Building a thriving boutique fitness studio is a tough task. Nowhere is that truer than in New York City, where intense competition, high turnover and cost pressures drive many studios out of business in just a few years. 

Noam Tamir, founder of TS Fitness in Manhattan’s Upper East Side, has cracked the code on how to find long-lasting success as a boutique fitness owner in the Big Apple. 

A former Crunch Fitness personal trainer, Tamir established TS Fitness (an acronym for “together stronger”) back in 2011, growing it into a mainstay of Manhattan’s boutique fitness scene with around 160 members.

TS Fitness offers one-on-one personal training and group fitness classes, but the core of its business is “semi-private personal training,” small group sessions that combine the individualized attention of personal training with the community-building camaraderie of a typical large group fitness class.

Athletech News spoke with Tamir about his approach to building a fitness business that lasts, the advantages of semi-private training, and why TS Fitness has been able to resonate with clients for over a decade.

This conversation has been lightly edited for clarity and length. 

Athletech News: Can you tell us about yourself and why you decided to create TS Fitness?

Noam Tamir: I was born into a family that valued community. We were very close and traveled a lot, staying in hotels and eating at different restaurants, so I grew to admire good service. I also grew up with a very athletic father who was an incredible soccer player. He got me into sports at an early age and didn’t let me quit. I eventually excelled at soccer and was a track runner, which is how I fell in love with weight training. I started weight training when I was about 14 years old in my friend’s basement. Not only did it help me with sports, but it helped me build confidence. 

I thought I was going to go into the hotel business, but once I realized the hospitality business meant working weekends and holidays, I decided to explore fitness. While I was getting my master’s degree at NYU, I became a personal trainer to earn some money between classes. I started part-time at my local Crunch Fitness, working my way up to Personal Training Manager. I did that for about five years, but wanted to go out on my own

I started my own private training business, basically running around all four corners of Manhattan. One day, I thought, ‘There needs to be a smarter way to do this.’ So I decided to open up my own gym down the block from where I originally started my career at Crunch. I had no idea what I was doing (at first) and made tons of mistakes, but I learned from them. That was the start of TS Fitness in 2011. We outgrew our 1,000-square-foot space and in 2015, we expanded into a space that’s roughly about 2,000 square feet. We’ve been here ever since.

ATN: What has allowed TS Fitness to stay competitive in New York City, a notoriously crowded market for boutique fitness?

NT: Community, which is one of our core values. We currently have 160 members, so they’re seeing the same people. Any person who’s willing to share time in that type of intimate setting, which for us is six people or less (in a typical semi-private class) is going to start creating relationships. 

A big part of that community is our team. Our coaches are experts in creating camaraderie. We do an icebreaker at the beginning of each class during warmups. We’re keen on bringing what I like to call “certified good people.” People can come in having all these certifications, but if I sense that you have an ego, or my fitness manager senses that you have an ego or that you’re not a team player, we don’t continue the interview process. We make sure our people are very humble and that they’re team-oriented, that they remember people’s names, shake hands and ask people how they’re doing.

ATN: How does TS Fitness drive community – and also business success – with its semi-private training model?

NT: I came from a one-on-one training background. I always loved community, and I thought to myself, ‘How can I impact more people?’ The answer was group fitness classes. But it’s so fast-paced that you become more like a cheerleader and not a coach. 

Back in 2013, I discovered semi-private training. I trained a few people together, progressing them through a structured workout. It’s an incredible business model because when you train somebody one-on-one, your whole hour is taken up by that one person. If they need to move their session, if they get sick or they stop training with you, you’re losing a huge amount of revenue and the flexibility of your time. 

With this model, as long as you stay above two or three people in a session, you’re going to do great. So I was able to charge less, have people train with me more and control my time while still giving members a custom experience. I feel like it’s a win-win-win. We went from offering five of these semi-private sessions to now offering over 70. 

ATN: What does a typical TS Fitness workout look like?

NT: We have a very structured program that progresses. Progression of exercises is important in creating results. You can’t do the same thing or the body adapts, but if you’re constantly changing the exercises, the member doesn’t learn how to do the fundamental movements properly and they can’t progressively go up in weight. Progressive overload is how the body builds more muscle tone.  

We start with foam rolling to release tension and allow the members to build rapport with other members. Then we go into mobility movements and a dynamic warm-up to get their nervous system, joints and muscles prepped for the workout ahead. We then get into strength training, which is divided into 3 blocks with two exercises each. Typically we do a lower body movement followed by an upper body movement. We then finish with a metabolic circuit that includes the core, cardio and sometimes some arms.  Every month the program changes and the exercises get a little more challenging. This keeps the progress going and helps the members learn new skills.  

ATN: What is the demographic profile of a typical TS Fitness member?

NT:  About 70% of our members are female that range between 30-50 years old. They have a variety of fitness levels; the program is customizable and we start people at different levels if they’re more advanced. We love working with beginners because we can make such a great impact on them and teach them proper ways to lift.

ATN: Looking back on your journey over the last 13 years, what are the biggest challenges in running a successful boutique fitness studio?

NT: One of the biggest challenges is keeping a constant flow of leads coming in and retaining members. It’s challenging because New York City is such a transient place, people will leave after four or five years. Especially when they want a family and need more space, they’ll move to the suburbs. 

You’re also in New York City, which is the most competitive city in the world because of the high concentration of gyms, although you have a huge concentration of people. You’re dealing with very high overhead, you need to pay your staff competitively and advertising is very expensive. You have to be doing Google ads, Facebook ads, referral programs and establishing joint ventures with local businesses. You also have to be running different challenges and offers, every month, if you want to be able to not just survive but thrive. There are a lot of companies out there that are just surviving. I’m completely bootstrapped and I’ve built this up into a seven-figure company. That’s taken time, but we’re doing some good numbers so we’re able to take care of our staff and create a good vision for the future.

The post CEO Corner: How Noam Tamir Built TS Fitness Into an NYC Boutique Fitness Staple appeared first on Athletech News.

Orangetheory Fitness is merging with Self Esteem Brands, the parent company of Anytime Fitness, in an all-stock transaction, the sides announced Thursday. 

The “merger-of-equals” deal represents one of the biggest fitness industry consolidations in recent memory as Orangetheory, a highly popular boutique fitness brand, joins forces with Anytime Fitness, a big-box gym powerhouse with a presence across the globe.

The new, combined company will represent $3.5 billion in systemwide sales and around 7,000 franchise locations across 50 countries and territories spanning seven continents, the sides said. 

“From our simple beginnings in 2002 with the first Anytime Fitness club, we’ve enjoyed rapid growth worldwide thanks to both the power of small-business franchising and our mix of brands that meet ever-increasing demand for more holistic and personalized health and wellness services,” said Chuck Runyon, co-founder of Anytime Fitness and CEO of Self Esteem Brands.

“With this merger, we will enrich even more people around the world through franchising, community and the services they need – now and in the future – on their personal health and wellness journeys,” Runyon added.

Self Esteem Brands recently reported strong revenue growth and franchise sales for its 2023 fiscal year, led by Anytime Fitness, which counts over 5,000 global gym locations. SEB’s portfolio also includes boutique brands like Waxing the City, The Bar Method, Basecamp Fitness and Summit Fitness. 

For its part, Orangetheory has continued to expand nationwide and overseas, amassing over 1,500 franchised studios with a presence in all 50 states and 24 countries. The fitness franchise, which offers heart-rated-based group workouts spanning cardio and strength training, has become a cult favorite among boutique fitness enthusiasts. 

Both Orangetheory and Self Esteem Brands touted the deal’s ability to lead to “significant international scale” for their brands. Orangetheory recently announced significant expansion plans in London, while Self Esteem Brands is bringing Anytime Fitness locations to France and Austria.

“As we start a new chapter, Orangetheory will continue to build on our legacy of innovation and transformation,” said Dave Long, co-founder and CEO of Orangetheory. “Today, with this groundbreaking agreement, we are one step closer to setting a new benchmark for what it means to be a global leader in fitness, health and wellness.

No timeline was given for when the merger is expected to close.

The post Orangetheory, Self Esteem Brands Merge in Major Fitness Deal appeared first on Athletech News.

Quitting a bad habit cold turkey rarely works. This is especially true with addictive practices like smoking and vaping. 

Habit replacement  – swapping a harmful behavior out for a similar but non-harmful one – is typically a more effective way to get on the right track.

This is the idea behind Füm, a Canadian brand founded in 2018 that features flavored air in place of harmful substances like smoke, vapor or nicotine. With Füm, users take in food-safe air featuring flavors such as Crisp Mint, Orange Vanilla and Maple Pepper instead of inhaling addictive substances.

While Füm itself can’t make marketing claims that its products help people quit smoking and vaping, the company has quickly grown as customers around the country use flavored air to replace nicotine and vapor-containing substances. 

As wellness products continue to gain shelf space in major retailers, and as more people around the globe become educated on the harmful effects of smoking and vaping, Füm could be poised for a breakout. 

Athletech News spoke with Füm co-founder and CEO Braeden Pauls about his vision to create a product that can help one million people quit smoking and vaping, the emergence of the “flavored-air” category, and his goals for Füm as the brand scales.

This conversation has been lightly edited for clarity and length.

Athletech News: Can you tell us a bit about your background and why you decided to co-found Füm?

Braeden Pauls: I studied psychology with the goal of becoming a psychologist, but my personal mission was to empower people to overcome barriers to becoming their optimal selves. I think the greatest tragedy in life for anybody is untapped potential. I’ve experienced it with friends, or different people in my life, where I saw that they had so much potential to achieve incredible things but they tripped themselves up with addictions. 

While I was in college, I met my co-founders for Füm. When we looked at the market, there were a lot of different use cases that we could have focused on as a company. But very early on, we got to see that there was potential to help people quit smoking and vaping. There are a billion smokers in the world; it’s the leading cause of preventable death. 

We thought we brought a really unique perspective since most of the things in the category for quitting smoking vaping were either pharmaceutical or nicotine-based. And some people were using vaping to quit smoking, but then getting addicted to vaping, and we’re starting to see the negative effects of vaping. People clearly enjoy having that hand-to-mouth companion throughout their day and enjoying a certain flavor – that’s become a ritual for a lot of people. We thought, ‘How can we satisfy that human desire without having the negatives of vaping or nicotine?’ That’s where we saw this massive opportunity. 

ATN: What differentiates Füm from other products designed to help people replace the habit of smoking or vaping?

BP: Our key differentiators are that Füm is non-addictive, non-nicotine and non-vapor. This is something you can enjoy without having to worry.

For us, the threshold of how good the product has to be is a lot higher because we’re not addictive, we’re not hitting those dopamine centers with nicotine. So we’ve worked really, really hard to make something that’s functional and delivers great flavor, but also the whole product experience, including something that’s aesthetically pleasing that people want to use. If we’re non-addictive, we’ve got to be sexy.  That’s our approach.

ATN: Is Füm purely a product for people who are looking to quit smoking and vaping, or can it be used by others?

BP: Our number one priority is people who are smoking and vaping. But we also see that there’s a massive opportunity to be that product that people would go to rather than getting into smoking and vaping. 

We want to establish the ‘flavored-air’ category to where people say, ‘Hey, I might want to do something in this general category of smoking and vaping, but I don’t want those negative effects.’ If that can be Füm, that’s a big deal. 

ATN: Is Füm the pioneer of the flavored-air category? How quickly is the category growing? 

BP: We’re definitely the pioneer. And right now we’re the leader in the category, but it’s growing. We’re seeing more and more companies wanting to build flavored-air products. I see this category becoming quite large in the future. 

If you look at the soft-drink market with sodas, for example, you have your Cokes and Pepsis that are full of sugar and caffeine. I think there’s a lot of people in the last 10 years that have realized, ‘I probably shouldn’t be drinking this all the time.’ We’ve seen the rise of the flavored-water category to be that alternative that people can enjoy without the negative effects (of soda). But for smoking and vaping, there isn’t an alternative category. So that’s where we see the flavored-air category going. 

ATN: What has Füm’s growth been like since 2018?

BP: We’ve been growing quite quickly. Over the last three years, we’ve been basically tripling in size as a company every year. We don’t want to share too many numbers publicly at this point, but our run rate is at around $36 million a year. 

ATN: How is Füm working to continue driving growth?

BP: There’s been a lot of different changes at different stages. For example, right now, we’re diversifying our channels. We started out primarily as a Shopify-based brand. We’re now moving into Amazon and moving into retail channels. We’re having really good success in those channels. We’ve already sold in Urban Outfitters, and we’ve had a lot of interest from big retailers including 7-Eleven and Circle K. But right now, we’re mostly working with smaller stores, including a pilot in Austin, Texas. Everything is looking really good.

ATN: How important is it to find independent research that could one day support the ability to make claims about Füm’s effectiveness in helping people quit smoking and vaping?

BP: It’s definitely a big focus for us. Because we have thousands of reviews with people saying, ‘Hey, this is effective for me in quitting smoking or quitting vaping.’ The anecdotal feedback is great, but being able to validate that through other means is important to us.

In our marketing, we currently talk about helping you kick bad habits and create good habits without directly naming the good habit or the bad habit. That’s our approach right now but we’re trying to figure out how we can work within the regulatory environment to be able to actually make those types of claims outright.

ATN: What are your key long-term goals for Füm?

BP: Our mission is to be able to help one million people quit smoking and vaping by 2026. We’ve got two more years until that goal, but right now, we’re on pace for it. We’re going to have to hit that 3x growth goal every year, which is aggressive, but I think we can do it.

In the longer term, we want to create the flavored-air category into something that’s as large as vaping. If we’re able to create a flavored-air category that exceeds the size of vaping, that’s going to displace a ton of people from both the vaping and smoking categories. That’s going to be a massive benefit to humanity in decreasing the amount of people dying needlessly from these products, as well as putting money back in people’s pockets and overall making the world better. 

The post CEO Corner: Füm’s Braeden Pauls on a World Without Smoking & Vaping appeared first on Athletech News.

Sometimes it makes sense to live by the old adage that if you want something done right, it’s best to do it yourself. 

Tamara Galinsky founded JetSet Pilates back in 2010 after she moved to Miami and struggled to find a reformer Pilates concept with the right mix of community, music and aesthetics. 

While opening a Pilates studio was a leap of faith at the time – the modality wasn’t nearly as popular fourteen years ago as it is today – Galinsky’s decision proved fruitful. JetSet’s 50-minute reformer Pilates classes have become a staple in the South Florida boutique fitness scene, and the brand recently set its sights on nationwide and international expansion.

