zzz-a Archives - Athletech News The Homepage of the Fitness & Wellness Industry Tue, 31 Dec 2024 20:34:40 +0000 en-US hourly 1 https://wordpress.org/?v=6.6.1 https://athletechnews.com/wp-content/uploads/2021/08/ATHLETECH-FAVICON-KNOCKOUT-LRG-48x48.png zzz-a Archives - Athletech News 32 32 177284290 The Fitness & Wellness Trends To Watch in 2025 https://athletechnews.com/fitness-wellness-trends-longevity-strength-training/ Mon, 30 Dec 2024 14:00:00 +0000 https://athletechnews.com/?p=118521 ATN analyzes trends to watch in 2025, including the rise of longevity, the future of fitness wearables and strength training’s surge The global wellness market is projected to grow to nearly $9 trillion in 2028 as consumers embrace new ways of living, moving and being.   This is good news for the fitness industry, which is…

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ATN analyzes trends to watch in 2025, including the rise of longevity, the future of fitness wearables and strength training’s surge

The global wellness market is projected to grow to nearly $9 trillion in 2028 as consumers embrace new ways of living, moving and being.  

This is good news for the fitness industry, which is enjoying increased foot traffic at gyms and strong member engagement numbers, although getting more Americans involved in fitness remains a vexing problem.

The rise of longevity services, GLP-1 weight-loss drugs and holistic wellness presents massive opportunities for fitness brands, but also exposes the industry to increased competition from new entrants. Meanwhile, the popularity of strength training is reshaping the way gyms look across the globe, while the rise of AI begins to transform the way fitness brands do business.

To get you ready for a new year, Athletech News breaks down the top fitness and wellness trends to watch in 2025:

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The Fitness & Wellness Moves That Defined 2024 https://athletechnews.com/biggest-fitness-wellness-industry-moves/ Thu, 26 Dec 2024 14:00:00 +0000 https://athletechnews.com/?p=118269 These acquisitions, bankruptcies and CEO hires made headlines in 2024. They figure to impact the fitness and wellness industry for years to come The fitness and wellness industry is starting to settle into a post-pandemic rhythm, marked by people returning to gyms and studios in large numbers, a rising interest in longevity services and the…

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These acquisitions, bankruptcies and CEO hires made headlines in 2024. They figure to impact the fitness and wellness industry for years to come

The fitness and wellness industry is starting to settle into a post-pandemic rhythm, marked by people returning to gyms and studios in large numbers, a rising interest in longevity services and the surging popularity of modalities like strength training and Pilates.

This past year saw plenty of headlines, from major mergers to big-name brands filing for bankruptcy to CEO changes at the industry’s top companies. 

Athletech News recaps the eight fitness and wellness moves that defined 2024, and forecasts what each could mean as we enter a new year.

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The Biggest Fitness & Wellness Acquisitions of 2024 https://athletechnews.com/biggest-fitness-wellness-acquisitions/ Tue, 24 Dec 2024 14:01:00 +0000 https://athletechnews.com/?p=117100 ATN looks back at some of the industry’s biggest deals this year, which included major moves in gyms/studios, digital tech and fitness equipment As 2025 approaches, it’s a time for reflection. Here are some of the key mergers and acquisitions that have shaped the fitness, wellness, nutrition, and technology sectors this year: Gyms & Studios…

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ATN looks back at some of the industry’s biggest deals this year, which included major moves in gyms/studios, digital tech and fitness equipment

As 2025 approaches, it’s a time for reflection. Here are some of the key mergers and acquisitions that have shaped the fitness, wellness, nutrition, and technology sectors this year:

Gyms & Studios

The fitness and wellness industry witnessed one of its biggest merger deals in history earlier in 2024, with fitness franchise Orangetheory Fitness and Self Esteem Brands (the parent company of Anytime Fitness) leading the way. The two entities are now under newly formed holding company, Purpose Brands, which is led by former Topgolf CEO Tom Leverton.

exterior shot of an Orangetheory Fitness studio in Boca Raton, Florida
credit: Purpose Brands/Orangetheory Fitness

Genesis Health Clubs, a privately-owned health club operator, strengthened its presence this year after acquiring The Atlantic Club, giving Genesis a presence in the East Coast fitness market.

LA Fitness, meanwhile, acquired XSport Fitness in 2024, bolstering its footprint in New York, Chicago and Virginia with 35 gyms that will be rebranded under one of Fitness International’s (the parent company of LA Fitness) four brands.

Similarly, Virginia-based Acac Fitness & Wellness centers scooped up La Maison Health & Fitness, a family-owned fitness club that served Pennsylvania residents.

In October, World Fitness Services (WFS), the parent company of World Gym Taiwan, moved to acquire Los Angeles-based World Gym International, handing WFS total control of the entire World Gym network and positioning the brand for more global expansion.

New World Gym leaders John Caraccio (l) and Michael Sanciprian (credit: World Gym International)

Urban Gym Group (UGG) also joined the action, acquiring Sparring Partners Holdings, owners of the London-based boutique gym brand Gymbox, while 26North made a successful play for Onelife Fitness.

Rounding out 2024 is PureGym, a leading U.K. gym operator that beat out Planet Fitness to acquire 67 Blink Fitness gyms in New York, New Jersey and Pennsylvania. The gyms will be rebranded under the PureGym label in 2025, and a franchising model could be on the horizon.

An image depicting a group fitness workout at PureGym.
credit: PureGym

Fitness Equipment

There’s also been considerable activity outside of the brick-and-mortar M&A space. FitLab, the multi-brand performance lifestyle company behind Nike Studios, acquired both equipment manufacturer Assault Fitness and performance equipment and apparel brand RPM Training this year after securing $65 million in strategic financing from Atlas Credit Partners.

