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UNITING THE WORLD OF FITNESS
Health Club Management

Health Club Management

features

Editor's letter: Mega players

Having a portfolio of more than 1,000 health club locations is the aim of ambitious operators, with this elite category growing fast, creating new dynamics in the market

Published in Health Club Management 2022 issue 4
Anytime Fitness has around 4,000 locations globally / photo: Anytime Fitness
Anytime Fitness has around 4,000 locations globally / photo: Anytime Fitness
At this scale, brands become their own ‘vortex’, able to sell an increasingly broad range of services to members

As the industry grows and more operators achieve global ‘mega player’ status – deemed to be in excess of 1,000 locations – the saturation of the market is increasing and we’re entering a new phase of accelerating aggregation and churn.

At the moment, the biggest players include companies such as Planet Fitness with 2,291 locations, Basic-Fit with 1,097, RSG with 1,000, Xponential with 2,100, Anytime Fitness with more than 5,000, Snap Fitness with 2,000 and F45 with 1,750.

At this kind of scale, brands become their own ‘vortex’, able to sell an increasingly broad range of services to customers and offering cross-portfolio access, such as that afforded by Xponential’s recently-launched X-Pass.

This ‘all locations’ offering is for customers who want to use locations from across the company’s entire estate – which currently has 10 brands covering everything from rowing, yoga, lifting, running and cycling to barre, stretching, boxing and Pilates.

By operating across so many wellness sectors, Xponential is able to keep its members within its own universe for most if not all of their fitness needs, through the X-Pass programme.

In addition to enabling brands to effectively aggregate their own estates – instead of using an external service, such as Classpass – this kind of scale also enables them to create operating clusters to drive economies of scale and improve market visibility, staff training and career opportunities.

As mega players emerge there’s also an accelerating churn in relation to real estate, as market forces determine which brands thrive best in which locations. A steady stream of sites is now changing hands as operators work to optimise locations.

We’re seeing deals whereby one brand is taking over locations previously run by another and they’re thriving under new ownership where they’d previously failed.

In our interview on page 34, industry veteran, Dave Courteen addresses this issue, saying: “Operators must be very clear in their messaging, so people find their way to a club they’re likely to stick with – be clear in who you’re targeting – try not to be all things to all people. Provided we’re clear in our messaging, I believe we can be successful at keeping people engaged with our clubs.”

The final piece of this jigsaw puzzle is input from entrepreneurs who are building businesses to sell to mega player brands. We’re seeing start-ups aligning new health clubs with the systems and processes that will enable them to achieve a profitable exit by selling out to a specific operator as investment continues to flow into the sector.