Since launching its franchise arm in 2022, JetSet has signed development agreements to open multiple locations in states including New York, North Carolina and Texas as well as overseas in Melbourne, Australia. JetSet is eyeing 600 franchised studios as it continues to grow.

Galinsky spoke with Athletech News about her journey in creating JetSet Pilates, why she believes the reformer Pilates market is just getting started, and how aspiring founders can write their own boutique fitness success story.

The following conversation has been lightly edited for clarity and length.

Athletech News: Can you tell us about your background and why you decided to create JetSet Pilates? 

Tamara Galinsky: Immigrating from the former Soviet Union when I was 15 years old, my family and I arrived in the U.S. with humble beginnings. I graduated with a degree in Economics from the University of Pennsylvania and embarked on my career journey in New York City, initially working in technology marketing and sales for Reuters. However, I always wanted more freedom and independence from corporate work life. I left that path to start a successful career in commercial real estate, first in New York and after getting married, in London, both with Cushman & Wakefield.   

My Pilates journey coincided with my time in London, where I discovered reformer Pilates after struggling with fitness after giving birth to my first daughter in 2007. Through Pilates, I not only shed postpartum weight but also progressed to the absolute best shape of my life. 

Upon relocating to Miami from London in 2009, I sought Pilates studios offering more than just classes—a vibrant community, curated music and beautiful studios at affordable prices. I failed to find what I wanted, and I took a leap of faith to start JetSet Pilates. At the time I lived in a luxury high rise on South Beach, and I recall how my friends were trying to talk me out of opening my first studio because our building had a big gym and they said it was not needed. I decided to do it anyway, and just six months after moving from London to Miami, I signed my first lease and launched JetSet in 2010. That studio is still here today and thriving. 

ATN: What has JetSet’s growth been like since 2010, and what are your plans for the future? 

TG: Our growth has been remarkable. What began as a single studio has burgeoned into five corporate locations, with 29 franchised locations in development and poised to expand to over 600 franchised studios domestically. This journey has been nothing short of extraordinary.

ATN: What’s been the secret to JetSet’s initial success and recent growth?

TG: In the creation of brands, there’s never just one secret ingredient; instead, it’s a combination of various elements that resonate with customers. This is what makes JetSet special. Our classes are tailored to our method, our music is crafted exclusively for our classes, (we use) only the best-of-the-best JetSet certified instructors who are aligned with the brand values and culture, and our studios are designed to provide an immersive experience unlike any other. Each session at JetSet is not just a pilates class; it’s a meticulously curated journey. 

What sets our workout apart is the seamless flow, guiding you effortlessly through a wide variety of exercises that efficiently challenge your muscles and make the time float by. Our dynamic 50-minute workout isn’t just about effectiveness – it’s an elevated experience. Every class will incorporate movements in at least two of the three planes of movement, preventing injury and sculpting a more functional body. We teach in a way that allows you to maintain muscular tension, offering multiple options for each exercise to make the workout more personalized to you and accessible to all ages and fitness levels. 

ATN: Pilates has become a highly crowded space. How do you ensure JetSet continues to stand out from its competitors?

TG: Pilates may seem like a crowded space, however, I see a renaissance and reinvention of reformer Pilates as a modern method that attracts so many and not just an elite few. Reformer Pilates is still in the early stages of its growth phase within the market. Experts forecast the Pilates market to reach $277 billion by 2028, which is huge growth from 2022 when the market size was around $150 billion.

Frequently, I hear a recurring theme from both our potential and current franchisees: they’re drawn to our luxury branding, next-level instructors, and our vibrant sense of community. Our clean and modern studio design blends with JetSet sleek reformers, while all of our staff are connected with clients not just inside the studios, but also in the community. Our instructors are trained to let our classes flow in a unique way you will not find today at other Pilates studios. I firmly believe that we possess all the essential elements to emerge as the premier modern reformer Pilates brand, both nationally and internationally. 

ATN: JetSet has seen a lot of interest since launching its franchise model. Why did you decide to start franchising? 

TG: I recognized that JetSet possessed a really robust business model with strong unit economics, a strong brand and a high demand for our offerings nationwide. While I wanted to franchise early on, I was unwilling to do so on a shoestring budget. My vision was to assemble the most exceptional team in the industry, and that required time. Today, I can confidently affirm that our franchising team possesses a level of expertise that few, if any, emerging brands can boast at this stage. 

While the transient nature of Miami’s population poses challenges for many businesses throughout the year, it became a catalyst for JetSet’s expansion. The pandemic and influx of people from all over the U.S. from 2020 to 2022 provided the final spark. This migration not only allowed us to thrive locally but also propelled us toward establishing a formidable presence in the domestic and international franchising arena as clients wanted to take JetSet home with them. With so many visiting Miami and loving our studios, we knew we were on the right path. 

This conviction was affirmed by the dedication of our first franchisee, who traveled an hour each way from Fort Lauderdale, to attend our studios daily, bypassing other Pilates studios along the route. Despite the distance, she remained committed for a year until we were ready to launch our franchise program, at which point she promptly signed up. Today, that studio is one of the most profitable in our network, with record-breaking revenue in just a few months of operation.

ATN: What advice do you have for founders looking to find success in the boutique fitness space?

TG: First, their offering should align with their strengths and passions. Second, success in the business world is often more about execution than the initial idea. Meticulous planning, strategic implementation, and attention to detail can transform a concept into a thriving reality. Moreover, perseverance is an invaluable skill set for founders navigating the challenges of the fitness industry. The ability to weather setbacks, adapt to evolving market trends, and maintain a steadfast commitment to the vision is what separates the thriving from the struggling. 

Lastly, fostering a strong sense of community is crucial. Beyond providing a workout, I have aimed to cultivate a supportive and inclusive environment for the team, clients, and community as a whole. Building a community around shared goals creates a unique proposition that goes beyond the workout itself. Our franchise partners recognize this even from their initial inquiry with JetSet Pilates.

The post CEO Corner: Tamara Galinsky, JetSet Pilates Set Sights on Global Expansion appeared first on Athletech News.

Boutique fitness is more popular than ever, but the industry has at times been criticized for relying on fads and flash more than sustainable, effective workout routines. 

No one can level that line of criticism against Body Fit Training (BFT), the fast-growing boutique fitness franchise established in Melbourne, Australia, by Cameron Falloon, a decorated strength and conditioning coach who once served as Princess Diana’s personal trainer. 

Inspired by his time training professional athletes in the Australian Football League (AFL), Falloon created BFT in 2017 to bring strength and conditioning principles like progression, periodization and program design to the world of group fitness. The idea behind BFT, Falloon says, was to give everyday people access to the same elite-level strength and conditioning tools as AFL athletes, scaled for ability level and time constraints. 

“I found that there was a lot of sameness in the (boutique fitness) industry, and I didn’t see a lot of consideration around periodization or progression or really spending time on things like exercise selection for different individuals, like you would with an elite athlete,” Falloon tells Athletech News of market research he did before launching BFT. “How could I bring (my) knowledge and experience and make that accessible to the mainstream?”

Falloon was onto something. BFT has quickly spread across the globe with 290-plus studios open and 720-plus franchise licenses sold across several continents. Boutique fitness franchisor Xponential Fitness acquired BFT in late 2021 and has begun rapidly expanding the brand in the United States, having already sold almost 300 licenses in North America.

A lot of planning, technology and time has gone into making BFT workouts effective, scalable and engaging for members. But at the end of the day, Falloon believes the concept’s popularity is rooted in its focus on results above all else. 

“We get too caught up in trends as an industry, versus delivering the basic fundamentals at a really high level,” he says. “I think once you get that right, then you can start to explore and maybe get a little bit more experimental.”

Inside a BFT Workout

BFT workouts are modeled after the strength and conditioning programs Falloon devised for AFL clubs like Geelong, Port Adelaide and the Western Bulldogs, but scaled to be safe and accessible for everyday people. 

Currently, BFT offers 14 different strength and conditioning classes, each of which lasts 50 minutes and is scientifically designed to help members burn fat and build muscle while getting a full-body workout. Classes are performed in groups of around 36 people and include some combination of compound weightlifting exercises like deadlifts, bench presses and kettlebell swings, bodyweight movements like box jumps and pull-ups, and cardio work including running, cycling and rowing. The specific mix of exercises depends on class type.

Importantly, every BFT class is structured around an eight-week cycle, which allows members to measure their progress over time, just as pro athletes would during their training. Programming for each eight-week training block is carefully devised by BFT at the corporate level, and standardized programs are sent to every BFT franchise owner across the globe.

This ensures consistency, although Falloon says BFT empowers its coaches to modify or substitute certain movements to tailor the workout to the ability levels of individual class members. 

“If a member has poor range of movement in their shoulder or they’ve got some shoulder impingement, we’re not going to force them to do a military press like everyone else is doing in the class,” he explains. “We give (coaches) the tools to be able to scale that to the individual.”

Gamification Meets Strength Training

A highly calculated approach to program design isn’t the only thing that sets BFT apart from its competitors in the boutique fitness space. The strength and conditioning franchise is highly innovative in the way it uses heart-rate-tracking tech to gamify workouts, including strength training. 

Looking to drive member engagement, Falloon and his team created BFT³, a proprietary heart-rate tracking system that rewards members who get their heart rates to within specifically prescribed zones based on that day’s workout type. 

“There’s a lot of fantastic heart-rate products out there, but the gamification side of it is really lacking because they’re only ever rewarding a higher heart rate,” Falloon explains, noting that for strength-training exercises like a deadlift, the goal isn’t to get your heart beating as fast as possible, but to get to within a certain range that’s deemed optimal for the amount of weight lifted and reps being performed. 

“We’ve actually been able to use heart rate to gamify strength training, which is a world-first,” Falloon says.

During class, BFT members can see their heart rates displayed on-screen. Once class finishes, a leaderboard is displayed and members are rewarded with Gold, Silver or Bronze medals based on how close they got their heart rate to the target zone.

“It’s an instantaneous reward that creates community and a talking point,” Falloon says of BFT³ and the leaderboard approach. “You see people as soon as they finish a session, they’re high-fiving, staring at the screen waiting to see if they’ve got their gold medal.”

BFT also bakes other gamification features into its app to drive long-term engagement. For example, members earn status levels for in-class achievements, starting out as a rookie and progressing all the way to immortality, a journey that takes around six years to complete. 

The gamification features seem to be successful at driving member engagement. On average, BFT members attend class four to five times a week, which is significantly higher than the average for the boutique fitness industry, which hovers around two to three visits a week.

Global Expansion Plans

Falloon tells ATN that when he launched BFT back in 2017, the goal was to build a global brand.

Today, BFT has over 720 locations sold and more than 290 studios open, with a presence in countries including Australia, New Zealand, Singapore, Hong Kong, Malaysia, the U.S., Canada, the U.K. and Spain. 

In the U.S., BFT is well on its way to becoming a household name in boutique fitness. Since acquiring the brand in 2021, the Irvine, California-based Xponential has been rapidly expanding BFT’s footprint in North America.

Looking ahead, Falloon says he and Xponential share the same growth strategy in the U.S. and across the globe.

“We’ve got a common goal to have no ceiling on our growth but at the same time, don’t compromise the core product or the financial well-being of our franchisees,” the BFT founder says.

This article has been updated with clarifications on BFT’s expansion plans and global studio count.

The post How BFT Built a Global Strength Training Power appeared first on Athletech News.

For Chuze Fitness CEO Cory Brightwell, running an elite consumer-focused business is a lifelong pursuit. 

Having watched his father, Charles Brightwell, grow and scale a successful restaurant chain between 1978 and 1995 along with business partner Ray Barshick, the younger Brightwell got an early appreciation for management and entrepreneurship. 

In 2008, a few years out of college, Brightwell teamed with childhood best friend Nick Barshick, their fathers, and Barshick family member Kris Peterson to create Chuze Fitness.

Chuze has become one of the fastest-growing high-value, low-price (HVLP) gym chains in the United States, currently operating 59 locations in California, Colorado, Arizona, New Mexico, Texas, Florida and Georgia. Despite its basic memberships costing only $10 per month, Chuze gyms are filled with state-of-the-art equipment, wellness and recovery amenities, and group exercise offerings. 

Beyond offering expansive physical spaces, Brightwell attributes Chuze’s impressive growth to being hyper-focused on the member experience, namely bringing a high level of “hospitality” to its gyms. 

“The gym industry is not seen as a hospitality industry,” Brightwell says. “That’s on us to fix.”

Brightwell spoke with Athletech News about Chuze’s quest to bring hospitality standards to the fitness industry, the brand’s 15-year expansion journey, and how big-box operators can build a winning fitness experience in the post-COVID environment. 

This conversation has been lightly edited for clarity and length.

Athletech News: What did you and your partners see in the fitness industry that inspired you to create Chuze Fitness? 

Cory Brightwell: Keep in mind this was over 15 years ago – the industry has come a long way since then – but the experiences we had when we walked into other facilities were pretty consistent, and pretty poor all around. We would walk in and wouldn’t really get welcomed or greeted by the person at the front desk. Nobody was focused on the member experience; everybody was focused on selling the membership and selling personal training. It seemed like a very used-car salesman experience. It really opened our eyes to what we thought was an opportunity. That opportunity was to bring hospitality to the fitness industry.

We committed to being the friendliest and cleanest gym. Those are basic things, but they’re really difficult to execute at a high standard day in and day out. We wanted to be known as the brand that knows its members’ names, that is spotless when members walk in, and where everybody feels welcome. That’s what we committed to back in 2008 when we opened our first location. I think we’ve certainly differentiated ourselves in those two categories, hospitality and cleanliness. 

ATN: What has Chuze’s growth trajectory and evolution been like since its founding in 2008?

CB: In our first four or five years, we grew nicely in San Diego and went over into Tucson, Arizona, and started working our way north in Orange County, California. The first 11 locations were more of the smaller, prototype 15,000 to 20,000 square foot box gyms. It wasn’t until our 12th and 13th locations that we really expanded the footprint to 35,000 to 40,000 square feet. We felt like we could not only continue to differentiate ourselves through our hospitality and our cleanliness, but with our value proposition. We’ve added new amenities like pools, Jacuzzis, steam rooms and saunas, kids clubs, group fitness studios, high intensity interval training studios, infrared yoga studios and recovery studios.

The bigger box really became our growth vehicle for the future. Over the last 15 years, we’ve gone from one location to 59, mostly through organic, new-build clubs, although we have acquired some companies. On average, our growth rate in terms of locations has been about 18% every year and membership has grown around 21% year over year. When you look at revenue, it’s been about a 25% compounded annual growth rate. We’re committed to responsible growth.

ATN: Why does Chuze prefer corporate-owned gyms over franchising?