Fitness equipment leader Echelon is advancing its efforts in recovery following its acquisition this year of ThriveX, known for its advanced recovery solutions such as cold immersion therapy systems, smart hybrid saunas and compression boots.

credit: ThriveX

Fitnessmith also made a bold move to secure Gym Source USA’s commercial equipment, maintenance, and service divisions.

Apps

In the app space, Outside Inc. acquired MapMyFitness from Under Armour as it looks to scale its digital platform in the outdoor and active lifestyle realm, while TrainingPeaks bought virtual cycling platform IndieVelo.

Person outside with happy arms
credit: Min An from Pexels

Corporate Wellness/B2B

Corporate wellness is set to boom following deals by fit tech leader EGYM, which purchased FitReserve, a U.S.-based studio and gym network. HealthFitness, a Trustmark company, also just acquired Corporate Fitness Works (CFW), an on-site and virtual fitness management solutions provider that manages 70 corporate fitness centers.

Smart ring maker Oura recently acquired software company Sparta Science to advance its B2B offerings.

Five Oura Rings displayed next to each other
credit: Oura

Nutrition & Supplements

PepsiCo scooped up Siete while Gen Z-favorite Ghost, a sports nutrition brand, was acquired by food and beverage giant Keurig Dr Pepper.

Ghost energy drinks
credit: Ghost/Keurig Dr Pepper

The deal-making continues, as Pure Protein owner 1440 Foods acquired protein bar brand FitCrunch last month as “better-for-you” food and beverage options gain steam among health-conscious consumers. 

While it remains to be seen what 2025 has in store, the bigger question may be who will be the next to announce a deal.

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The 10 Most Popular Fitness & Wellness Stories of 2024 https://athletechnews.com/most-popular-fitness-wellness-news/ Mon, 23 Dec 2024 14:00:00 +0000 https://athletechnews.com/?p=118253 From mega-mergers to shocking CEO departures to new research findings, these fitness and wellness stories showed out in 2024 It was an exciting year for fitness and wellness news, from funding rounds to expansion plans to big-name bankruptcies and acquisitions. Our industry continues to evolve, and we’re here for it all at ATN – but…

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From mega-mergers to shocking CEO departures to new research findings, these fitness and wellness stories showed out in 2024

It was an exciting year for fitness and wellness news, from funding rounds to expansion plans to big-name bankruptcies and acquisitions. Our industry continues to evolve, and we’re here for it all at ATN – but some stories catch more eyeballs than others. 

These were the 10 most-read stories on Athletech News in 2024. Read on to catch up on any stories you may have missed or to get a refresher on the news that shaped the past year in fitness and wellness.

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Watch Now: DISRUPT Gym of the Future Content https://athletechnews.com/disrupt-gym-of-the-future-videos/ Fri, 20 Dec 2024 15:00:00 +0000 https://athletechnews.com/?p=117679 Catch up on any DISRUPT videos you missed (or want to re-watch), including insights into the future of gyms, health clubs and fitness studios For all the talk about the pandemic changing the way we people work out, brick-and-mortar fitness is back and better than ever. However, fitness facilities must navigate changing consumer preferences like…

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Catch up on any DISRUPT videos you missed (or want to re-watch), including insights into the future of gyms, health clubs and fitness studios

For all the talk about the pandemic changing the way we people work out, brick-and-mortar fitness is back and better than ever. However, fitness facilities must navigate changing consumer preferences like the rise of strength and functional training, cardio’s supposed decline, the desire for more community and rising costs spurred by inflation.

As part of DISRUPT, Athletech News’ can’t-miss video series, industry leaders took a look at these trends and more, with an eye toward how gyms and studios can build modern spaces that attract the fitness consumers of today while also remaining nimble to upcoming trends.

Topics of discussion included facility design and layout, equipment selection, value-adds like recovery services, and how to incorporate tech within the four walls.

In case you missed any DISRUPT Gym of the Future videos, ATN is sharing them here for your viewing pleasure. Sit back, relax and enjoy the content!

Omni Fitness From Home to Gym: Connecting Your Consumer

  • Adam Maloney, Regional Sales Director Canada / Eastern US, Echelon
  • Tim Petzel, Purchasing Manager, Johnson Fitness & Wellness
  • Jeff Shipman, Founder and CEO, Believe in Better Solutions
  • Moderated by Edward Hertzman, Athletech News

Personal Training in the Wellness Era

  • Raphael Konforti, Head of Fitness, 24 Hour Fitness
  • John Bauer, Content Developer and Co-Host of “Trainers Talking Truths” podcast, ISSA

Build a Better Gym: Blueprints for the Future of Fitness

  • Bryan Green, Founder and CEO, Aktiv Solutions
  • Dana Milkie, General Manager, EGYM
  • Greg Maurer, Vice President of Fitness and Education, Workout Anytime
  • Loryn Huff, National Program Director, Midtown Athletic Club
  • Moderated by Edward Hertzman, Athletech News

Less Is More: The Art of Fitness Facility Design

  • Bryan Green, Founder and CEO, Aktiv Solutions
  • Edward Hertzman, Athletech News

The Hybrid Fitness Revolution: When Going Digital Makes Sense

  • Andy Peat, CEO, Fitness On Demand
  • John Prior, Franchisee, Snap Fitness EMEA
  • Dr. Steve Boring, Fitness Director, Rochester Athletic Club
  • Sean Turner, CEO, Les Mills USA
  • Moderated by Edward Hertzman, Athletech News

The Future Is Personalized: A New Era for Omnichannel Fitness

  • Steven Webster, CEO, ASENSEI
  • Neill Broome, Co-Founder, In Motion Wellness Studio
  • Stephen Rossi, CEO, Alter
  • Moderated by Eric Malzone, “Future of Fitness” podcast

The Fitness Center Reimagined: How Hospitality & Commercial Real Estate Spaces Are Innovating