Liz Terry, HCM editor
[email protected]
@elizterry
https://www.leisureopportunities.co.uk/images/2022/588080_791660.jpg
Can one operator succeed where another has failed? asks Liz Terry
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Latest News
The Leisure Database Company (TLDB) has revealed its State of the Fitness Industry Report UK ...
Latest News
The Gym Group’s (TGG) plans and profit forecasts were presented to analysts and investors during ...
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A new physical activity programme called Big Sister has been launched in the UK to ...
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A young girl has died following an incident at the David Lloyd gym at Capability ...
Featured supplier news
Featured supplier news: Thousands flock to register for Elevate 2022 in London this summer
The health and fitness industry is eagerly awaiting the return of Elevate, which will take place on 15-16 June 2022 at ExCeL London.
Featured supplier news
Featured supplier news: Virtuagym raises €3m investment to fuel innovation in health and fitness technology
Global fitness technology provider Virtuagym has raised a new €3m investment from Icecat, an Amsterdam-based technology company which invests in innovative technology organisations.
Featured operator news
Featured operator news: Serco Leisure wins 10-year Mansfield contract
Following a competitive tendering process, Serco Leisure and its partner More Leisure Community Trust Limited (MLCT) have been awarded a 10-year contract by Mansfield District Council to operate three centres in the town, starting 1 May 2022.
Featured operator news
Featured operator news: Everyone Active to launch new exercise classes to reduce gender gap
As part of their work to break down the barriers that deter women and girls from participating in sport and physical activity, Everyone Active has teamed up with EMD UK to launch new exercise classes linked to the This Girl Can campaign.
Company profiles
Company profile: Mindbody
Mindbody is the leading technology platform for the wellness industry, featuring an app that allows ...
Company profiles
Company profile: TRIB3 International Ltd
First established in Sheffield in January 2016 TRIB3 is a bootcamp boutique studio designed to ...
Supplier Showcases
Supplier showcase - Pulse Fitness: trusted partner
Catalogue Gallery
Click on a catalogue to view it online
Directory
Architects/designers
Zynk Design Consultants: Architects/designers
On demand
Fitness On Demand: On demand
Spa software
SpaBooker: Spa software
Salt therapy products
Saltability: Salt therapy products
Wearable technology solutions
MyZone: Wearable technology solutions
Lockers/interior design
Crown Sports Lockers: Lockers/interior design
Management software
Premier Software Solutions: Management software
Fitness equipment
A Panatta Sport Srl: Fitness equipment
trade associations
International SPA Association - iSPA: trade associations
Whole body cryotherapy
Zimmer MedizinSysteme GmbH / icelab: Whole body cryotherapy
Property & Tenders
Pendine Sands, Carmarthenshire
Carmarthenshire County Council
Property & Tenders
Runcorn
Halton Borough Council
Property & Tenders
Diary dates
15-16 Jun 2022
ExCeL London, London, United Kingdom
Diary dates
30-30 Jun 2022
The ICC, Birmingham, Birmingham , United Kingdom
Diary dates
12-13 Sep 2022
Wyndham Lake Buena Vista Disney Springs® Resort, Lake Buena Vista, United States
Diary dates
25-28 Oct 2022
Messe Stuttgart, Germany
Diary dates
25-28 Oct 2022
Ibiza, Ibiza, Spain
Diary dates
01-07 Dec 2022
tbc, Dunedin, New Zealand
Diary dates
17-18 Mar 2023
Tobacco Dock, London, United Kingdom
Diary dates

features

Editor's letter: Mega players

Having a portfolio of more than 1,000 health club locations is the aim of ambitious operators, with this elite category growing fast, creating new dynamics in the market

Published in Health Club Management 2022 issue 4
Anytime Fitness has around 4,000 locations globally / photo: Anytime Fitness
Anytime Fitness has around 4,000 locations globally / photo: Anytime Fitness
At this scale, brands become their own ‘vortex’, able to sell an increasingly broad range of services to members

As the industry grows and more operators achieve global ‘mega player’ status – deemed to be in excess of 1,000 locations – the saturation of the market is increasing and we’re entering a new phase of accelerating aggregation and churn.

At the moment, the biggest players include companies such as Planet Fitness with 2,291 locations, Basic-Fit with 1,097, RSG with 1,000, Xponential with 2,100, Anytime Fitness with more than 5,000, Snap Fitness with 2,000 and F45 with 1,750.

At this kind of scale, brands become their own ‘vortex’, able to sell an increasingly broad range of services to customers and offering cross-portfolio access, such as that afforded by Xponential’s recently-launched X-Pass.

This ‘all locations’ offering is for customers who want to use locations from across the company’s entire estate – which currently has 10 brands covering everything from rowing, yoga, lifting, running and cycling to barre, stretching, boxing and Pilates.

By operating across so many wellness sectors, Xponential is able to keep its members within its own universe for most if not all of their fitness needs, through the X-Pass programme.

In addition to enabling brands to effectively aggregate their own estates – instead of using an external service, such as Classpass – this kind of scale also enables them to create operating clusters to drive economies of scale and improve market visibility, staff training and career opportunities.

As mega players emerge there’s also an accelerating churn in relation to real estate, as market forces determine which brands thrive best in which locations. A steady stream of sites is now changing hands as operators work to optimise locations.

We’re seeing deals whereby one brand is taking over locations previously run by another and they’re thriving under new ownership where they’d previously failed.

In our interview on page 34, industry veteran, Dave Courteen addresses this issue, saying: “Operators must be very clear in their messaging, so people find their way to a club they’re likely to stick with – be clear in who you’re targeting – try not to be all things to all people. Provided we’re clear in our messaging, I believe we can be successful at keeping people engaged with our clubs.”

The final piece of this jigsaw puzzle is input from entrepreneurs who are building businesses to sell to mega player brands. We’re seeing start-ups aligning new health clubs with the systems and processes that will enable them to achieve a profitable exit by selling out to a specific operator as investment continues to flow into the sector.