CB: We actually did establish a franchise arm back in 2011, and we do have two franchise locations. It was a strategy earlier in our existence to help protect our home market. However, we knew that’s not how we wanted to grow, at least for now, and so we’ve been focused on corporate growth.

There are some great franchises out there, but for us, we don’t want to lose control of the standard of execution. I’m not saying we won’t eventually explore that avenue, but for now, we like keeping things in-house so we can ensure from a quality-control standpoint that the experience we’re delivering to our members never slips.

ATN: How big can the Chuze footprint become with corporate-owned gym locations?

CB: It’s really dependent on how well we continue to execute. I would estimate that our goal is to open anywhere from five to 10 locations per year for the next three to five years. So hopefully in five to 10 years, we’re getting close to 100 locations. 

Acquisitions are another factor in our growth. Some of the new builds are less attractive in today’s environment because of construction costs and supply chain delays, so acquisitions are looking more appealing. Fortunately, with the network that we’ve built over the years, we have a lot of great relationships with operators who have 10, 20 or 30 locations that may be looking to retire or hand off to a good operator that’s going to take care of their brand and take care of their employees.

ATN: Speaking of acquisitions, Chuze recently acquired 16 Bailey’s Health & Fitness locations in Florida and Georgia. How did that deal come about?

CB: That really happened because of the relationship I have with David Bailey, the founder of Bailey’s. I’m part of REX Roundtables, which is a group of operators across the country. I’ve known David for almost nine years now, and we’ve done a lot of collaboration and have spent a lot of time at each other’s clubs and in each other’s markets. He and his brothers had been running Bailey’s for 35 years, and I think that after making it through COVID and surviving that, it was an opportunity and time for them to capitalize on the fruits of their labor. 

There was a good fit in terms of culture –  they were running a really healthy business – and it was also a great opportunity to give us a nice footprint on the East Coast.

ATN: Is Chuze looking to expand into any other areas of the country?

CB: We’re constantly looking and exploring new market opportunities. The good news is with the recent acquisitions in El Paso, Texas (Chuze acquired EP Fitness in 2022) and Florida, plus our existing geographic base through California, New Mexico, Colorado and Arizona, we’ve got a lot of white space to grow in our existing geographies. That’s probably where most of our growth in the near term will be focused, with new markets probably coming up in maybe the next three to five years.

ATN: What are the biggest challenges and opportunities for gym chains like Chuze in the post-COVID environment?

CB: The post-COVID world has certainly hit most operators on the operating cost side. Labor costs and minimum-wage inflation are really out of control, so operators are having to get creative on how they deliver a good experience and make things more automated within their facilities. There’s a big opportunity to leverage technology to find ways to mitigate labor costs while hopefully still having a human presence in facilities.

It’s also about finding ways to value-engineer the way we’re building our facilities, since construction costs are inflated from pre-COVID numbers and may not come back down. We want to build our facilities with premium finishes and build them to be bulletproof so they can sustain a lot of use. However, you’ve got to figure out how to do it without breaking the bank. I think the operators that can figure out that equation are going to be successful.

Another big opportunity is building bigger free-weight areas because free-weight equipment is cheaper than cardio equipment. If you’re allocating more square footage to your free weights or your functional training, generally the per-square-foot cost to build that part of the facility out is less than the cardio square footage or even some of the boutique-studio offerings that many operators have. We’re finding creative ways to give our members what they really want, including more access to strength training and free weight training. 

The post CEO Corner: Chuze Fitness, Cory Brightwell Use ‘Hospitality’ To Drive Growth appeared first on Athletech News.

A longtime audio industry executive, Kevin Duffy joined health and fitness company iFIT a little over a year ago with some lofty ambitions. 

“Our vision is to create the world’s most effective fitness platform,” Duffy, who took over as iFIT CEO in October 2022, tells Athletech News. 

To accomplish that goal, Duffy and the iFIT team will lean on the brand’s massive catalog of proprietary fitness content, as well as equipment from iFIT-owned brands including Freemotion Fitness, NordicTrack and ProForm.

Under Duffy’s watch, iFIT also plans to lean further into artificial intelligence. The Utah-based company recently announced the launch of its AI Coach, a tool designed to help iFIT users achieve their fitness goals with personalized and adaptive training.

Athletech News spoke with Duffy about why he joined the fitness industry after a long career in audio, his long-term vision for iFIT and the state of connected fitness post-pandemic. 

The following conversation has been lightly edited for clarity and length.

Athletech News: Can you tell us a bit about your background and why you decided to join iFIT?

Kevin Duffy: I was at a company called Sound United for almost 20 years, serving as the CEO for the last six years. We were the owner of premium and luxury audio brands, like Bowers & Wilkins, Denon, Marantz, Polk Audio and others. That company was sold in April of 2022. Six months later, in October 2022, I joined iFIT.

I really like being in “passion businesses,” or businesses that are enthusiastic about something. In audio, it was about entertainment, whether music or movies. When this position came up, obviously the passion for health and fitness outcomes is much bigger from a societal perspective.

At the same time, iFIT has some material assets that I thought were interesting. First, of course, the brands. NordicTrack is a very powerful brand that’s been built over decades. Freemotion, which is our brand used for the commercial channel, provides some diversity, along with ProForm, and then we have iFIT, which sits over the top of everything; a lot of capital has gone into developing iFIT content. And we’re backed by L Catterton, which is a prestigious investor in all consumer products, but particularly in fitness. 

Lastly, this is an industry that’s in transition, so it’s a transformative opportunity. I’m not a big fan of just sitting still, so for me, all of these things together were exciting. 

ATN: How does iFIT stand out from its competitors, whether in the fitness content space or equipment?

KD: On the digital fitness side, our content is unique and so compelling; it’s what we call “destination fitness.” You can walk along the Cliffs of Moher with an Olympian in Ireland – I did that workout recently, which is why I’m using it as an example. It’s pretty cool when you get on a treadmill, you’re running with an Olympian and you’re going to do intervals. She’s like, “Okay, let’s go,” and when she says that, the incline moves on its own; it’s called SmartAdjust. That’s really motivating – it makes me want to run farther than I would on my own. We have content across every geography, all seven continents, and we were nominated for an Emmy for our Mount Everest climb. You can even run with penguins in Antarctica. There’s pretty much nothing you can’t do.

On the hardware side, I come from a business where we made a lot of hardware. It takes a long time, years and years of reps, to get good at making hardware. The fact that NordicTrack has been doing it for 40 years makes it highly differentiated, as well as Freemotion. We will continue to modernize our hardware, but it’s already a big asset. Our Dual Cable Cross product is prevalent in every gym. Our treadmill is definitely the best treadmill in gyms.

ATN: How does iFIT balance the fitness content side of its business with the equipment side? 

KD: From my perspective, if you’re on our equipment, great, if you’re not on our equipment, great, people just need to keep working out. That’s the mission. However, I do think iFIT in the gyms is compelling. iFIT today runs on Matrix equipment as an example, which is a partner of ours. There’s no reason it couldn’t run on everybody’s hardware. I think that’s a very logical possibility. 

Our hardware products need to be able to stand on their own, but they should also leverage our content and iFIT software. 

ATN: What’s your vision for the future of iFIT?

KD: Our vision is to create the world’s most effective fitness platform. That word “effective,” to me, is really important. There’s been so much talk in general about improving health, but from my perspective, we haven’t as an industry improved health outcomes enough. I want to make that more of a reality as I look to the future of our company, and I think we’re at a unique moment in time where technologies such as AI are making that more possible. 

ATN: How are you working to turn that vision into a reality?

KD: There’s a huge opportunity to personalize and create more habit formation. Personalization is so important because everybody’s fitness journey is totally different. Some people want to run a 10k, some a marathon, some want to lose five pounds, and some just want to be able to lift their grandchildren. 

We’re launching our AI Coach, which personalizes content and habit formation. Creating habits is a very personal experience. I joke sometimes that I just need someone to say to me, “Kevin, you committed to this and you didn’t do it. Why not?” But I bet we’d lose hundreds of thousands of subscribers if we did that with other people because people are motivated in different ways. Some people are motivated by community, some are motivated by achievement and goals. Some people just need a little push, like the AI Coach waking them up and telling them at 6:30am, “You committed to work out at 7:00am, here’s your workout. Are you ready to roll?” 

ATN: Given the recent turmoil in the market, how confident are you in the future of connected fitness?

KD: I think we’re in transition. We had this growth pre-COVID, and COVID exacerbated that growth rate to a non-sustainable level for basically everybody in connected fitness. Then we came back to reality post-COVID as gyms opened, which created a lot of turmoil. A lot of inventory was bought during the COVID period, so that’s all working itself through. A lot of that work got done in 2023. Our company is well positioned, having worked through that, although I think the industry still has some ways to go to work through it all.

But if you look out a few years, the future of connected fitness is undeniable. People’s workout routines have become more fluid. It’s hard to believe this won’t be a materially bigger part of the world three to five years from now than it is today. Which is another reason why I came to iFIT.  

The post CEO Corner: iFIT’s Kevin Duffy on the ‘World’s Most Effective’ Fitness Platform appeared first on Athletech News.

Crunch Fitness has come a long way since Doug Levine founded the brand out of a basement in New York City’s Greenwich Village neighborhood back in 1989, but the company hasn’t forgotten its roots as it’s expanded across the globe.

With more than 450 locations open, 1,400 franchise licenses sold and over 2 million members, Crunch Fitness is in a high-growth phase. However, the brand still abides by its original “No Judgements” philosophy of making fitness fun and accessible. 

Thirty-five years ago, that meant creating gyms that didn’t scare people off in an era when fitness was far more hardcore and much less mainstream than it is today. In 2023, that’s still important, but Crunch’s conception of what “no judgements” means has evolved into also providing all the amenities, modalities and tools its members need to have a great experience, in whatever form that may take. 

“The big thing for us is to meet our members, or potential members, where they are,” Crunch CEO Jim Rowley says of the company’s philosophy as it expands. 

Rowley spoke with Athletech News about how Crunch designs its gyms in the modern era, the way it’s approaching digital fitness content and what’s in store for the company as it continues to expand. 

Open Floor Plans Are In, But So Is Community

It’s no secret that gyms are becoming more open, with large, turf-filled functional training areas increasingly taking the place of cardio and single-use weight machines. 

“The gym of today is so much different than the gym of five years ago, it’s incredible,” Rowley says. “Today’s gym-goer wants more free space and in that free space, they might bring their iPhone or their iPad and do a digital workout. They’re going to bring bands, dumbbells and kettlebells – different workout elements – and they’re going to work out in this tight, little space within a big, open space.”

In this new era, one of the biggest challenges for gyms is finding ways to give members the open space they desire while still fostering a sense of community at a brick-and-mortar location.

For gym owners who naturally want to maximize every square foot of their facility, opening up the floor and removing equipment may seem counterintuitive. But the Crunch team is working with its franchisees to design creative layouts that leverage open space for the benefit of members, which in turn boosts business. 

“That includes a lot more Olympic weightlifting racks, relax-and-recover areas, and open space that works for the members,” Rowley says. “It’s lighting that allows them to be socially connected as well, because lighting is critically important when you’re filming yourself or taking a selfie you want to share on your social pages.” 

Group Fitness Remains Vital

The increased emphasis on open space in modern gyms isn’t to say that closed-door group exercise classes are fading in popularity. Rowley says Crunch is as committed as ever to its group fitness offerings, which include a large catalog of proprietary classes that range from strength training to Pilates to boxing.

“We’ve (also) been spending a lot of time and energy on the meditative state and breathwork, and doing things that are about reducing your stress, improving your lifestyle and so forth,” Rowley adds of Crunch’s approach to group fitness.

Embracing Digital Fitness

While Crunch’s brick-and-mortar franchise business is thriving, the company is also investing heavily in digital fitness content. In early 2023, the brand launched Crunch+, an on-demand and live streaming platform that offers users access to a range of fitness and wellness classes including HIIT, yoga, cardio boxing, stretching, Pilates and meditation. Crunch is also creating short-form digital fitness content to reach members who are pressed for time but don’t want to miss their daily workout.

The idea behind Crunch+ isn’t to replace the traditional in-person experience but to supplement it with additional fitness and wellness content for members who can’t get to the gym.

“If we can increase (members’) workout volume by one to two times per week, when they’re at home on a Saturday or Sunday afternoon, or on a rainy Monday morning, that’s all we’re looking for,” Rowley explains. “It’s a complement. We don’t look at it as replacing anything in terms of brick and mortar.”

However, with the digital platform, Crunch is also looking to reach consumers who don’t work or live near a physical location. 

“If you don’t have a Crunch near your home or work, we’d like you to participate with our brand digitally, because we’re coming to your town over the next couple of years. We’ve got another 1,000 of these plots to open,” Rowley says, noting Crunch’s many signed franchise agreements for additional gym locations.

Breaking New Ground With Amazon

The gym of the future also figures to be tech-enabled. Crunch seems to already have a leg (or hand) up on its competitors in this area. Earlier this year, the fitness brand made waves when it partnered with Amazon One to allow members at select Crunch locations to swipe their palm over a biometric reader to enter the facility rather than use a key fob. 

That type of keyless entry tech has been trialed at Whole Food Markets and sports venues, but never before at a fitness facility.

“I was a little concerned in the beginning that we were too small for this behemoth of a company, but they’ve treated us like we’re the biggest company in the world,” Rowley says.” There’s a true partnership with Amazon, and the spirit of that partnership is displayed in how they’ve rolled out the Amazon One product in our clubs side by side with us.” 

For Crunch, it’s another instance of meeting members where they are.

“It’s for the safety and security of the members, but it also allows us to run smarter in the gyms in terms of allowing members to have access, so that the person working the front desk can really be at the forefront of member service,” Rowley notes. 

Crunch and Amazon plan to bring the hand-entry tech to more gyms in 2024. 

“I would look at 2023 more as a test of what’s possible, and 2024 as a full rollout with Amazon,” Rowley shares.

What’s Next for Crunch

In 2024, Crunch will celebrate the 35th anniversary of its founding in 1989, but in some ways, the company is just getting started. It only began franchising in 2010, and has been on an expansion tear ever since, opening over 450 locations across the country, with a growing presence in the Southeast and Southwest in particular. Thanks to that success, Crunch earned a spot as the top-ranked fitness brand in Entrepreneur magazine’s 2024 Franchise 500 list, which ranks companies based on factors including growth, brand power and financial stability.

With more than 1,400 franchise licenses sold, a lot more Crunch gyms are in the pipeline

“Our plan for 2024 is to increase our growth rate probably by 20 to 25%,” Rowley says. “It’s going to be the biggest year of our company.”