  • Danny Dulkin, VP of Development Services, Arch Amenities Group
  • Kayode Agbalajobi, Director of Asset Management, Carr Properties
  • Emlyn Brown, Global Senior Vice President of Wellbeing, Accor
  • Moderated by Edward Hertzman, Athletech News

Growth Mode: How to Successfully Scale Your Fitness & Wellness Concept

  • Jay Siano, Co-Founder, A. Jaybird
  • Anne Mahlum, Founder, Solidcore and Back on My Feet; Co-Founder, A. Jaybird
  • Moderated by Edward Hertzman, Athletech News

A Winning Feeling: The Art of Building a Top Fitness Brand with Tracy Anderson

  • Tracy Anderson, Founder, Tracy Anderson Method
  • Edward Hertzman, Athletech News

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Can Gaming Save Connected Fitness? Aviron Thinks So https://athletechnews.com/can-gaming-save-connected-fitness-aviron/ Thu, 19 Dec 2024 21:21:51 +0000 https://athletechnews.com/?p=118171 Aviron allows users to play video games while working out at home. The brand believes it’s cracked the code when it comes to fitness motivation Connected fitness is in flux – at-home brands like Peloton, Tonal and Hydrow have gained impressive followings but the jury is still out on whether they can continue to win…

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Aviron allows users to play video games while working out at home. The brand believes it’s cracked the code when it comes to fitness motivation

Connected fitness is in flux – at-home brands like Peloton, Tonal and Hydrow have gained impressive followings but the jury is still out on whether they can continue to win new members now that people have returned to gyms and studios following the pandemic. 

Aviron believes it’s found a way to break connected fitness out of its rut: video games.  

Founded in 2018 by Andy Hoang, Aviron makes at-home workout machines including rowers, a bike and a treadmill, all of which allow users to play arcade-style video games while working out

If the likes of Peloton, Tonal and Hydrow represent the classic model of connected fitness – instructor-led workout classes for cycling, strength training and rowing, respectively – Aviron offers something new. 

“When you say the words ‘connected fitness,’ people think of classes. That’s synonymous with connected fitness,” Hoang tells Athletech News. “We’re doing it differently. Our unique value proposition is that we’re using gamification.”

headshot of Aviron founder and CEO Andy Hoang
Aviron founder and CEO Andy Hoang (credit: Aviron)

The Case For Gamified At-Home Fitness

Hoang got the idea to create Aviron after buying a Peloton back in the day and realizing that while he enjoyed the brand’s classes, they weren’t enough to keep him motivated in the long run. He wanted something that could scratch his competitive itch.

Aviron does offer some instructor-led classes, along with guided scenic rides and the ability to stream content like Netflix while working out, but video games are the brand’s bread and butter. 

On its rowing machines, Aviron offers arcade-style video games including “Row Breaker,” where users smash bricks with every stroke, “Row to Riches,” where users battle pirate ships, or “Blaze Breakers,” where users save a burning building by spraying a water cannon. Similar games are available on Aviron’s Fit Bike and Treadmill.

Games on Aviron are adaptive, meaning what’s happening on-screen changes based on a user’s effort level on the machine. On the Fit Bike, users pedal faster or slower to achieve certain in-game targets, for example. 

Aviron games are available in multiplayer mode, so users can compete online against friends and other fitness enthusiasts for an added layer of competition. Users can also earn Aviron coins for completing workouts, unlock achievements and participate in monthly challenges. 

video gameplay on a fitness machine
Gameplay on an Aviron machine (credit: Aviron)

Aviron believes gaming makes fitness fun and challenging, motivating people to keep working out on its machines. The Toronto-based company might be on to something. Some studies have found that gamification strategies such as points or small financial rewards can encourage people to be more physically active

According to Aviron, 92% of its members are still working out on the brand’s machines after one year. The company has also seen 30% growth year-over-year and consistent monthly increases in membership. Aviron currently has around 50,000 active members globally, it reports.

“Our churn numbers and our engagement numbers are always higher than our competitors,” Hoang says. 

Somewhat surprisingly for a gaming fitness brand, Aviron’s customer base is split nearly 50/50 between males and females. And the brand’s core customer demographic is between 35 and 55 years old, so it’s not just Fortnite-obsessed Gen Z kids that enjoy gamified workouts. 

Given the broad appeal of gaming, Hoang believes Aviron has a bigger total addressable market (TAM) than traditional connected fitness brands that focus on streaming workout classes. 

“If you look at the number of people who are interested in instructor-led classes in North America and you can compare that to how many people play video games on their mobile devices, it overshadows it by 400% or 500%,” he notes.

Aviron rower
credit: Aviron

Don’t Write Off Connected Fitness Just Yet

As Aviron looks to compete with the big boys of connected fitness, it will do so in an uncertain market market for at-home workouts. Brands like Peloton and Tonal have highly dedicated user bases but have experienced some financial struggles and executive upheaval since the pandemic subsided. 

Despite some of the negative headlines surrounding connected fitness, Hoang believes the segment is still on an upward trajectory, even if COVID threw a monkey wrench into things by creating an artificially high demand for at-home workouts, causing some brands to grow too quickly for their own good. 

“It’s still a huge market, so there’s a huge opportunity,” he says. “Peloton had raised a billion dollars before COVID even hit, so this industry has (always) been on an upward trend.”

Assuming the market for at-home fitness continues to grow, Aviron could be well-positioned thanks to the first-mover effect. While other brands offer gamified cardio machines, most of them stick to one modality, whether that’s cycling or VR. Aviron, by contrast, covers rowing, biking and treadmill running, giving it access to a wider pool of fitness enthusiasts. The brand also recently introduced dumbbells, adding a strength training component to its lineup in line with industry trends. 

