago Lewis (11:10): "It's demoralizing and empowering at the same time. And it's a very extreme view of individual agency."

For instance, stories often portrayed characters overcoming adversity through sheer willpower and positivity, implicitly suggesting that individuals are solely responsible for their successes and failures. This message resonated deeply with readers, especially teenagers seeking guidance and inspiration.

Expansion and Brand Extensions

The overwhelming success of the original book led to a proliferation of sequels and themed editions, catering to various demographics and interests:

• A Second Helping of Chicken Soup for the Soul
• Chicken Soup for the Child's Soul
• Chicken Soup for the Pet Lover's Soul

By 2003, the franchise was releasing up to five titles a month, expanding into merchandise like calendars, mugs, and even pet food. Amanda notes the aggressive and opportunistic expansion strategy:

Amanda Chicago Lewis (24:16): "They got a lot of... they were selling Chicken Soup for the Soul calendars and they were selling Chicken Soup for the Soul mugs..."

However, critics dismissed the content as "treacly hokum," arguing that while the stories were heartwarming, they often ignored deeper societal issues, implying that personal effort alone could overcome systemic challenges.

The Great Exit: Selling the Empire

In 2008, Canfield and Hansen sold Chicken Soup for the Soul to telecom CEO Bill Ruhana and his wife, Amy Newmark, for $63 million. This marked a significant shift from the brand’s original ethos to a more corporate-driven entity:

Willa Paskin (33:44): "It kind of went from being a like hippie, dippy Southern California feel the vibrations self-help thing to like a shiny financial object."

Under new ownership, the company aggressively pursued licensing deals, expanding its portfolio to include puzzles, beauty products, and even pasta sauce. However, these ventures largely failed to capture the original magic, leading to the eventual decline of the brand's prominence.

Ambitious Ventures and Corporate Missteps

In an attempt to resurrect the brand's popularity, Chicken Soup for the Soul Entertainment embarked on several high-profile acquisitions, including the controversial purchase of Redbox Entertainment in 2022 for $30 million. This move aimed to diversify into the streaming market by acquiring platforms like Crackle. However, the acquisition proved disastrous:

1. Acquisition of Redbox: Intended to capitalize on nostalgia and expand into digital streaming, the merger saddled the company with overwhelming debt.

2. Meme Stock Craze: Inspired by the GameStop short squeeze, retail investors rallied around Redbox, hoping to replicate the success. Despite their efforts, the stock plummeted, exacerbating the company's financial woes.

3. Bankruptcy and Liquidation: By early 2024, Chicken Soup for the Soul Entertainment faced bankruptcy, burdened with nearly $1 billion in debt. Legal actions revealed allegations of mismanagement and misuse of company assets by Ruhana and Newmark:

   Willa Paskin (44:55): "A lawsuit... alleges that Ruhana in particular used the company's assets as his personal piggy bank and describes mismanagement..."

The company’s assets were liquidated, leading to the shutdown of 24,000 Redbox kiosks nationwide. The final blow came with the delisting from Nasdaq and the ultimate bankruptcy filing, marking a grim end to what was once a beloved brand.

Legacy and Continuing Presence

Despite the collapse of its entertainment arm, Chicken Soup for the Soul persists in its original niches—publishing books and selling pet food. The brand maintains a nostalgic presence, occasionally resurfacing through new ventures like the Chicken Soup for the Soul podcast hosted by Amy Newmark. However, the golden era of its inspirational influence has long passed, overshadowed by corporate failures and a tarnished reputation.

Amanda Chicago Lewis aptly summarizes the saga:

Amanda Chicago Lewis (44:43): "The brand was so successful that they were able to milk it until there was like nothing left and the only thing left was like the idea and the memory and the nostalgia for the thing."

Conclusion: A Cautionary Tale

The rise and fall of Chicken Soup for the Soul serves as a cautionary tale about the perils of overexpansion and the dangers of straying from core values. While the original message of positivity and personal empowerment resonated with millions, the relentless pursuit of growth without sustainable strategies led to the company's downfall. The episode underscores the delicate balance between maintaining brand integrity and pursuing ambitious business ventures.

As Amanda concludes:

Amanda Chicago Lewis (47:14): "Pretend you're happy when you're blue."

This ironic twist highlights the ultimate failure of the brand to sustain its foundational principles amidst corporate greed and mismanagement.

Notable Quotes:

• Amanda Chicago Lewis (04:14): "I was like, maybe I have to write about this. Like this is so weird."
• Mark Victor Hansen (15:25): "Jack is an educator and I'm a business guy. And so we synchronized on what our skills were."
• Jack Canfield (10:08): "When you are vibrating at the level of 100% expectancy that you're going to get something, it's already a done deal."
• Amanda Chicago Lewis (26:33): "These are stories that are telling you there is no such thing as structural racism."
• Jack Canfield (27:48): "When you were a kid, your grandmother gave you chicken soup when you were sick."

Key Takeaways:

• Foundational Beliefs: The franchise's success was deeply rooted in the Law of Attraction and the promotion of personal responsibility.
• Aggressive Expansion: While initial expansions were successful, later ventures into diverse product lines and entertainment lacked cohesion and failed to resonate.
• Corporate Mismanagement: The acquisition of Redbox and subsequent financial missteps highlight the risks of overreaching without proper management.
• Enduring Legacy: Despite corporate failures, the original books remain a cultural staple, symbolizing both the power and limitations of self-help ideologies.

This episode of Slow Burn's "Decoder Ring" masterfully unravels the complex narrative of Chicken Soup for the Soul, offering listeners a nuanced perspective on how a beloved brand can both inspire and falter when ambition overshadows foundational values.