Crunch is also aiming to reach 3 million total members at some point in 2024.

Looking even further ahead, given its current sales numbers, Rowley believes Crunch could one day reach 1,500 locations in the U.S., and double or triple that number when taking international expansion into account. (Crunch already has a presence in Canada, Spain, Portugal, Costa Rica and Australia). 

As Crunch continues to pursue its expansion plans, Rowley has some friendly advice for onlookers. 

“Hold on to your hat for what you’re going to see in the next five years,” he says.

The post How Crunch Is Building for a New Era of Fitness appeared first on Athletech News.

Few executives have a deeper personal connection to the brand they founded than Dan Freed, who went from high school dropout to Yale graduate thanks in large part to the power of nootropics, a category of supplements touted for their abilities to improve cognitive functions like attention, memory and creativity. 

Freed established Thesis in 2017 to bring the benefits of nootropics to the masses. Thesis takes a personalized approach to nootropics; users take a detailed online quiz to receive a personal product blend optimized for their unique characteristics. 

Over the last six-plus years, Thesis has come a long way from its humble beginnings operating out of Freed’s apartment; in May, the company raised $13.5 million in funding rounds that included participation from former NBA star Kevin Love. Dr. Gabrielle Lyon, a popular functional medicine practitioner, currently serves as a scientific advisor to Thesis. 

Athletech News spoke with Freed about his incredible journey from high school dropout to CEO, the power of nootropics, and his plans for Thesis following its recent funding round. 

The following conversation has been lightly edited for clarity and length.

Athletech News: Can you tell us about your background and how you were introduced to nootropics?

Dan Freed: I have severe ADHD, so for as long as I can remember I’ve struggled with functioning in structured environments. I was expelled from preschool when I was four, and I was formally diagnosed (with ADHD) when I was six. I continued to struggle in school – I was constantly in the principal’s office, getting suspended and dealing with behavioral issues. When I was 16, I dropped out of high school and went to work in fast food. It was a really difficult time in my life. 

I ended up getting a lucky break and became a chef. I loved cooking – the type of focus needed to be successful in a kitchen is completely different than a classroom. ADHD is like a superpower. I spent my 20s traveling around the world and cooking, being fortunate enough to work in a Michelin three-star restaurant in France. By my late 20s, I started to burn out. I wanted to do something different with my life but I didn’t have a high school diploma, so my options were really limited.  

I decided to go back to school. I had a crazy ambitious goal to get an MBA, so I got a GMAT study guide, and it felt like I was back in 10th grade. I would read a page five times but couldn’t understand it and couldn’t sit down long enough to take practice tests. I heard about nootropics on a study forum, and I went out and bought everything I could find. I would take different ingredients and study. Most of them did nothing, but a couple of them worked. When I figured out how to combine it into a winning formula, the results were life-changing. I ended up scoring in the 99th percentile on the GMAT, which opened up so much opportunity in my life. I did my MBA at INSEAD, and from there, I was offered a partial scholarship to do another Master’s degree at Yale, where I got to study some of the science behind nootropics and really indulge my intellectual curiosity. 

Because nootropics were so impactful for me, I became an evangelist. This was around 10 years ago. I was the crazy guy at dinner parties that wouldn’t shut up about nootropics.

ATN: How did you go from nootropics evangelist to founding Thesis?

DF: I had this realization that the ingredients that worked for me didn’t work for everyone, because I was literally giving them out to people. I started selling (nootropic blends) out of my apartment to friends and friends of friends and before I knew it, it just kind of took off.

The name we initially launched with “Placebo Proof.” It was structured like a four-way crossover clinical trial, and there were actual placebos in the box. We tested more than 100 different ingredients, tons of different dosages, and we started to see very clearly that certain formulas, for certain use cases, with certain ingredients and certain dosages, worked the best. After more than 2,500 people went through that Placebo Proof product, we adjusted it and created (something) very similar to what Thesis is today. We incorporated Thesis in 2017.  (In 2023), we did more than 50 million capsules. 

ATN: How does Thesis personalize nootropics for customers?

DF: We’re still constantly beta testing, it’s really a data-driven approach. Our core hypothesis was to structure something similar to a clinical trial, but with a lot fewer controls, so you’re not going into a doctor, you’re not giving blood tests, you’re giving subjective data on how you feel, but we increase sample sizes by orders of magnitude. At this point, we have millions of people who’ve gone through our quiz, which has been there from the beginning. Hundreds of thousands of people have left individual reviews on formulations throughout the lifetime of the company, from Placebo Proof all the way to what Thesis is today. We use this data to constantly optimize. 

Stasis is our newest product line to launch, and it came directly from our customers. We saw that there were people purchasing Thesis, but they were on stimulants like Adderall; Thesis isn’t meant to be taken alongside powerful medications like that. Those customers were talking about jitters, (energy) crashes, trouble sleeping. So we formulated a new product line specifically meant to be taken alongside stimulants, including things like caffeine, to mitigate short-term side effects and long-term damage caused by oxidative stress.

ATN: The nootropics movement is still in its infancy. How do you view nootropics within the larger supplement industry?

DF: I look at us as a new, emerging category of supplements as classified by the FDA. If you look at new categories within the broad supplement industry, the closest thing I would compare nootropics to is probiotics. Five years ago, the concept of ingesting good bacteria to improve gut health was absurd, almost nobody had heard of it. Now you walk into Whole Foods and there’s an entire section of probiotics, prebiotics, all of that. I think nootropics as a category within the broader supplement category is at this inflection point where probiotics were five years ago.

ATN: How has Thesis grown and evolved following the recent $13.5 million funding rounds? 

DF: (Funding) has forced this level of ruthless prioritization and capital efficiency. Not too long ago, the entire company was in my apartment. We now have the capital to invest in longer-term initiatives like content and community, which are on our roadmap. We’ve also spent a lot of time hiring. The last several months have been about filling out the executive team, because we were bootstrapped for so long. We’ve done a great job of recruiting some of the best talent in the world, and I’m really proud of that. We also have product launches planned for 2024. 

ATN: Looking ahead, what are your main short and long-term goals for Thesis?

DF: Short term, it’s just continuing to build out this data-driven approach to personalization and to get more people to the right formula faster. That’s a really complex challenge, especially when you have both Thesis and Stasis. 

Long term, I keep going back to when I was diagnosed at six, and I remember what it felt like when I thought there was something wrong with me, and I couldn’t understand why other people could just sit down and do their homework and I couldn’t. I remember how much pain it caused me throughout my childhood and into adulthood. I’m just as intelligent now as I was when I dropped out of high school. The key difference is my ability to focus. And it’s not only nootropics, it’s nootropics with behavioral interventions, that made the difference. But I just keep thinking about how many people aren’t living up to their potential, about how many people could do what I’ve done if they just have the same options. That’s our core mission.

The post CEO Corner: Thesis’ Dan Freed Is Leading the Nootropics Movement appeared first on Athletech News.

This article is part of ATN’s DISRUPT 2023 video series, which features key conversations with executives from the most successful brands in fitness and wellness. To watch more videos, click here

Centr, the fitness and wellness platform founded by Chris Hemsworth, has been on a tear recently, releasing new products, creating content and forging strategic partnerships with other leading brands.

The burst of activity is part of CEO Andrew Sugerman’s ambitious plan to turn the platform into what he calls a holistic health and wellness “ecosystem,” a place where consumers can go to not only get workout routines, meal plans and mediation content, but also buy strength-training equipment and other fitness products. 

Sugerman sat down with Athletech News during DISRUPT 2023 to discuss his first 12-plus months on the job, his vision for Centr, and the perks of having Hemsworth as the face of the brand. 

More Than a Fitness App

Sugerman took over as Centr’s CEO in September 2022 with a clear goal in mind: make Centr more than just a fitness app.

“The vision was to establish Centr as a highly trusted lifestyle brand in the wellness category where we bring together the latest research, content, digital tools (and) physical products, all to help users, our audience and consumers on their wellness journey,” Sugerman says.

To bring Sugerman’s vision for the brand to fruition, Centr has focused on creating both content and equipment to bridge the gap between the physical and digital worlds.

On the content side, Centr continues to produce fitness and wellness videos featuring Hemsworth and expert coaches, covering everything from workout programs to healthy recipes to meditation routines. Centr’s content is built on the three Ms: meals, mind and movement, Sugerman noted.

“It’s really the holistic element of how these three pieces work together, and then we’re wrapping that with an element of motivation,” he said. “What is it that actually drives you every day when you wake up to want to care about meals, movement and mind?”

At the same time, Centr also recently entered the fitness equipment space, leveraging its close relationship with Inspire Fitness to launch new strength training products. Consumers can now buy Centr-branded home-gym products at Walmart, and the company recently inked a deal with Hyrox to provide competition-level equipment for hardcore athletes. Expect to see more Centr products hit the market soon.

“We’ve got a lot of new things we’ll be announcing over the coming probably three to six months,” Sugerman said during the conversation, which was filmed in late September. “So it’s just the start.”

Not a Connected Fitness Company

Combining equipment and content may seem like old hat in the fitness world, but Centr is doing things a bit differently than its competitors, according to Sugerman.

“We don’t really view (ourselves) as a connected fitness company,” the Centr CEO said.

Sugerman says that unlike connected fitness companies that operate on a “closed-loop” – you have to buy a digital subscription to use the hardware and vice-versa – Centr takes an “open” approach where consumers can use the brand’s equipment and content independently of one another, or they can combine the two. 

“We really want to create a ‘connected ecosystem’ where we don’t require one thing to drive the other,” Sugerman says. “If you want to buy some of our products and not tap into the digital side we’re offering, that’s your choice. We want to enable options and accessibility.”

The Hemsworth Effect

Sugerman also touched on what it’s like to have Hemsworth as the founder and face of the Centr brand, saying he’s the “perfect person to have associated with a company like ours.”

Contrary to what some might assume, Hemsworth isn’t the normal uninvolved celebrity just lending his name and star power to a brand in return for cash or clout.

“Chris is not an endorser of the brand, he is the brand,” Sugerman says. “He really lives our mission. He throws himself into the latest research and insights. … He’s constantly looking at how to be on the front edge of longevity, the front edge of trends in the world of fitness and nutrition.”

According to Sugerman, Hemsworth founded Centr to create a platform where everyday people could receive the same expert-level fitness, nutrition and mental coaching he had access to as a Hollywood actor.

As Centr looks to make good on Hemsworth’s initial vision, the brand will lean into personalization. The goal is to find ways of turning Centr into the ultimate “interactive coach” for users on their fitness and wellness journeys, Sugerman says.

“It’s really back to that notion of, ‘How do we bring the expert perspectives that Chris experiences and bring that to bear for consumers, regardless of their socioeconomic position,’” he says.

The post Centr CEO on Building a Fitness & Wellness ‘Ecosystem’ appeared first on Athletech News.

In the first full year of post-pandemic life, the fitness and wellness industry has seen its fair share of headlines, both positive and negative. 

While dealmaking has cooled off some from its pandemic-era high, there still were plenty of major fitness and wellness moves in 2023, including brand partnerships, nine-figure funding rounds and celebrity endorsement deals. 

Athletech News recaps the eight fitness and wellness moves that defined 2023, and forecasts what each could mean as we enter a new year.

• 

  1. Peloton, Lululemon Strike Content & Apparel Partnership 

  Two of the biggest brands in the fitness and activewear categories joined forces in a major way in 2023. As part of a five-year global partnership, Peloton agreed to create exclusive digital fitness content for Lululemon Studio, while Lululemon became Peloton’s official apparel partner, creating co-branded clothing for instructors and fans. 

  Why It Matters:

  The deal marked the final nail in the coffin for the Mirror, Lululemon’s ill-fated piece of connected fitness hardware that never quite lived up to its $500 million price tag. Lululemon announced it would be officially discontinuing Mirror, instead pivoting fully to Lululemon Studio, its digital fitness platform which now gives members access to Peloton’s library of workout classes. 

  For Peloton, the deal shows the connected fitness company’s commitment to becoming more than just a “bike company,” as it looks to offer different types of fitness content, from yoga to strength training, in addition to spin classes. 

  What To Watch in 2024:

  While Peloton has built a large following of dedicated fitness fans, the jury is still out on whether the company can successfully transition from being a cycling-focused brand to a one-stop shop for diverse fitness content. Providing content for Lululemon Studio will expose Peloton’s workouts to even more people around the world, potentially helping the connected fitness company make good on its bold expansion plans.

• 

  2. WeightWatchers, Life Time & Xponential Make GLP-1 Moves

  For better or worse, the weight-loss-drug era is officially here. GLP-1s like Ozempic and Wegovy are flying off the proverbial shelves as consumers seek access to the drugs, which have been celebrated for their proven ability to help people lose significant amounts of weight in a relatively short period of time. 

  WeightWatchers acquired telehealth brand Sequence in early 2023, a move that signaled the weight loss company’s shift from a food-based approach to adopting prescription drugs including GLP-1s. WeightWatchers still offers its famous Points Program, but the company has made weight loss meds a core part of its offering. 

  In the fitness realm, brands including Life Time and Xponential Fitness are embracing weight-loss drugs. In November, Life Time launched its first Miora Longevity and Performance clinic, offering members access to GLP-1s such as Ozempic under medical supervision, in addition to a host of other wellness benefits. 

  Xponential, meanwhile, announced its intention to acquire Lindora, a metabolic health brand with clinics offering weight-loss medications. Xponential plans to rapidly scale the brand through franchising. 

  Why It Matters:

  The deals struck by WeightWatchers, Life Time and Xponential show that at least some established fitness and wellness brands are willing to embrace GLP-1s, making weight loss meds an important part of their business strategy. 

  What To Watch in 2024:

  There’s still much to learn about the long-term effects of GLP-1s on sustained weight loss and other aspects of health. Some analysts predict that the rise of weight-loss drugs will lead to a corresponding rise in gym membership sales as more consumers become confident enough in their bodies to want to hit the gym; others have expressed skepticism about the drugs’ ability to spur meaningful changes in people’s fitness and wellness habits.

• 

  3. Apple Partners With Anytime Fitness

  Apple has been pushing further into fitness and wellness for several years now, with advancements in Apple Health and the launch of Apple Fitness+. In November, the tech giant inked its first deal with a gym brand, partnering with Minnesota-based Anytime Fitness. Through the collaboration, Anytime Fitness members across the U.S. and Canada will have access to an Apple Fitness+ subscription included in their membership at no extra cost. The two companies could take their partnership even further with more collaborations down the road, Anytime Fitness CEO Chuck Runyon has told Athletech News. 