Aviron dumbbell
credit: Aviron

Looking ahead, Hoang says Aviron will look to expand its product lineup to include not just new fitness modalities, but multiple machines for each modality at different price points.  Aviron gave a sneak peek into what may be coming on that front in 2023 when the company launched the StrongGo, a less-expensive version of its flagship rower. 

“We’re going to continue expanding but it’s not just expanding breadth-wise, it’s expanding depth-wise,” Hoang says. “It’s not just expanding your product line horizontally, you need to expand it in a way that you can appeal to people who have huge budgets or people who don’t want to spend a lot.” 

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Consolidation Is Here To Stay in Fitness Franchising, Experts Say https://athletechnews.com/consolidation-fitness-franchising-disrupt/ Tue, 17 Dec 2024 22:16:44 +0000 https://athletechnews.com/?p=117982 This article is part of ATN’s DISRUPT 2024 video series, featuring can’t-miss conversations with the biggest executives in fitness and wellness. To watch DISRUPT content, click here Fitness franchising brings to mind images of independent owner-operators and small-business success. In the post-COVID world, though, the space might be better summed in a few words: “go big or go…

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This article is part of ATN’s DISRUPT 2024 video series, featuring can’t-miss conversations with the biggest executives in fitness and wellness. To watch DISRUPT content, click here

Fitness franchising brings to mind images of independent owner-operators and small-business success. In the post-COVID world, though, the space might be better summed in a few words: “go big or go home.”

During ATN’s DISRUPT video series, three leading investors in the fitness and wellness space – Jon Canarick of North Castle Partners, Marc Magliacano of L Catterton, and Robbie Shapiro of York Capital Management – gave their thoughts on the dynamics shaping the fitness franchising industry, including the rise of consolidation.

ATN breaks down key moments from their conversation, including why the trend of franchise consolidation might be here to stay, current market dynamics, and which fitness modalities are poised for growth in the years ahead. 

Large Franchise Groups Take Control

The fitness franchising space has been marked by consolidation since the COVID-19 pandemic, with large, cash-rich franchisee groups buying up smaller operators to create massive portfolios of gyms and studios. Crunch Fitness, Anytime Fitness and Planet Fitness have all seen private equity-backed franchise groups enter their systems in recent years, acquiring dozens of gyms in one pop

Investors expect to see this trend continue in the years ahead, especially since large franchise groups tend to see quick success in terms of expansion. 

“Consolidation is among us,” said L Catterton’s Magliacano, noting that generally, “large, sophisticated, franchisee groups perform very well.” 

“The data is just telling franchisors to help facilitate ongoing consolidation of their franchise groups,” he added.

The rise of so-called “HVLP 2.0” gyms could accelerate the consolidation trend in the years ahead. 

HVLP 2.0 gyms represent the next evolution of high-value, low-price gyms, offering premium amenity sets like group fitness classes, recovery services and top-shelf strength training equipment at monthly price points that are at or near traditional “HVLP 1.0” gym concepts like Planet Fitness

Crunch Fitness, Chuze Fitness, EōS Fitness and Vasa Fitness generally fall into the HVLP 2.0 category, although the definition is somewhat loose. Generally, HVLP 2.0  gyms are more expensive to build and maintain than HVLP 1.0 concepts, which can make it cost-prohibitive for individual franchisees to get in on the action. 

To control costs and logistics, many HVLP 2.0 brands opt to stay corporate-owned rather than sell franchises. North Castle Partners’ Canarick noted an interesting phenomenon  – virtually every major HVLP 2.0 brand is corporate-owned, with the exception of Crunch Fitness.

For Crunch, consolidating its gyms into the hands of a few large franchise groups offers a way to compete with the likes of Chuze, EōS and Vasa on the operational side while still tapping into the economic and expansionary benefits of a franchise model. 

“Where Crunch is evolving is to sort of lean into the fact that you do really need sophisticated management teams (and) more concentration of ownership. … So they sort of mimic, almost, the corporate-owned model,” Canarick said. 

sauna area inside a Chuze Fitness gym
Chuze, a leading HLVP 2.0 gym, offers amenities like infrared sauna (credit: Chuze Fitness)

A Tougher Market in General 

High-performing fitness brands are still able to obtain growth capital when the conditions are right, but overall, investors say the market is less receptive to franchising than it was before the pandemic. 

“The post-COVID world is very different for a whole host of reasons,” said York Capital Management’s Shapiro. “(The) pattern of daily life has changed, but also inflation and higher interest rates. So it’s a much more difficult operating environment today than it was five years ago.”

Besides macroeconomic factors, Magliacano noted that entrepreneurs are generally less interested in becoming fitness and wellness franchisees than they were before the pandemic, with COVID’s deleterious effects on the fitness industry still fresh in people’s minds.

“Today, trying to find franchisees that are ready, willing and able to lean in with their wallets is a very different proposition than it was pre-COVID,” he said. 

Canarick also pointed to the rise of at-home fitness during the pandemic as a factor that makes it more difficult for brick-and-mortar franchise brands to compete for investment dollars. While connected fitness brands like Peloton might be struggling financially, there’s no denying that at-home fitness is a bigger part of consumers’ exercise routines than it was pre-pandemic. 

“For all of the negatives around Peloton and all their struggles, they still have an enormous market share of daily workouts, much higher than it was before COVID,” Canarick said. 

Pilates, Strength Training Soar

It’s not all doom and gloom, though. The fitness and wellness industry is still generally growing, even if current macroeconomic conditions and lingering memories from the pandemic have created challenges for operators and investors. 

Asked which fitness modalities and concepts are poised for growth in the years ahead, investors pointed to some familiar trends. 

“I think, without question, the highest growth segment in boutique fitness is Pilates in its various forms, mostly machine-based Pilates,” Canarick said, adding that high-intensity interval training (HIIT) also “continues to be very successful.” 