Liz Terry, HCM editor
[email protected]
@elizterry
https://www.leisureopportunities.co.uk/images/2022/588080_791660.jpg
Can one operator succeed where another has failed? asks Liz Terry
Latest News
The Leisure Database Company (TLDB) has revealed its State of the Fitness Industry Report UK ...
Latest News
The Gym Group’s (TGG) plans and profit forecasts were presented to analysts and investors during ...
Latest News
A new physical activity programme called Big Sister has been launched in the UK to ...
Latest News
Go Fit has been selected by the United Nations Economic Commission for Europe (UNECE) as ...
Latest News
Ness, a US startup that is developing a range of wellness-driven credit cards, has launched ...
Latest News
Following a history of supporting US military and service members, F45 has announced a new ...
Latest News
Hyatt is piloting private gyms in five of its US hotels as part of its ...
Latest News
A young girl has died following an incident at the David Lloyd gym at Capability ...
Latest News
New fitness franchise, Circuit Society, has signed its first London location in Bayswater. The 3,000sq ...
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Active Nottingham, part of Nottingham City Council, has released a children’s book called Can We ...
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The new £42m Moorways Sports Village will open its doors to the public on Saturday ...
Featured supplier news
Featured supplier news: Thousands flock to register for Elevate 2022 in London this summer
The health and fitness industry is eagerly awaiting the return of Elevate, which will take place on 15-16 June 2022 at ExCeL London.
Featured supplier news
Featured supplier news: Virtuagym raises €3m investment to fuel innovation in health and fitness technology
Global fitness technology provider Virtuagym has raised a new €3m investment from Icecat, an Amsterdam-based technology company which invests in innovative technology organisations.
Featured operator news
Featured operator news: Serco Leisure wins 10-year Mansfield contract
Following a competitive tendering process, Serco Leisure and its partner More Leisure Community Trust Limited (MLCT) have been awarded a 10-year contract by Mansfield District Council to operate three centres in the town, starting 1 May 2022.
Featured operator news
Featured operator news: Everyone Active to launch new exercise classes to reduce gender gap
As part of their work to break down the barriers that deter women and girls from participating in sport and physical activity, Everyone Active has teamed up with EMD UK to launch new exercise classes linked to the This Girl Can campaign.
Company profiles
Company profile: Mindbody
Mindbody is the leading technology platform for the wellness industry, featuring an app that allows ...
Company profiles
Company profile: TRIB3 International Ltd
First established in Sheffield in January 2016 TRIB3 is a bootcamp boutique studio designed to ...
Supplier Showcases
Supplier showcase - Pulse Fitness: trusted partner
Catalogue Gallery
Click on a catalogue to view it online
Directory
Architects/designers
Zynk Design Consultants: Architects/designers
On demand
Fitness On Demand: On demand
Spa software
SpaBooker: Spa software
Salt therapy products
Saltability: Salt therapy products
Wearable technology solutions
MyZone: Wearable technology solutions
Lockers/interior design
Crown Sports Lockers: Lockers/interior design
Management software
Premier Software Solutions: Management software
Fitness equipment
A Panatta Sport Srl: Fitness equipment
trade associations
International SPA Association - iSPA: trade associations
Whole body cryotherapy
Zimmer MedizinSysteme GmbH / icelab: Whole body cryotherapy
Property & Tenders
Pendine Sands, Carmarthenshire
Carmarthenshire County Council
Property & Tenders
Runcorn
Halton Borough Council
Property & Tenders
Diary dates
15-16 Jun 2022
ExCeL London, London, United Kingdom
Diary dates
30-30 Jun 2022
The ICC, Birmingham, Birmingham , United Kingdom
Diary dates
12-13 Sep 2022
Wyndham Lake Buena Vista Disney Springs® Resort, Lake Buena Vista, United States
Diary dates
25-28 Oct 2022
Messe Stuttgart, Germany
Diary dates
25-28 Oct 2022
Ibiza, Ibiza, Spain
Diary dates
01-07 Dec 2022
tbc, Dunedin, New Zealand
Diary dates
17-18 Mar 2023
Tobacco Dock, London, United Kingdom
Diary dates
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