  Why It Matters:

  The deal marks Apple’s firm entry into the brick-and-mortar gym space, potentially signaling a major shift in how the company will approach fitness and wellness in 2024 and beyond.  

  What To Watch in 2024:

  It will be interesting to see if Apple partners with any other gym brands, or if the tech giant is content to ride with Anytime Fitness and its network of 5,200 locations worldwide for the time being. For Anytime Fitness, can a partnership with Apple sway consumers to choose AF over rival low-price, high-value gym chains like Planet Fitness, Crunch Fitness and others?

• 

  4. Pvolve Inks Deal With Jennifer Aniston

  Functional Fitness brand Pvolve reached a new level of mainstream recognition and notoriety this year, partnering with celebrity A-lister Jennifer Aniston. The former “Friends” star will advise on Pvolve’s marketing, product and programming strategies, as well as star in Pvolve commercials, including a strength-focused ad campaign that launched in August.

  Why It Matters:

  While celebrity endorsements are nothing new for the fitness industry, getting a star on the level of Jennifer Aniston is uncommon, and it bodes well for Pvolve as the brand expands its footprint of brick-and-mortar studios through franchising. 

  What To Watch in 2024:

  So far, the partnership seems to be bearing fruit for Pvolve: the fitness brand reported a 650% increase in branded search and a 125% increase in franchise inquiries since partnering with Aniston. As time passes, we’ll see how much Pvolve leans on its celebrity affiliation as the brand continues to grow nationwide and even internationally.

• 

  5. Nike Launches Group Fitness Studios, Equipment Line

  Nike is no longer just a fitness apparel brand. In 2023, the Swoosh entered the brick-and-mortar space, opening group fitness studios in Southern California, with another location planned for Austin, Texas. In partnership with FitLab, Nike Studios offers functional training and endurance workouts led by expert instructors. The sportswear giant also pushed into the fitness equipment space, launching Nike Strength, a collection of strength training equipment including barbells, bumper plates, dumbbells and kettlebells, all of which feature prominent Nike branding. 

  Why It Matters:

  As seen with Apple, “blue chip” companies are increasingly entering the traditional fitness space. Nike clearly believes in the long-term potential of the fitness and wellness market, announcing it would hire over 1,000 global fitness trainers to lend expertise in creating holistic fitness content, programming and experiences, presumably as part of its Nike Studios endeavor. 

  What To Watch in 2024:

  Nike could make significant inroads into the fitness and wellness space if the brand is truly committed to the vertical, although it remains to be seen whether consumers will latch onto the idea of visiting a Nike Studio for their daily workout. On the equipment front, could Nike become a true rival to established strength training brands like Eleiko and Rogue Fitness?

• 

  6. Peloton Announces Rebrand, New Strategic Vision

  Back in May, Peloton announced its intentions to become the fitness company for “anyone, anywhere,” looking to shed its perception as a “bike company” focused predominantly on wealthy consumers. 

  As part of a large-scale rebrand, Peloton launched a new fitness app with three subscription tiers, including a freemium option that offers more than 50 classes curated across 12 modalities for no cost. The Peloton App One and Peloton App+ tiers cost $12.99 per month and $24 per month, respectively. The connected fitness company also launched Peloton Gym, which offers at-home strength training workouts. 

  Why It Matters:

  Peloton CEO Barry McCarthy has said that the company wants to branch out beyond cycling workouts, becoming a more well-rounded digital fitness company that makes most of its money through content rather than hardware sales. As a result, Peloton has forged partnerships with top sports teams and leagues, universities and even hotel groups as the brand looks to increase its global recognition and drive users to its app. 

  What To Watch in 2024:

  So far, Peloton has struggled to translate its rebrand into financial success. In its most recent earnings report, Peloton lost paid subscribers, with the connected fitness company struggling to convert free app users into paying members. Peloton has one of the most loyal fanbases of any fitness company, although many of those fans are cycling diehards. It remains to be seen whether Peloton can bring new members into the fold by emphasizing other types of fitness content.

• 

  7. EGYM Raises $225M, Preps for IPO

  In July, fit tech company EGYM received €207 million ($225 million) in growth capital, closing a financing round led by Affinity Partners, a global investment firm launched by Jared Kushner, the son-in-law and former advisor to President Donald Trump. The funding will enable the Munich-based EGYM to prepare for an IPO, the company’s co-founder and CEO Philipp Roesch-Schlanderer has said.

  EGYM provides smart gym solutions, including software and fitness equipment, for more than 15,000 gyms worldwide, and is rapidly expanding its North American team. 

  With the investment, EGYM will also focus on further developing its digital solutions for health-focused workouts and expanding the EGYM Wellpass corporate health network, an area Roesch-Schlanderer has identified as critical. 

  Why It Matters:

  Funding has been harder to come by in 2023 due to macroeconomic conditions, but Affinity Partners’ investment in EGYM shows the promise of tech-enabled fitness. With even more resources, EGYM looks poised to extend its lead as the dominant fit tech provider on the market, potentially reaching even more gyms worldwide.

  What To Watch in 2024:

  Will EGYM’s impressive funding haul be a sign of things to come for fit tech companies or was the round more of an anomaly given the current economic outlook? The latter outcome is possible, as EGYM seems unique in its ability to offer software and hardware solutions under one brand. 

• 

  8. BowFlex, BODi Change Names To Spark Turnaround

  2023 saw a pair of down-on-their-luck fitness brands change their names in hopes of sparking a turnaround. In March, The Beachbody Company announced it would be known as BODi moving forward, a move co-founder and CEO Carl Daikeler said aligned with a shift in the company’s strategy toward inclusive fitness and wellness and away from the looks-based marketing that made the brand famous but has seemed to turn off modern consumers, especially Gen Z. 

  In the fall, Vancouver, Washington-based fitness equipment maker Nautilus changed its corporate name to BowFlex, rallying behind its most popular brand. As part of the rebrand, BowFlex introduced a new color scheme, marketing campaign and at-home equipment designed to target consumers in the connected fitness era. 

  Why It Matters:

  Two of the biggest fitness brands of the 2000s era have struggled in recent years, but they’re not going down without a fight. For both companies, the name change has been accompanied by a major rebranding effort that could fundamentally change the way each positions itself in the fitness and wellness industry. 

  What To Watch in 2024:

  Will the name-change tactic employed by BowFlex and BODi give other struggling fitness companies a blueprint to follow to regain relevance, or will it prove to be a cautionary tale for fitness and wellness brands looking to return to their glory days?

The post The Fitness & Wellness Moves That Defined 2023 appeared first on Athletech News.

Pilates is surging in popularity and making daily headlines in the news, but no brand does the modality quite like Solidcore.

Founded by fitness entrepreneur Anne Mahlum in 2013, Solidcore has grown its footprint to 110 locations, gaining tens of thousands of members who’ve become drawn to the Washington, D.C.-based brand’s unique take on the typical Pilates workout. Over the next five years, Solidcore, which brands itself as [solidcore], is looking to expand even further, eyeing 250 U.S. studios by 2028, and potentially many more after that. 

Endearingly dubbed “Pilates on steroids” by some fans on social media, Solidcore classes are significantly more intense than traditional Pilates, with no planned rest periods during a 50-minute-long session (members can take breaks at their own pace if they choose). Dimmed blue lights, upbeat music and energetic instructors add to the atmosphere, further differentiating a Solidcore class from your standard Pilates offering.

“The workout itself is much more athletic, and comes with a higher level of energy and intensity,” Solidcore president and CEO Bryan Myers tells Athletech News. “It’s just a totally different approach to what you see out there in the market traditionally under the Pilates umbrella.”

Myers was a Solidcore client before he joined the brand in 2018 as chief operating officer. Now CEO, a position he took in 2021, Myers believes the main thing that differentiates Solidcore from its boutique fitness competitors is the energy and efficacy of its workout. 

“It’s kind of sad that when we talk about the health and wellness industry a differentiator for us is that our product actually works, but unfortunately, that is the nature of our industry in many ways,” Myers says. “I’m really proud to stand behind a product that gives people the results they’re looking for when they walk in under the blue lights, whether those be physical strength, mental strength or emotional strength.”

The challenging nature of a Solidcore workout also fosters a strong sense of community among members, who become galvanized by the shared experience of pushing themselves to their limits, Myers adds. 

Solidcore’s Expansion Plans

Topping the 100-studio mark in its first decade of existence is impressive, but Solidcore is set to kick its expansion efforts into even higher gear. 

Earlier this year, Solidcore received an influx of strategic funding from Kohlberg & Company, a private equity firm that bought out Mahlum’s stake in the company. Armed with fresh funding and support from existing investors including VMG Partners and Peterson Partners, the boutique fitness brand has set an ambitious goal: having 250 studios open in the U.S. by 2028. 

Hitting the 250-studio mark means Solidcore will have to more than double its current footprint in just five years. Its executive team is confident it can meet that challenge. 

Heidi Blesy, the company’s vice president of studio development, believes Solidcore is only just “scratching the surface” of what it can accomplish. Beyond its effective workout and loyal membership base, Blesy points to the typical Solidcore class size as an advantage when it comes to expanding. 

“Our studios are medium-sized, so not as small as some of your mom-and-pop Pilates where it’s only five or six machines, but it’s not as large as (some boutique fitness brands) that require 50 or 60 people per class,” Blesy explains. “There’s a lot of white space for us.”

Unlike many boutique fitness concepts, Solidcore doesn’t franchise, so the brand can be strategic about which cities and towns it chooses to enter.

Winning the West Coast

Despite having locations in 25 states, Solidcore is still predominantly an East Coast brand, with large footprints in its home base of D.C. and in New York City. While it already has some presence on the West Coast with studios in Los Angeles and Seattle, Solidcore is looking to become even bigger in the Pacific. 

In July, the boutique fitness brand announced it would be entering the San Francisco market, with two studios planned for 2024 in the Castro and Marina neighborhoods. Plans are underway to open even more Bay Area locations, including in Silicon Valley and the South Bay. Solidcore is also eyeing the Phoenix and Portland markets, Myers tells ATN.

“It’s critically important that we not just enter, but that we really win the West Coast,” Myers says, noting the area is “one of, if not the most important fitness markets in the country.”

Scaling in the South

Solidcore also plans to continue placing studios in cities across the Southeast and Southwest parts of the U.S., which are steadily growing in population.  

“We’ve had great success in the southeast, particularly Atlanta and North Carolina,” noted Joshua Rainey, Solidcore’s director of real estate. “We recently opened in Nashville and had a really strong opening, so we’re looking forward to bringing some more (locations) to Tennessee.”

Rainey identified Florida and Texas as other key states for Solidcore’s growth.

“All of these areas have seen really great population growth and migration over the past 20 years from other parts of the country,” he said, adding that Solidcore is able able to take advantage of the “brand equity” it’s built with the increasing number of people from the Northeast who are moving down south to places like Atlanta and Miami.

Thriving in Small & Mid-Sized Markets 

It’s often said that boutique fitness only works on the coasts and in America’s largest cities, where people are drawn to flashy concepts and are more willing to spend their disposable income on wellness experiences. That’s not a sentiment the Solidcore brass agrees with; they believe the brand’s dynamic approach to Pilates works just as well in Fargo as it does in Flatiron. 

“One of the primary reasons I came to solidcore was because it was not a concept that only worked in the New York, D.C., LA and San Francisco markets; we have studios in North Dakota, Kentucky, Pittsburgh and other (small and mid-sized) markets that are amazing for us but are often overlooked,” Myers says. “We’re excited that we can be the outlet that doesn’t overlook those communities because they’re just as important to the health of this country.”

In addition to a scalable and highly refined economic model that allows it to place profitable studios in different geographic areas, Solidcore thrives in smaller markets because of the transformative power of its Pilates-inspired workout, Myers believes. 

“Our brand has never been about hype,” he reiterates. “It’s always been about delivering an amazingly effective product that gives you real results and is surrounded by an incredible community.”

Looking beyond 2028 and even further into the future, Myers believes Solidcore can potentially aim significantly higher than 250 locations. 

“We believe within this country that the number can be north of 1,000,” Myers says of how many studios Solidcore can open in the U.S. “That comes from the operating model that we have perfected over the years, which allows us to operate in New York City and LA, but also in Pittsburgh, Charlotte, North Carolina, and Fargo, North Dakota.”

The post Solidcore Eyes Major Expansion With Fresh Take on Pilates appeared first on Athletech News.

Christian Toetzke’s mission is ambitious but rather simple: create a global, mass-participation event where gym-goers can compete against each other in the same way as marathon runners, triathletes and cyclists.

He calls it the “marathon of fitness.” 

Leveraging the expertise he gained over a decades-long career staging mass-participation endurance events like triathlons, marathons and cycling races, Toetzke created Hyrox in 2017 after seeing a gap in the market for a similar type of race for gym-goers. 

Since staging its first “fitness race” in 2018, the Germany-baseed Hyrox has grown into a worldwide brand. It currently hosts events in upwards of 60 cities around the world, drawing nearly 200,000 fitness enthusiasts eager to test themselves in feats of endurance and functional strength.

Hyrox races are typically held indoors in large exhibition halls, and feature eight cycles of one-kilometer runs, each of which is broken up by a functional workout where participants perform movements like sled pushes, farmer’s carries and sandbag lunges. Similar to a marathon, every Hyrox race is the same and is performed for time, so participants can compete against themselves and others across the world. 

Toetzke, founder and CEO of Hyrox, spoke with Athletech News about what inspired him to create the fitness race, his plans to host events in virtually every big city around the world, and how the brand is helping gyms train Hyrox participants.

Athletech News: Can you tell us about your career in mass-participation events and why you decided to create Hyrox?

Christian Toetzke: I’ve created mass-participation endurance events – marathons, triathlons, cycling – all across the world, including some very big ones. I sold my previous company (Upsolut Sports AG) to a French media giant (Lagardere Sports, whose endurance division was eventually acquired by Ironman Group), and switched over to the corporate side for a bit as part of that agreement. That was a multi-billion dollar company, and I was responsible for all the events they acquired, which came to include not only mass-participation events but also golf tournaments, tennis tournaments, soccer friendly games, etc. It was a truly global operation, and I learned a lot about putting on events in different parts of the world. 

But in my heart, I was always more of an entrepreneur. So I left the corporate world and started to develop the idea for a fitness event based on my background in mass-participation endurance events. I’ve always loved the basic idea that you create something like a marathon event where you bring the best athletes in the world together with very average people who do the same thing, on the same course, on the same day. But with endurance events, you never really train your upper body or your muscular endurance. I thought there was a big gap in the market – you see around two hundred million people going into gyms every day, but there was no competition that was really based on what most of the people are doing in the gym. Drawing from my time staging all sorts of mass-participation events, I put everything together, took the best out of every concept and created something new, which was Hyrox. We staged our first event in 2018.