Indoor cycling, on the other hand, is “a massive laggard” post-pandemic, he noted. 

women work out at a Natural Pilates studio
Reformer Pilates has become highly popular post-pandemic (credit: Natural Pilates)

Magliacano pointed to the rise of strength training in gyms, clubs and studios around the world. 

“When people say, ‘Follow the science,’ the science is saying strength is where you need to be,” he said. You want longevity, you want mobility in your older years? It is all about strength.”

On the flip side, “cardio-based concepts are going to struggle,” he said. 

Magliacano also expects to see tech and AI become a bigger part of the gym experience moving forward. This could be bad news for human personal trainers, he believes. 

“I think in the next 5, 10, years in the U.S., you’re going to see transformative changes within gyms, where technology and AI – and personalization of training programs – is going to take place,” he said. “Unfortunately, I believe that personal training from a human perspective will be under review, frankly, just to say it nicely.”

Shapiro pointed to the rise of wellness and recovery franchises, which offer services ranging from stretching and IV therapy to beauty services like Botox. 

“Anything that makes people feel better, feel younger, recover faster,” he said. ”There are huge demographic tailwinds with the aging population in the United States, so we’re very bullish on recovery services.”

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Planet Fitness Poised for Strong 2025, Analysts Say https://athletechnews.com/planet-fitness-poised-for-strong-year-strength-training-marketing/ Mon, 16 Dec 2024 22:20:52 +0000 https://athletechnews.com/?p=117892 New marketing tactics and a bigger focus on strength training equipment have analysts bullish on Planet Fitness’ future despite some headwinds Planet Fitness’ strategy under new CEO Colleen Keating is starting to take shape, and at least some analysts are confident the low-price gym giant will be able to reassert its dominance in 2025, buoyed…

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New marketing tactics and a bigger focus on strength training equipment have analysts bullish on Planet Fitness’ future despite some headwinds

Planet Fitness’ strategy under new CEO Colleen Keating is starting to take shape, and at least some analysts are confident the low-price gym giant will be able to reassert its dominance in 2025, buoyed by a revamped marketing plan and a shift to more strength training equipment. 

In an equity research report published Friday, analysts from TD Cowen expressed optimism in Planet Fitness’ future under Keating, who took over in June at a pivotal time for the high-value, low-price (HVLP) gym brand.

The analysts said they met with Planet Fitness’ executive team including Keating, chief financial officer Jay Stasz, retiring CFO Tom Fitzgerald, and vice president of investor relations Stacey Caravella, and that the meeting “re-affirmed our confidence” in the gym brand’s stock as a “buy” for 2025. 

“We expect changes around marketing, messaging, box lay outs, and franchise economics to reaccelerate openings, members, and comps growth,” the analysts wrote. “Progress will take time, but we expect a better 1Q, and are encouraged by the price transition.”

Just before Keating took over, Planet Fitness in May raised the price of its Classic Card membership from $10 per month to $15, its first price hike in nearly 30 years. 

Planet Fitness is still the largest gym chain in the United States with over 2,000 locations and around 20 million members, including a sizable Gen Z contingent. However, the brand is facing increased competition from low-price gyms including Crunch Fitness, EōS Fitness, Chuze Fitness and Vasa Fitness, which have won over a certain portion of the fitness population by offering amenities like group fitness classes, recovery services and premium strength training equipment at price points at or near Planet’s $15/month offering. 

Marketing to Gym-Goers

To fend off competition from those brands, Keating has made revamping Planet Fitness’ marketing strategy a top priority. This includes focusing on fitness over fluff, and positioning Planet as a brand for serious gym buffs

“We’re beginning the shift to communicating the high value of a Planet Fitness membership versus primarily focusing on our low price and using our marketing to demonstrate the breadth of high-quality top-tier equipment in our club,” Keating explained during a Q3 earnings call last month.

an image of the exterior of a Planet Fitness
credit: QualityHD/shutterstock.com

TD Cowen analysts noted that Planet Fitness execs are aligned on delivering a marketing message that’s focused on “getting people off the couch” and into the gym. In line with Keating’s comments, the brand will also focus on “dispelling the perception members can’t advance their fitness journey at its gyms,” the analysts wrote. 

New marketing tactics include touting the quality of Planet Fitness’ workout equipment, especially its strength training offerings. In a recent social media campaign, the brand compared its dumbbells to those of an “overpriced competitor gym,” noting that both pieces of equipment weigh the same and will get you the same results, but a Planet Fitness membership is cheaper. 

Similar marketing initiatives will be implemented this month and over the first quarter of 2025 across social media and on TV, the analysts said. They caution, however, that Planet Fitness is still searching for a new chief marketing officer, who will want to “put their stamp on the business,” so the brand’s marketing strategy could evolve.

Strength Training Shift

To match its new marketing ethos, Planet Fitness is also changing the look and feel inside of its gyms, notably by embracing strength training and cutting down on cardio. TD Cowen analysts noted that the brand is tweaking the layouts of its gym floors to include “a better mix of on-trend equipment.”

According to the report, Planet Fitness gyms around the country are gradually adding more strength training equipment, including free weights, and removing some cardio machines, eyeing a 50/50 split between the two modalities. That move follows industry trends as gym-goers, especially young people and women, flock to strength training.

“This should improve the member experience by increasing equipment relevance and reducing wait times,” the analysts wrote. 

women run on treadmills at a Planet Fitness gym
Rows of cardio machines may soon be a thing of the past at Planet Fitness gyms (credit: Planet Fitness)

In the long term, Planet Fitness execs are also looking to improve franchise economics to drive more gym openings in the years ahead. That includes lowering build-out costs for new gyms by around 10%, making it cheaper for franchisees to buy and maintain equipment, and increasing revenue through the Classic Card price increase, per the TD Cowen report.