ATN: What separates Hyrox from not just marathons and triathlons, but fitness-focused events like CrossFit or Tough Mudder?

CT: Hyrox is based on what people do in the gym – we’re using sets and things like dumbbells, sandbags and med balls. So it’s fundamentally different to triathlons or obstacle-course racing, where you don’t need to train in the gym. CrossFit is the only existing sport that’s based on gym equipment, but it’s fundamentally different (from Hyrox) because CrossFit is not a mass-presentation event. Its main events are where the top athletes in the world come together to do stuff no one else can do, like handstand walks or muscle-ups.  Our workouts are all based on natural movements that anyone can do. If you’ve never pushed a sled in your life, for example, you can push it. You might not be very fast, but you can’t really do something fundamentally wrong. You definitely can’t snatch a barbell if you’ve never done it before, since it’s an unnatural movement. Using natural movements creates a foundation for a true mass-participation event.

Another key part is that Hyrox is based on time, like marathon running. Finishing a Hyrox race in a world-record time of 54 minutes is one of the hardest things in the world, and very complex to train for it. If you want to finish it in two hours and 30 minutes, it’s a different game and easier to do, though it’s still hard. That keeps people motivated and in the game.

ATN: What’s Hyrox’s growth trajectory been like since staging its first event five years ago?

CT: We are growing very, very fast, and it’s important to remember, we started 2018 and there was this “little” incident – COVID – which stopped us for basically two years. We run mass-participation indoor events, which couldn’t have been worse during the pandemic. So in reality we’re in season four, not season six. Since the pandemic ended globally, we’ve restarted and have been growing all over Europe, the U.S. and most of Asia – we launched in Australia, Hong Kong and Singapore. Next year, we’re growing to China, South Korea, Japan and Taiwan. Elsewhere, we’ll have our first events in Mexico and South Africa. So there’s only India and South America left. 

ATN: Why has Hyrox caught on with fitness enthusiasts from different parts of the world?

CT: The beautiful thing is that fitness seems to be a very global language. When you walk into a gym in China, it looks basically the same as when you walk into a gym in New York, Madrid or Stockholm. People train in pretty much the same way, with the same equipment. And we have amazing events already in 60 major cities across the world, so you can travel to a lot of very attractive cities to do Hyrox and enjoy a weekend-long trip, which is also what has made marathon events so effective. But we’re indoors, so you know the weather is always the same, and you don’t need to worry about rain or cold or heat.

ATN: Hyrox stages events in cities across the U.S., including a special upcoming race in New York City in June 2024. How important is the American market to Hyrox’s global expansion plans?

CT: We started in the U.S. in 2019 with New York, Miami and Chicago, but then we had to stop because of the pandemic. Since we restarted, we’ve been nearly doubling our (participation) numbers every year. We think New York will be our first sold-out event (in the U.S.). New York was always our strongest market, but last year we staged the event in the Meadowlands (New Jersey). Now we’ll really be in Manhattan, at Pier 76, a new venue on Hudson River Park with amazing views of the skyline. This will be our first indoor-outdoor event. Participants will run outside, but the workouts are covered in tented areas. We’re expecting between 4,000 and 5,000 people, which will be a new milestone for us in the U.S. (some of Hyrox’s European events draw over 10,000 participants).

New York is important for us because in America, we need to show people this is a next-level, major event. We want to be the New York City Marathon of fitness. After New York, we will really have arrived in the U.S. market, which is still the most competitive, the biggest sports market in the world.

ATN: Hyrox has a booming affiliate gym program. Why is partnering with gyms and fitness studios important for the brand?

CT: We want to provide a service to gyms to make it as easy as possible for them to integrate attractive, athletic Hyrox group class training into their programming. We’re hoping over the next few months to launch a website that provides affiliate gyms with education on how they can use Hyrox group-class training to win new members or retain current members by motivating them. That’s a big game-changer for us. Every day, we’ll be posting a new group class training workout. The coach can click on a video and view a description where we explain in full detail why we’re doing that training on that day. It includes a full rundown for a 60-minute class, with warm-up and every movement – you can even click on the movements to learn more about them. There’s a filter system as well, so if a gym doesn’t have skiers or other equipment, it will only show workouts where you don’t need that equipment. We’ll be doing this for thousands of gyms around the world. 

ATN: How big can Hyrox become in terms of the number of events staged and total race participants?

CT: We’ve even surprised ourselves because at the moment we are almost doubling our (participation) numbers every year. This season we will have 175,000 to 180,000 athletes doing our events. Our game plans to grow to 150 to 170 events in the 150 to 170 most attractive cities in the world. We believe we will have a million people actively participating in our events every year. That number will be significantly higher if you count people training Hyrox-style in gyms.

I also think there will be a growing community of other fitness-racing events popping up that follow our same logic, but that are done by other organizers. We want to deliver the gold standard of fitness racing events, similar to what marathons are for running. If you think about New York, you have 100 races a year but there’s only one New York City Marathon. Our job is to produce the New York City Marathon of fitness. 

The post CEO Corner: Hyrox’s Christian Toetzke on the ‘Marathon of Fitness’ appeared first on Athletech News.

This article is part of ATN’s DISRUPT 2023 video series, which features key conversations with executives from the most successful brands in fitness and wellness. To watch more videos, click here

The general appetite for investing in fitness and wellness companies has cooled off quite a bit from its pandemic-era high, although the long-term prognosis for the space remains strong, according to industry experts. 

Speaking during Athletech News’ DISRUPT 2023 video series, three leaders in the private equity and venture capital spaces – Jon Canarick of North Castle Partners, Mark Grabowski of Snapdragon Capital Partners and Lance Dietz of KB Partners – gave their thoughts on the current landscape of the fitness and wellness market, including which sectors are best poised for growth despite a cloudy macroeconomic environment. 

The Fall of At-Home Fitness

Overall, the investors agreed there was too much buying in the fitness and wellness space during COVID, especially of at-home fitness companies, which has caused a lot of financial tumult and sent valuations tumbling in recent months. 

“There was way too much investing in the space by a factor of five, or something to that effect, particularly, of course, in the home fitness category,” Canarick said, noting that pandemic-era investments “were probably beyond the scale and scope of what was economically feasible for the category. As a result, you have billions and billions of dollars of burned capital that are underwater all throughout the home fitness part of the space.”

Confidence in at-home fitness companies during the pandemic likely reflected many investors’ predictions about what the long-term effects of the pandemic would be on people’s workout preferences. 

“I think there was overconfidence that this (was) a whole new world, people are all going to be working from home, there’s going to be more remote work, (and) people are going to want to now work out at home and not go back to the gym,” Grabowski said. 

Brick-and-Mortar Fitness Is Back

It’s certainly not all bad for the fitness and wellness industry post-pandemic. The flip side of the at-home fitness debacle is that in-person experiences are booming as people seek social interaction in gyms and studios.

“People had habits that they’re going back to,” Dietz said. “We think in-person experiences are very valuable to human nature so you see a lot of people going back to brick-and-mortar.”

Canarick agreed that we’re witnessing a “really strong recovery of brick-and-mortar fitness,” but he noted that hybrid fitness is likely here to stay as many consumers now prefer a blend of working out in person and at home.

“Peloton has had their fair share of challenges but they still have gained an enormous market share of monthly workouts,” Canarick said by way of example.

As people return to in-person activities, the concept of “community” is more important than ever, Dietz believes. Fitness and wellness businesses that are able to build products and services that foster connection are more likely to be attractive to investment firms in the current environment.

“It’s a buzzword at times, but it’s also one that I think has a meaningful impact on long-term value for the user experience,” Dietz said of the power of community.  

“Where community can address loneliness and the ability to be a bit healthier because you have people around you I think is a really interesting opportunity,” he added.

The Newcomers: Recovery, Fitness Trackers & Preventative Wellness

As for what areas of fitness and wellness could be targets for increased investment moving forward, the investors identified three sectors: recovery, health and fitness trackers, and preventative wellness.

Recovery tools are moving from the niche to the mainstream thanks to the direct-to-consumer success of companies like Hyperice and Therabody and the proliferation of modalities like cold plunge, infrared sauna and cryotherapy. 

Canarick expressed excitement about the growth potential of the recovery sector as tools once only available for professional athletes find their way into the hands of the masses, although he said there may be a cap on how big the market can get. 

“There’s still a question as to the size of that market from a profitability standpoint,” Canarick said of the recovery space.

Another hot category figures to be health and fitness trackers, driven by the sudden popularity of companies like Oura, Whoop and others. However, Canarick again urged some caution since it’s unclear whether trackers will be able to gain market share with non-fitness enthusiasts, which is still most of the population.

Grabowski believes the market for health and fitness trackers could really take off, especially as consumers increasingly embrace what he calls “preventative wellness” over traditional healthcare or sickcare. 

Trackers have the ability to reach consumers outside the athlete or weekend warrior population if they’re used to help everyday people track important health metrics, Grabowski noted.

“When you think of everything from blood testing to stool samples, there you’re actually addressing some different issues,” he said. “It’s not about, ‘Am I optimizing my workout performance?’ It’s about allergies, chronic issues, immune responses and other things that people are dealing with.” 

Long-Term Outlook Is Positive

Overall, while the market isn’t what it was pre-COVID or during the pandemic thanks to macroeconomic conditions and general global uncertainty, there’s still reason to be optimistic about the financial “health” of health, fitness and wellness, the investors believe. 

“I think almost universally there’s growth in consumer expenditure in health and wellness across multiple categories,” Grabowski said, noting that the industry as a whole is on an “upward trajectory” and most sectors are at or are approaching pre-COVID levels.

That’s not to say growth capital will be easy to come by, at least in the short term. To make themselves attractive investment candidates in the current fraught economic environment, fitness and wellness businesses will need to show they have executive teams who can adapt to change.

“If it’s not the pandemic, then it’s inflation. If it’s not inflation, you’ve got what’s going on geopolitically,” Grabowski noted. “So I think seeing senior management teams who have proven adaptability, there’s an even bigger premium. One-note players are not as backable.”

The post Fitness & Wellness Market Healthy Despite Post-Pandemic Woes, Investors Say appeared first on Athletech News.

The fitness industry is very much in the early stages of its encounter with artificial intelligence, but some brands are already working on innovative and potentially paradigm-shifting workout products.

Moawia Eldeeb, co-founder and CEO of smart home gym company Tempo, is harnessing the power of AI to transform the way people strength train. A computer science major at Columbia University and a former personal trainer, Eldeeb co-founded Tempo in 2015 to democratize access to high-quality personal training through AI. 

With the Tempo system, users get access to a set of smart weights – dumbbells and a barbell – that are tracked by AI-powered sensors. The sensors track the way your body moves during exercises, allowing Tempo to deliver real-time feedback on form. The company also uses AI and biometric data to create personalized daily workout plans, among other features.

Tempo has become one of the hottest brands in the home gym space, raising $220 million in a Series C round in 2021 to help it scale and create new products. 

Athletech News spoke with Eldeeb about what separates Tempo from other smart home gym brands, how the company uses AI to personalize strength training, and what could be coming next for the brand. 

The following conversation has been lightly edited for clarity and length.

Athletech News: You have an inspiring story. Can you tell us about your background and why you decided to create Tempo?

Moawia Eldeeb: Our mission at Tempo has always been to make personal training and fitness more accessible, and the impact personal training had on my life when I was younger is a big inspiration for that. I was born in Egypt and moved to New York City when I was in third grade. My family became homeless when I was in middle school, and the trainers at my local YMCA agreed to train me if I focused on school. It was with their help that I excelled academically and fully understood the impact fitness could have on someone. 

I ended up attending Columbia to study computer science, and also secured a job as a personal trainer while I was in school. During my time at Columbia, I met Josh Augustin, and together we co-founded Tempo. I realized that one-on-one, personalized training and guidance was unattainable for most people, and sought to fill that gap by combining AI and weightlifting to create the only at-home fitness solution with a built-in personal trainer.

ATN: What separates Tempo from its competitors in the smart home gym space, particularly those focused on strength training?

ME: With other connected fitness and smart home tech, users put in a lot of effort but struggle to see actual results. It’s only when you combine AI, biometry and the human connection that people will see the consistency and results they’ve been seeking, and that’s what Tempo does.

Beyond a “smart” piece of gym equipment with a screen, what makes training so effective is getting highly personalized guidance before, during and after. Tempo offers this by leveraging biometric data to create a daily workout experience completely tailored to you. Tempo then responds to your real-time performance to provide feedback that maximizes your time on the mat and to suggest the right recovery for your body to reach your goals. 

As a personal trainer, Tempo takes it one step further by counting reps, tracking speed and providing personalized weight-lifting recommendations. With the mix of human-led training and AI technology, Tempo makes progress and efficiency more attainable than any of its competitors.

ATN: What’s been the biggest challenge in scaling Tempo over the last several years?

MW: One of the biggest challenges has been adapting to the major lifestyle shift that came from moving through the COVID era to today. We haven’t seen a complete bounce-back to the pre-pandemic days, and I don’t think we’ll fully return to that way of living. Many people now have hybrid or fully remote workplaces and are enjoying greater flexibility in their schedules. Because of that, we’ll continue to evolve Tempo so we can provide you with a training experience that offers flexibility, convenience and ease – regardless of your lifestyle.

ATN: Tempo recently released a series of new features to make workouts even more personalized and adaptable. How far along is Tempo on its mission to build the world’s best personal trainer?

ME: I firmly believe that with Tempo, you’ll get the world’s best training experience available today. We know that streaming great workout content is simply not enough to help people to see progress. Results are what get people hooked on fitness and ultimately improving their overall health and longevity, so we set out to build an entirely new way of working out, with training plans that could guarantee faster results by focusing your training on target areas over the course of a 4-week period. Tempo now brings together real-time biometric data, AI, fitness science and human-led training to deliver adaptable training plans, a “Readiness Score,” and the most effective workout for you that day. What you get with Tempo is a training experience that is truly customized and responsive to you in real-time. 

But that doesn’t mean our work stops here. Down the line, I envision Tempo being integrated into your daily life. This means building Tempo into the most effective fitness and health companion that’s as individualized as one-on-one personal training, but far more convenient and affordable.

ATN: Is Tempo in competition with brick-and-mortar gyms and studios or can it be complementary?

ME: It’s absolutely complementary. Strength is at the core of all performance-based activities as well as everyday life, which makes Tempo’s strength training ideal for any fitness journey. While Tempo brings personal training into your home, we don’t identify as a home gym company; we’re a fitness company. 

Our products have evolved to go with our members – whether that’s to the gym or while traveling. With the Tempo Core and app, strength training is now in the palm of your hand with the powerful portable device. Wherever you are, Tempo brings personalized training to you to help you meet your goals, while adapting to your needs.

ATN: Will AI ever replace personal trainers?

ME: AI is driving this efficiency and can help support your fitness goals. But I don’t see it replacing personal training. AI alone can’t provide the human connection that people need when it comes to motivation, accountability and coaching. When you bring the two together – humans plus AI – that’s when you’ll see the consistency and results people are after.

ATN: What could we see next from Tempo in terms of innovation and new features?

ME: In the short term, we’re continuing to tweak and improve the training experience, making it as seamless and powerful for you as possible. We want to take out all the guessing and planning on our end, so all you need to do is show up and put your effort into the workout – not figuring out what you should do or what equipment you need. 

We’re working on using AI for more sophisticated movement tracking and training-plan creation based on your sleep scores and heart rate variability to tell you how ready you are to work out that day. We also know that body composition scanning is more beneficial for your fitness journey than a number on the scale, so we’re looking into integrating our in-app body scanning feature directly into a customized training plan for you.

We’re also looking at incorporating more health data such as nutrition, metabolism and beyond to build an even more comprehensive and customized health experience. 

The post CEO Corner: Tempo’s Moawia Eldeeb Is Changing Fitness With AI appeared first on Athletech News.

Self Esteem Brands (SEB) is best known as the parent company of Anytime Fitness, a highly popular gym chain with over 5,000 locations worldwide, but the franchisor is also building a burgeoning portfolio of boutique fitness and wellness brands as part of an ambitious global expansion plan. 

The Chuck Runyon and Dave Mortensen-founded Self Esteem Brands has set itself the lofty goal of opening 10,000 fitness, health and wellness clubs worldwide by 2030. Part of that plan will include scaling SEB’s boutique studio brands including The Bar Method, Waxing the City and Basecamp Fitness (along with Basecamp’s Australian sister brand, Sumhiit Fitness). 

Basecamp, which offers HIIT-style group fitness classes, has 21 locations already opened along with nearly 70 franchise licenses sold in the U.S. as of August. Basecamp is in what Self Esteem Brands calls “a high-growth phase,” recently becoming the first of SEB’s studio brands to offer franchising outside of the States. The Bar Method, meanwhile, has around 80 open locations; SEB plans to restart its expansion efforts for the Barre-inspired group fitness brand, which is now fully recovered from the pandemic. 

On the wellness side, SEB had much success with Waxing the City, which offers waxing services along with skin and beauty care products. Already the second largest waxing franchise in the U.S., Waxing the City has more than 150 locations open across the U.S. and is on pace to end 2023 by opening twice as many locations as it opened the previous year. 

Still, as Self Esteem Brands looks to build its boutique brands into household names, the company will lean on the power of its already established brand: Anytime Fitness.

The SEB Franchise Network

“One of the things that’s great about being a franchisee of any of our brands at SEB is that you have access to our global franchise network, which includes many resources across all of our brands,” says Nick Herrild, president of studio brands for SEB.

While some larger boutique fitness franchisors may also have several brands under their corporate umbrella, they don’t have access to the data of Anytime Fitness, a big-box gym with thousands of locations and nearly three million members spread across the globe.

“We really are a unique platform in that way,” Herrild says. “Because of the size and scale of AF and the resources of SEB, we have a level of sophistication each of the brands couldn’t have if they stood on their own.”

Self Esteem Brands is actively investing in offering its boutique franchisees access to the same data and insights Anytime Fitness franchise owners have. For example, SEB has compiled robust consumer segmentation metrics that it uses to help inform its franchising strategy for each individual brand. That data helps SEB and its franchisees evaluate the opportunities and likelihood of success for different boutique brands in different areas. 

“Basecamp may tap into that segmentation differently than The Bar Method, but the segmentation is still consistent, so we know where there’s overlap and where there isn’t,” Herrild says.

SEB also offers “analytical scoring sites,” giving franchisees intel on how potential locations would perform based on attributes like population, income and gender distribution, among other demographics.

The advantages of franchising with a big brand like SEB extend across the board, Herrild notes, including marketing, development, real estate and even preferential access to vendors. 

“We can get better pricing and better technology opportunities because of our scale,” he says.

Brands Are Complimentary, Not Competitive

As SEB looks for ways to continue growing its boutique fitness and wellness brands, expect the company to lean on its already established network of Anytime Fitness franchisees.

SEB is starting to see interest from Anytime Fitness franchise owners who are drawn to the community-driven atmosphere of boutique studios and want to get in on the action.

“We have Anytime Fitness franchisees who are highly interested in the studio concepts for that reason,” Herrild shares. “There’s a lot of opportunity, particularly for brands like Basecamp and The Bar Method, to target sophisticated owners that want to look at a multi-unit portfolio.” 

Right now, most cross-company franchising interest is between Anytime Fitness and Basecamp, Herrild says, but he expects interest to grow among franchisees who want to try other SEB combinations.

For franchisees looking to get adventurous, there are benefits of owning two different boutique brands under the SEB umbrella, since concepts are complimentary in terms of the types of customers they attract but not competitive in the services on offer.

“A Waxing the City and Bar Method location could literally be sharing a wall yet have complete insulation from each other in terms of what they’re offering,” Herrild notes. “But they would still have access to each other’s consumers because they’re similar.”

Sharing Best Practices

Operationally, having multiple brands under the same umbrella allows SEB to test new things, finding what works for one brand to bring those learnings over to the others. 

For example, SEB has been rolling out several new tech innovations at Waxing the City, including mobile POS systems, geofencing and automated check-ins and check-outs for members. Herrild says it’s all part of the company’s overall philosophy of leveraging tech to lower labor costs and streamline operations at its studios, which makes things easier for franchisees and customers alike. 

The team at SEB chose Waxing the City to pilot those innovations because of the brand’s relatively large size with 150-plus locations, but it’s transporting those same tech learnings to Basecamp and The Bar Method. 

“Using Basecamp as an example, we’ve re-worked how we coordinate the start of the workout with the lighting, the music and the monitor, so each member knows exactly which group they’re in and which workout they’re doing,” Herrild notes.

Inter-brand collaborations are important, but the team at SEB also works hard to ensure it’s supporting its franchisees down to the individual level, including with monthly check-in conversations.

“By brand, we have franchise business consultants and franchise business coaches,” Herrild says. “They work with franchisees to help them look at their business and benchmark different pieces of their P&L to help them understand where they have the opportunity to drive profitability from the top line to the bottom.”

The robust approach to the business of franchising is likely why the team at SEB feels confident it can meet its goal of 10,000 clubs by the end of the decade. Post-pandemic, the company assures it’s doing better than ever, with a healthy franchise culture to match.

“We’re having a really great 2023, and we had a really great 2022 fiscal year,” Herrild says. “Our brands are all in the process of looking for ways to bring franchisees the best performance they can and grow, so we’re excited about where all of our brands are and where they’re going.”

The post How Self Esteem Brands Drives Boutique Studio Growth appeared first on Athletech News.

This article is part of ATN’s DISRUPT 2023 video series, which features key conversations with executives from the most successful brands in fitness and wellness. To watch more videos, click here

While people have returned to in-person fitness in larger numbers than some industry experts predicted during the throes of the pandemic, the reality is that gyms and studios are facing stiff competition not just from each other, but from the many digital options today’s consumers have.

To attract and retain members in a world teeming with workout options, operators will need to leverage space, technology and wellness services in innovative and engaging ways.

“It’s about building these immersive environments where it’s worth the price of inconvenience to get there,” summarized Bryan Green, founder and CEO of Aktiv Solutions, a leading commercial and home gym design company.

Here are a few ways facilities can go about creating those immersive environments, according to Green and three other fitness and wellness industry executives, all of whom shared the virtual stage during the “Gym of the Future” panel at DISRUPT 2023 presented by Athletech News.

Create ‘Energy & Atmosphere’ Through Physical Space

Gone are the days of the big-box gym filled to the brim with cardio machines and single-exercise strength training equipment. The gym of the future is open, with less equipment and more room for community and connection.

“The industry has gone through a major shift post-COVID, probably 25 to 30%, maybe even 35%, of the cardio equipment is either not being used or has been removed,” noted Jeff Esswein, vice president of business development commercial sales U.S. and Canada for Freemotion Fitness. “When you look at the commercial setting, … there’s been a lot more focus on movement, functional training and strength training.”

Green, too, has noticed a “tremendous thinning out of equipment” at fitness facilities, which are increasingly favoring functional training spaces with large, open floor plans.

This change in layout is partly due to the rising popularity of strength training, Green notes. But he says it presents an opportunity for gyms to create engaging spaces for their members to interact with personal trainers and other gym goers, mimicking some of the community aspects commonly found in boutique fitness settings. 

“Energy begets energy,” Green notes. “Getting people together, not necessarily training together in the same class per se, but training amongst each other, creating that collective energy … but also a sense of purpose and reason.” 

Gyms should take advantage of open spaces on the fitness floor by encouraging personal trainers to offer live guidance to members, Green advises. If live guidance isn’t possible, operators should look to offer virtual coaching through tools like digital screens, he says.

“Opening up floor plans, creating a guided solution, and creating atmosphere and experience, ultimately, are the keys,” Green says of how operators can compete in the modern fitness world. 

Leverage Wellness & Recovery 

Wellness continues to play a bigger and bigger role in the lives of everyday people, especially fitness enthusiasts, who are increasingly attuned to the latest in recovery, longevity and holistic health.

Star Sage, senior director of business development at Hyperice, notes that gyms can drive engagement by giving their members access to Hyperice’s high-tech recovery products, the same tools that are used by pro athletes like Patrick Mahomes.

“The same feeling that you get in a professional training locker room, why can’t that be in a fitness facility?” Sage said. 

Gyms can use Hyperice products as part of a normal membership plan, as a personal training perk or even as an a la carte option to drive extra attendance, Sage suggested. 

“We started to see that (operators) are charging by the minute for a Normatec compression session, people are jumping in for 30 dollars for 30 minutes, and are coming in now (to the gym) two or three times a day.”

Sage even floated the idea of “recovery nights,” where fitness facilities plan entire events around giving members access to recovery products. 

“It’s getting back to this community base of people having fun with our products like a locker-room style, where you’re not just going to a bar,” Sage said, noting that alcohol consumption rates are lower among Gen Z, a generation that’s leading the wellness push.

Green agreed that modern fitness facilities must offer their members wellness options in order to stay competitive. He identified hot and cold therapies like sauna and cold plunge baths as other wellness modalities gyms can look to add. 

“Beyond the exercise realm, you’re not relevant today if you’re not (part of) the total solution for wellness,” Green said. 

Embrace Digital Content 

It should be no surprise that the “gym of the future” will be heavily influenced by technology, especially digital fitness content, which proliferated during COVID and has emerged as one of the pandemic’s lasting effects on the industry. 

Alex Isaly, vice president of programming and head of content at Xponential Fitness, spoke about how the boutique fitness franchisor is embracing digital content. Xponential has leaned heavily into XPlus, its on-demand solution that allows people to watch digital workout content from brands like Club Pilates, StretchLab and Pure Barre.

Isaly noted that Xponential views digital content not as an end in and of itself, but as a means to get more people familiar with its boutique fitness brands to ultimately drive class attendance inside the four walls of the studio. 

“With Xponential, it’s really important to understand that this is not about an in-real-life experience versus a digital experience,” he said. “We see our digital offering really as an extension and a value-add to our members and our franchise partners.”

Esswein also pointed to the importance of digital content as a way for operators to engage their members even when they’re inside the four walls of the facility. Freemotion’s cardio equipment comes loaded with iFit workout content, so gyms can create a user experience that’s more engaging than traditional machines.

“Freemotion is really a content delivery company,” Esswein said. “And we’ve seen our iFit content play a big role in that, to where an individual can be engaged in their experience (at the gym).”

Whether it’s through digital content, wellness and recovery services, or manipulating physical space, operators should focus on engaging their members above all else.

“What can we offer differently to help provide a solution that’s experiential or that’s engaging?” Esswein said. “Because at the end of the day, everybody wants the member to be engaged in whatever they’re doing.”

The post The Gym of the Future Must Be ‘Immersive,’ Fitness Execs Say appeared first on Athletech News.

Bill McMenamy isn’t exactly a stranger to the fitness industry, having served a brief stint as CEO of US Fitness Holdings LLC, but his background is mostly as an executive with top retail brands including Gap, Five Below and Adidas.

In February 2022, McMenamy took over as CEO of New York Sports Club, tasked with breathing new life into the 50-year-old brand which is loved among New Yorkers but also operates a network of over 50 clubs across six states and two countries (U.S. and Switzerland).

In an effort to capitalize on its strong ties to NYC, earlier this year, NYSC rebranded nearly all of its clubs, including its gyms in Philadelphia, Washington, D.C., and Boston, under the “New York Sports Club” name. That meant jettisoning monikers like “Boston Sports Club,” which had been used at regional facilities. 

Aside from the rebrand, under McMenamy’s watch, NYSC has also struck partnerships with Garmin and Under Armour, and acquired Fhitting Room, an NYC-based boutique fitness concept, which has been added into NYSC’s Upper East Side location and will be rolled out in other facilities.

McMenamy spoke with Athletech News about the rebranding effort, his strategy to make NYSC more appealing to modern fitness consumers and what’s in store for the future. 

The following conversation has been lightly edited for clarity and length 

Athletech News: Your background is mostly as an executive with top retail companies. What is it about New York Sports Club that convinced you to get back into the fitness industry?

Bill McMenamy: Health and wellness is a passion. When the New Sports Club opportunity came my way, I was incredibly curious. The New York Sports Club brand has been an iconic wordmark in the fitness industry for 50 years, and like many brands, there have been ups and downs. However, as I started discussing the brand and this opportunity with others, it was clear that although there were challenges, most people wanted this brand to win.

The most important factors that stood out to me were the team and the clubs. We have an amazing team, with many team members having been with us for 20-plus years. When I initially accepted this challenge, I spent most of my time in clubs listening and learning. Our team is incredible, and they deserve to see this brand be successful again.

ATN: What have your early priorities been as CEO of NYSC?

BM: Almost nothing had changed in New York Sports Clubs in decades, so we began by changing the way we do business, and in a short amount of time we took an aggressive approach to reimagine this iconic brand. We invested in our physical spaces, refreshing and renovating clubs to include new equipment and enhanced experiences, such as recovery lounges, expanded functional training and barbell areas, and dedicated performance labs for personal training sessions. To date, we have improved almost half of our clubs. We upgraded our member management system, introduced a member-facing mobile app and are launching a new website next month. In addition to implementing member-friendly month-to-month membership options, we also placed a large focus on community building and member engagement. Our “MY Sports Club” campaign, for example, highlights at least one member or team member in our monthly member newsletter, on our social feed and in our clubs. 