Overall, the report is positive on Planet Fitness’ outlook ahead of a pivotal January –  the brand’s first with its new $15/month pricing structure. TD Cowen predicts that Planet will add around 1.1 million net members in the first quarter of 2025.

“We expect a strong 1Q, but net member growth could look different from prior years as it will be the first 1Q with a higher price point,” the analysts wrote. 

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Track Running, HIIT & Pilates Rise in Popularity, Garmin Data Shows https://athletechnews.com/track-running-hiit-pilates-garmin-data-report/ Thu, 12 Dec 2024 11:00:00 +0000 https://athletechnews.com/?p=117438 The 2024 Garmin Connect Data report shows which fitness modalities users gravitated toward over the past year High-intensity interval training (HIIT) may be poised for another breakthrough, while Pilates and strength training remain top-of-mind for fitness enthusiasts, according to a new report from smartwatch giant Garmin.  Garmin has released its 2024 Garmin Connect Data Report,…

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The 2024 Garmin Connect Data report shows which fitness modalities users gravitated toward over the past year

High-intensity interval training (HIIT) may be poised for another breakthrough, while Pilates and strength training remain top-of-mind for fitness enthusiasts, according to a new report from smartwatch giant Garmin. 

Garmin has released its 2024 Garmin Connect Data Report, which reveals how Garmin users participated in health and fitness over the past year. The report offers some interesting insights – and perhaps a few surprises – for fitness operators and wellness enthusiasts.

Track running (+65%), HIIT (+56%) and Pilates (+42%) saw the highest year-over-year activity percentage increases, followed by e-bike riding (+38%) and indoor rock climbing (+31%).

Strength training also saw a healthy 25% year-over-year increase, which is unsurprising given the modality’s surge in popularity post-pandemic. 

Stairclimbing also saw a notable 25% increase, likely driven by the rise of glute training, especially among women. Breathwork logged a 19% year-over-year increase as fitness enthusiasts increasingly prioritize holistic wellness

Outdoor running (7%) and walking (6%) also saw modest year-over-year increases, showcasing the staying power of foundational fitness modalities. 

woman runs on a tree-lined path
credit: Garmin

Pilates’ surge is notable, especially since Garmin users aren’t traditionally associated with the mind-body modality. One of the fastest-growing fitness modalities over the past few years, Pilates shows no signs of slowing down as franchise brands continue to expand and equipment makers release tech-forward spins on the modern Reformer experience

HIIT’s strong performance should bode well for large fitness operators like Barry’s and smaller boutiques alike, A recent report from Research and Markets projected high-intensity interval training to become the fastest-growing boutique fitness modality over the next five years, driven by its effectiveness for time-constrained exercisers. Studies like this one, meanwhile, have found that HIIT may reduce the risk of cognitive decline in seniors.

“This is the first study to our knowledge to identify that a HIIT paradigm for the healthy elderly is suitable and effective at significantly improving and retaining long-term hippocampal-dependent learning, for up to 5 years,” the study’s authors wrote.

Stepping to Better Health

Garmin’s 2024 report also offered insights into the general health and wellness patterns of people across the globe. 

The average Garmin user logged 8,317 steps per day in 2024, well above the worldwide average, which hovers around 5,000. Hong Kong users took the most steps on average, with 10,340, while Indonesians came in last, taking just 5,375 daily steps. 

Going Dutch? Netherlands Wins on Key Health Metrics

The Dutch have a reputation for leading a healthy lifestyle, which appears to be well-earned. Garmin users in the Netherlands had the highest average Body Battery level, a metric Garmin uses to measure personal energy levels based on factors like physical activity, stress, heart rate and sleep. 

The average Garmin user’s Body Battery level in the morning was 71, while those in the Netherlands had an average level of 74. Japan had the lowest average body batter level, coming in at just 66 in the morning. 

The Dutch also got the best sleep in 2024, with an average sleep score of 73, outpacing the worldwide average of 71. Indonesians had the lowest average sleep score of 64 (maybe they should walk more!).

woman looks out sleep data on her Garmin smartwatch
credit: Garmin

South Korean Garmin users did the best at managing their stress, logging an average daily stress score of 28, ahead of the global average of 30. Malaysians had the highest stress scores of all Garmin users, coming in at 33. 

Surprisingly, across the board, Garmin users’ stress scores were lowest on Monday (29) and highest on Saturday (32). Garmin notes that might be due to “jitters” before a big race or event, which often takes place on the weekend.

Fountain of Youth

In terms of fitness, the average Garmin user’s “training readiness” score was 60, which equates to moderately prepared. Users in New Zealand were the most ready for training on average, while South Koreans tended to be the least prepared. 

Garmin users tend to be healthier than their biological age would suggest. According to the brand’s “fitness age” metric, Garmin users are, on average, 2.48 years younger than their actual age. Women were 1.94 years younger on average while men were 2.75 years younger than their actual ages. 

woman looks at her Garmin smartwatch
credit: Garmin

Garmin Eyes Healthcare

While Garmin has made a name for itself over the past two decades for its health and fitness wearables, the Kansas-based brand is also eyeing the healthcare space

Garmin executives believe smartwatches can become an integral part of modern healthcare by tracking metrics like stress, heart rate variability (HRV) and skin temperature, and feeding that data to healthcare professionals, who can then make more informed decisions on patient health.

Called, “smartwatch-enabled digital health,” Garmin is actively working to make this vision a reality. The company launched Garmin Health in 2014, growing it into a full-scale B2B solution for healthcare, research and clinical trials, insurance companies, gyms and fitness brands, corporate wellness and more. 

When it comes to smartwatches and healthcare, Garmin believes it has an advantage over other tech players like Apple and Samsung thanks to its open platform, the quality of its biometric data and the long battery life of its watches. 