In an effort to accelerate the brand turnaround, we also acquired leading NYC-based boutique fitness brand Fhitting Room. We wanted to bring a new NYSC concept to our members, one that centers around high performance and social fitness, and we saw Fhitting Room as a key component as they offer one of the best boutique concepts with a talented team that is unmatched in the boutique fitness industry.

ATN: Why did NYSC decide to rebrand most of its clubs around the country under the “New York Sports Club” name?

BM: The New York Sports Club brand is iconic, regardless of where we travel. Everyone knows NYSC either through having a membership or knowing someone who was a member, so the wordmark is strong in the fitness industry. At one point we were managing six different brands with different operating models, and in a world of digital marketing and economies of scale, it became very challenging to manage. It really didn’t make much sense to not leverage our size and scale and bring all of our brands under the New York Sports Club banner. 

In addition, the pandemic gave rise to a generation of digital nomads in the workplace, and consistency across markets offers a big opportunity to serve members across geographic boundaries. There was also a notion that we are stronger together coming out of the pandemic and it felt like an ideal time to bring all brands together under the one name.

ATN: There’s a lot of competition in the gym and health club space, especially in the Northeast. What separates NYSC from its competitors?

BM: Our goal is to provide the most value to our members. We offer everything members need and nothing that they don’t. We try to tailor the club experience to the communities we serve to truly be your neighborhood gym. As we reimagined the brand, we have created differentiated spaces within our four walls to allow the members to explore their fitness journey on their terms.

For example, post-pandemic, strength training has surged in popularity. Strength training with free weights was the number two trend (behind wearable technology) in the annual ACSM Health & Fitness Journal survey for 2023, yet many health clubs do not provide weights over 50 pounds. At NYSC, we do provide weights over 50 pounds and have invested in a section of our clubs we call the Barbell Club as well as our Functional Training space. We understand that weightlifting is an important feature to our members, and want to continue to cater to our members’ needs.

ATN: NYSC has done some notable deals under your watch, including acquiring Fhitting Room and partnering with Garmin and Under Armour. What’s the strategy behind those moves?

BM: At the end of the day, this is a relationship-driven business and for us, it’s about culture and fit. We want to partner with other like-minded brands that share our mission, which is to “Improve Lives Through Fitness.”

Fhitting Room provided us an opportunity to partner with industry-best talent, filling voids and gaps we had, and, of course, obtaining the best boutique fitness experience in the market today. Combining the strength of our brands by leveraging our real estate portfolio and Fhitting Room’s expertise in brand building, programming, community and trainer development has allowed us to deliver a compelling offer and stand out in the fitness marketplace.

Partnerships are important to us because they are driven by the goal of community and member engagement. Our partnership with Garmin, for example, was a “Summer in the Gym + Win” Challenge that got members involved in a fun fitness challenge with amazing Garmin prizes. Additionally, partnerships have helped bring us into retail. We partnered with Under Armour for our “Fit On The Garden” free outdoor workout series in Boston, which was promoted inside their store for very prominent co-branding.

ATN: What’s the biggest challenge facing large gyms and clubs today, and how can you overcome it?

BM: For many years it was enough to have lots of cardio, selectorized equipment and a group exercise offer. Members today are well-versed in fitness and invested in their overall health and well-being, and we need to meet members where they are. This requires us to evolve, anticipate trends, and understand not only where the member is today, but what they will expect from us tomorrow. Through a diverse product offer and a clear and concise member journey, we have been able to meet our members’ needs. That said, we continue to challenge the status quo and push ourselves outside of our comfort zone to ensure we are meeting members’ expectations.

ATN: What are your most important long-term goals for NYSC over the next few years, and could expansion be on the horizon?

BM: First and foremost, we need to earn the right to service our members and communities. If we do that well, there are a number of interesting markets that we believe the New York Sports Club brand would thrive in.

Our goal is to deliver value to our members, giving them everything they need to achieve their fitness goals and nothing they don’t so we can continue to be the most accessible full-service offering in the markets we serve. We want to play an active role in helping our members and the communities we serve “Improve Their Lives Through Fitness.” If we are successful at this simplified task, we believe there is incredible opportunity for New York Sports Club.  

The post CEO Corner: Bill McMenamy on Rebuilding New York Sports Club appeared first on Athletech News.

This article is part of ATN’s DISRUPT 2023 video series, which features key conversations with executives from the most successful brands in fitness and wellness. To watch more videos, click here

Xponential Fitness is the world’s largest franchisor of boutique fitness brands, but it’s been a while since the company has made acquisition headlines.

That could soon be changing, according to Anthony Geisler, Xponential’s founder and CEO.

Speaking with Athletech News as part of DISRUPT 2023, Geisler confirmed that Xponential is in talks with several potential acquisition targets about becoming the 11th brand under the boutique fitness franchisor’s umbrella.

“Today I’m talking to about half a dozen different companies and probably three or four different (fitness and wellness) modalities, really trying to figure out who is the best fit for us,” Geisler told ATN founder and CEO Edward Hertzman during a one-on-one conversation.

Nothing is imminent, Geisler stressed, but he said Xponential’s interest in buying an 11th brand comes as there’s a renewed appetite for deal-making on Wall Street.  

“If we were a private company, we’d probably have 12 or 13 brands today, because I’d own 100% of it and I’d just be (acting) as a steward of my own capital,” Geisler said. “But being public and having to be a steward of tens of thousands of people’s hard-earned dollars in the public market, it means we need to listen to those investors.”

For a while, those investors were urging caution amid broader macroeconomic concerns, Geisler shared, which forced Xponential to pull back on any expansion talks – the company hasn’t acquired a brand since it bought BFT in October 2021 for $44 million. 

“Over the last four to six weeks, investors have been changing their tune,” Geisler said. “Now the first question and about 80% of the volume of questions I get are around, ‘Where is the 11th brand?’” 

Xponential’s Supply Crunch

The timing is right for Xponential to expand its portfolio of boutique fitness businesses, Geisler said, noting that as successful as the company’s 10 current brands are, there’s a cap on how many Club Pilates or StretchLab locations the world can fit without driving profits down for other franchise owners. 

That’s not to say Xponential’s current brands will stop opening new locations, they just won’t be able to do so at the same incredible rate they have in years past.

Geisler noted that Xponential sold 1,000 franchise units in 2022, but is on pace to sell only between 600 to 800 in 2023. That’s not because consumer demand for boutique fitness is falling, it’s because there’s not enough quality land for Xponential to keep opening studio locations among its current brands. 

“We’re running out of supply,” Geisler said. “So we will need to acquire an 11 brand to get supply back and be able to fill the demand that we have.”

Wellness & Recovery Are Top of Mind

As for what kind of brand Xponential might buy, Geisler believes there are many potential options, but he singled out wellness and recovery as an increasingly popular sector the company might look to tap into. 

“I continue to get more and more sold on wellness and recovery,” Geisler said. 

In terms of specific recovery modalities, the Xponential founder said he’s not sold yet on the long-term business viability of infrared sauna and cryotherapy, but he’s open to changing his mind. 

“Hydration, for instance, I wasn’t sold on that a few years ago and I’m sold on it now,” he said. 

If Xponential does acquire a recovery-focused brand, it will likely be one that focuses on a single core service rather than a suite of different wellness offerings. Buying someone like Restore Hyper Wellness, a quickly growing wellness brand that provides everything from red light therapy to hyperbaric chambers to IV drips, is likely off the table for Xponential. 

“We probably wouldn’t do anything expensive and complex like a Restore,” Geisler said of a potential acquisition.

However, he did give a preview of what Xponential’s 11th brand could look like in terms of franchise investment and the square footage of a typical location.

“In the $350,000 to $400,000 (required franchise investment) and 1,500 to 2,000 square foot box area is where we’ve done best, and that’s probably where we’ll stay,” he said.

Xponential’s 11th brand won’t necessarily be in wellness, though. There are plenty of fitness concepts the franchisor has yet to get its hands on. 

“There’s the ability in fitness to do things like bootcamps or high-intensity interval training,” Geisler said. “There’s other things we don’t have on the fitness side.”

The post Xponential Fitness in Talks To Acquire 11th Brand, CEO Confirms appeared first on Athletech News.

Dean Kelly knows a thing or two about building successful consumer brands in the digital era.

After creating a pair of app businesses and holding senior roles in Walmart’s e-commerce division and at online wedding registry Zola, Kelly took over as CEO of Gainful in February 2020, tasked with taking the personalized performance nutrition company to the next level.

Kelly quickly built on the impressive work done by founders Eric Ji Sun Wu and Jahaan Ansari, who created Gainful as a personalized protein company that allows users to take a quiz and receive a protein powder blend that’s customized to their needs, goals and preferences.

Under Kelly’s watch, Gainful raised $7.5 million in a Series A round in January 2021 and has expanded beyond protein into categories including pre-workout, creatine, fiber, collagen and hydration, all while staying true to the brand’s ethos of personalized nutrition. Gainful reached profitability in early 2023 and has seen over one million orders and counting placed on its website.

Kelly spoke with Athletech News about the power of personalized nutrition, Gainful’s groundbreaking retail partnership with Target, and what’s next for the brand in terms of new features, products and funding.

The following conversation has been lightly edited for clarity and length.

Athletech News: You came into this role with high-level experience as a founder and executive at top consumer brands. Why did you decide to join Gainful?

Dean Kelly: I’d been at a lot of big consumer companies, with big brands in really emotional categories, whether it be pets, weddings, furniture and homewares, or travel, and personalization has been a theme across my entire career. When Gainful approached me, I saw a really great opportunity to join a very young company with two incredible founders as the CEO in a category, health and wellness, where more and more people are spending more time and money. Personalization was being used as a vehicle in so many other categories, but it hadn’t really been done in this category, performance nutrition. I’ve stood in front of a wall of supplements in a GNC and been so confused, not knowing what the ingredients meant. So I had the same experience that our founders had.

ATN: Besides offering quizzes, how does Gainful make nutrition “personalized”?

DK: I view personalization as the feeling that a customer gets at the end of their experience with Gainful that makes them feel as if “Gainful is for me.” And it’s not only because of the products we’re recommending; the way that we talk to you is unique to you. We also bring in expert guidance from real RDs (registered dietitians) to help our customers with nutrition. It’s completely personalized, so it’s a real person responding to real people with real questions. Customers who use our RDSs retain 20 percentage points higher than customers who don’t. At the moment it’s email-based, but we’re moving into making it chat-based and text-based.

We’ve also started to work with content providers who are experts in their field, whether it be personal personal trainers, registered dieticians, etc. So the education and the content that we send you post-quiz is tailored to you. If you’re looking to build muscle versus lose weight, the education and content you get will be very different.

ATN: How does Gainful decide which supplements to sell?

DK: Gainful as a brand is about the individual, and removing barriers to that individual feeling their best, whatever those barriers are. There are brands out there that are quite niche. A vegan company can’t necessarily launch a Keto product, for example. The incredible thing about the Gainful brand is that we can go into any product in any multi-billion dollar category.

We started with protein because it’s an incredible base, most people don’t know how much they need and most people aren’t getting enough of it. But as you can see, we’ve started to add products and categories very selectively. Pre-workout, for example, there’s a huge crossover between a protein and a pre-workout customer. We then launched Boosts – collagen, fiber, creatine – that can be added to any of our products. And then we launched hydration as well.

If you can imagine where we’ll go next, Gainful is all about customization. You have a base protein, and then you can start to add Boosts, which might be gut health, menopause, prenatal, postnatal, cognitive, sleep, heart health or joint health. These are all categories we can go into under the umbrella of customization. We’ll be launching a brand new category in Q1 of next year.

ATN: Why did Gainful decide to partner with Target and enter the retail space?

DK: Target has over 1,800 stores nationwide, and 85% of the U.S. population shops in Target, so we saw it as a huge opportunity to attract a new customer and give that new customer a better experience, a more seamless and personalized experience, in an aisle that’s been pretty intimidating in the past.

ATN: How does Gainful bring a personalized experience to brick-and-mortar retail?

DK: Online, we taught customers how to shop a system for themselves. And we brought that behavior into the four walls of Target. When we launched at Target, we didn’t launch with just two products. We launched with 11 products and a very simple three-step process where customers can choose their base protein, they can choose a flavor, and then they can add a Goal Boost – build muscle, lose weight or recover. And you can combine those Goal Boosts and your flavor into the base protein, which is your customized protein. Also, on the lid of each of the protein packs (bought in Target) is a QR code that drives you to our registered dietitians. So we really are bringing personalized nutrition to everyone across the U.S.

ATN: Gainful is the official U.S. supplement and performance nutrition partner of Hyrox for the ‘23-24 race season. Why is this partnership important?

DK: One thing I love about Hyrox is that the races span ages, genders and athletic abilities. This is what Gainful recognizes, everyone is different, and therefore, everyone needs a personal approach not only to their training but to their nutrition. Also, Hyrox is incredibly big in Europe, and it’s coming to the U.S., so we thought it was incredible timing with an incredible partner who is trying to do something innovative. The third reason is because it’s becoming harder to acquire customers online and through Facebook and Instagram. For us, it’s less about putting a click-bait ad in front of a person. It’s about, Where are our customers when they’re not on Facebook and Instagram? They’re competing in Hyrox.

ATN: You’ve gone on record saying that Gainful is planning to raise another $20 to $30 million. Why is that investment important and what are your expansion plans?

DK: We’ve always been very capital efficient and very prioritized in what we do. We’ve never been one of those companies that’s over-raised, over-hired and then fired a lot of people. But now we’re at this point where we can expand our product range into new categories. We want to double down on retail – we’re further expanding in Target, and we have other retailers who approach us all the time. I get approached weekly by various people internationally about wanting to sell Gainful. We see a brand that could and should be global.

We want to build out our platform. We currently get a lot of our data from a quiz and we want to move that to make it more real-time. That involves building out an app, getting real-time data and connecting with different connected fitness partners. We also want to build brand awareness. We’re in the multiple tens of millions in revenue, and it’s now time to start telling the stories of Gainful, and that involves larger marketing budgets and top-of-funnel brand advertising, stuff that we’ve never done before.

These are all the things we want to do, and we want to find the right strategic partner who has seen numerous companies throughout this stage of growth and future stages.

The post CEO Corner: Gainful’s Dean Kelly on Personalized Nutrition appeared first on Athletech News.