“Garmin’s business strategy is to be an ecosystem player,” Scott Burgett, senior director of Garmin Health Engineering, told Athletech News earlier this year. “When you look at the breadth of our wearable products, the breadth of our data, and the ease of integration – we’re agnostic between iOS and Android – we really are the best company (to work with).”

To view the 2024 Garmin Connect Data Report in full, see here.

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CEO Corner: Padel Haus’ Santiago Gomez on the Next Big Racket Sport https://athletechnews.com/ceo-corner-padel-haus-santiago-gomez-exclusive-interview/ Wed, 11 Dec 2024 16:05:06 +0000 https://athletechnews.com/?p=117366 Gomez believes padel, a racket sport that takes inspiration from tennis and squash, can become the next big thing in America Pickleball might be all the rage right now in the United States, but another racket sport could be coming for the crown.  Padel, a sport invented in Mexico in 1969, has emerged as a…

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Gomez believes padel, a racket sport that takes inspiration from tennis and squash, can become the next big thing in America

Pickleball might be all the rage right now in the United States, but another racket sport could be coming for the crown. 

Padel, a sport invented in Mexico in 1969, has emerged as a potential competitor to pickleball’s hegemony inside gyms and health clubs across America. Essentially a cross between tennis and squash, padel is popular in countries including Spain (where it’s the second most popular sport after soccer), Italy, Argentina, Sweden and its homeland of Mexico, among others.

Santiago Gomez is betting that padel will make it big in America, too. 

A Mexico-born padel fan turned New York entrepreneur, Gomez founded Padel Haus in 2022 in Brooklyn as New York City’s first dedicated padel club. Since then, Padel Haus opened two additional clubs in Brooklyn, with new locations set for Denver, Nashville and Atlanta.

Gomez sat down with Athletech News to discuss the origins and growth padel, why the racket sport is poised for growth in the U.S. and his plans for the future of Padel Haus.

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 Padel Haus?

Santiago Gomez: I was born in Mexico and grew up between Mexico City and Acapulco, where padel was invented in 1969. I grew up with the sport in my blood – my family has been playing it for years. I started playing as a teenager and played until after I graduated college in Mexico. 

I moved to New York in 2010 to work in finance – at that time there were no courts here, so I stopped paying. In 2014, I left my finance job and opened a few restaurants, which I sold in 2020 when COVID came. During COVID, I moved back to Mexico for a bit and started playing padel again every day. I’d heard they opened a first club in Miami, Wynwood Padel Club, and that it was doing quite well. That’s when I got the idea of opening a club in New York City. I came back to New York and opened our first club (in Dumbo, Brooklyn) in the summer of 2022. 

Padel Haus reception area in Dumbo, Brooklyn
Padel Haus reception area in Dumbo, Brooklyn (credit: Padel Haus)

ATN: How would you describe padel for people who aren’t familiar with the sport?

SG: Padel is like a mix between tennis and squash. You play on a smaller court than tennis and can use the walls, which is why it’s somewhat similar to squash. It’s doubles only, so four people on a court. 

Even though it was invented in Mexico, there are now 25 million people playing padel worldwide. In places like Spain and Sweden, padel has surpassed tennis as the largest racket sport. “Padel” searches on Google are up almost 100% year-on-year for the past three or four years. 

Brands are also starting to realize the value of the sport and the amount of players who are passionate about it. Brands like Adidas and Wilson, which used to be just tennis brands, now have their own padel lines. Some fashion brands like Prada and Zara have also launched their own padel lines. 

padel courts in Dumbo, Brooklyn
Padel Haus courts in Dumbo, Brooklyn (credit: Padel Haus)

ATN: Padel hasn’t historically been popular in the United States, but that’s starting to change. How would you assess padel’s growth trajectory in America? 

SG: The U.S. was probably the last (large, Western) country where the sport wasn’t present, up until three or four years ago. Since then, it’s grown around 100% year-on-year in terms of players and clubs. The Pro Padel League (PPL) was just created, which I compare a lot with MLS. When soccer started in the U.S., it was kind of late to the game but everybody played it worldwide. Then MLS started growing by bringing in a lot of former top players or retired players. The PPL is somewhat doing the same.

Given its size and the amount of potential players, I think the U.S. is going to become the number one padel market in the years to come. Right now, there are about 400 courts but I think we can easily get to 5,000.

ATN: Is the rise of pickleball in America a good or bad thing for the future of padel? 

SG: Pickleball, padel, tennis, ping pong, squash – any racket sport – I think they all help each other out. The world has seen a rise in racket sports as a whole, and pickleball did a great thing by converting some tennis players to try pickleball for the first time. I see the same with pickleball players trying padel for the first time. The conversion in most cases is one way, meaning people try padel and they just want to play paddle; they don’t want to go back to tennis or pickleball. We have a 92% retention rate in terms of people who come to try this sport for a second time returning for a third time. 

Padel players tend to have a different profile than pickleball players. Padel players tend to be a bit younger and more athletic, whereas pickleball is mainly for people who wouldn’t play sports otherwise. Padel has more strategy involved because of the walls, and it’s a bit more (physically) challenging because you’re running more on a bigger court. 

Close-up of a padel court in Dumbo, Brooklyn
credit: Padel Haus

ATN: Why did you decide to launch Padel Haus in New York City to start, and how has the brand grown since 2022? 

SG: New York is a fantastic market given how many expats and foreigners live here. In all of the facilities we’ve opened here, the club was full within one or two months. Initially, most of our players were international, but those people told their friends who came over and tried it for the first time. Now, the majority of our players are Americans. 

As we go to new markets like Nashville, Denver and Atlanta, one thing they all have in common is that they’re wellness-first markets. A lot of people who live in Denver are outdoorsy and they want to try sports. Nashville has also gone through a transition in terms of what people like to do for social activities. 

Rendering of Padel Haus' upcoming Nashville location
Rendering of Padel Haus’ upcoming Nashville location (credit: Padel Haus)

ATN: What’s the typical demographic profile(s) of a Padel Haus member?

SG: When we first opened in New York, 90% of our customers were male. Now we’re at around  65% men and 35% women. That probably has to do a lot with where we are in New York City. We don’t get a lot of stay-at-home moms but we’ll get that in other cities like Nashville and Denver. 

ATN: What are your expansion goals for Padel Haus over the next few years?

SG: We want to get to 40 facilities within the next five years. We’re looking at every tier-one and tier-two city right now. 

We want to be close to downtown in most of the cities that we go to, and we’re targeting cities that have at least 800,000 people and that have purchasing power to pay the rates that we ask for. I always say we have a premium facility and we have premium prices. Because of that, we stay closer to the city centers.

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YogaSix, StretchLab Tap Into the Business of Longevity https://athletechnews.com/yogasix-stretchlab-business-of-longevity/ Mon, 09 Dec 2024 21:11:39 +0000 https://athletechnews.com/?p=117213 The Xponential Fitness brands are leaning into the anti-aging trend, offering new classes and services, while tailoring their marketing approaches to appeal to new consumers The business of longevity is booming as consumers embrace the idea that they can live better for longer through medical, pharmaceutical and lifestyle interventions.  The market for longevity and anti-aging…

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The Xponential Fitness brands are leaning into the anti-aging trend, offering new classes and services, while tailoring their marketing approaches to appeal to new consumers

The business of longevity is booming as consumers embrace the idea that they can live better for longer through medical, pharmaceutical and lifestyle interventions. 

The market for longevity and anti-aging therapies alone is projected to grow to $44.2 billion by the end of the decade, up from $25.1 billion in 2020. That number likely represents just a small slice of the economic power of the longevity movement in the broader wellness economy, which itself is projected to reach $9 trillion by 2028

For fitness brands, the longevity movement offers an opportunity to appeal to consumers who might not ordinarily be interested in working out. 

Xponential Fitness brands YogaSix and StretchLab are tapping into the longevity movement, offering new class types and services, along with tailoring their marketing approaches to get members excited about the idea of doing fitness for the long haul over quick fixes. 

“With both brands, we’re not having to reach too far to be able to fit into this trend,” YogaSix president Lindsay Junk tells Athletech News. “We’ve always used (terms) like recovery, mobility. The word longevity we haven’t used in the past with yoga, but it’s something we’re starting to add into some of our keyword searches.”

YogaSix Adds Mobility Class, Targets New Consumers

Amid the longevity movement, YogaSix is launching a new class type, Y6 Mobility, which focuses on active mobility and will incorporate tools like TriggerPoint balls, a type of massage ball. The yoga brand has also introduced Y6 TRX, a class that leverages TRX suspension trainers to help members increase their range of motion and get into deeper yoga poses with the help of straps. 

In marketing materials, YogaSix highlights the “more gentle aspects of yoga,” including breathing, Junk notes. This helps the brand appeal to a wider swath of the fitness population than would generally be interested in yoga. 

“It allows us to bring in a whole new group of people that maybe historically hadn’t thought about doing yoga,” Junk says. 

older man poses at a YogaSix class
credit: YogaSix/Xponential Fitness

The average age of a YogaSix member is around 44, but Junk reports the brand is seeing success attracting members in their 50s, 60s and 70s. The yoga brand is also seeing interest among younger populations, including athletes and weekend warriors.

“We’re not just getting people that are older; we’re getting athletes and people that are coming in after a hard cardio workout,” Junk says. “Longevity doesn’t necessarily have to be about age, it could just be about being able to do things for a long time. Say you’re a marathon runner and you want to be able to run lots of marathons for several years, you need to be able to (recover). That type of work is where yoga can come in.”

headshot of YogaSix president Lindsay Junk
Lindsay Junk (credit: YogaSix/Xponential Fitness)

StretchLab Adds Normatec, Markets Longevity

StretchLab, which offers a range of assisted stretching classes led by accredited instructors, has partnered with Hyperice to bring Normatec compression therapy leg sleeves into its studios. Over 100 StretchLab locations now offer Normatec services, which members can purchase as an add-on to their existing membership plan after a complimentary session. 

StretchLab president Verdine Baker tells ATN the brand added Normatec sessions to help members get more out of their health and wellness journeys, in line with the longevity movement. 

“Our goal through the first couple of quarters of next year is to have all 500-plus locations using Normatec as a service,” Baker says. “As it stands right now, we’re the largest provider of the Normatec compression therapy out of any singular brand, so we have a great partnership.” 

assited stretching session at a StretchLab studio
credit: StretchLab/Xponential Fitness

While assisted stretching naturally lends itself to the longevity movement, StretchLab is taking deliberate steps to put itself front and center of the anti-aging trend. 

For example, in its marketing, the brand tells stories about its members who’ve experienced health benefits over the long run versus just feeling better after a 50-minute stretching session (which happens, too).

“When you’re telling a story, you have to be able to show it with real examples,” Baker says. “ We leverage testimonials of our members who’ve gone through a journey to show what it looks like to go through six months a year, two years… We have members who’ve been with us since the very beginning, so we try to bring those stories to life in how we market locally.”

headshot of StretchLab president Verdine Baker
Verdine Baker (credit: StretchLab/Xponential Fitness)

Why Longevity Is Here to Stay

Fitness is an industry of trends, but both Baker and Junk believe the longevity movement has staying power, even if it may not always be top-of-mind like it is today. 

“I don’t think it’s a trend, but it is trending,” Baker says of longevity’s newfound popularity. “In my opinion, we have a more educated consumer than we’ve ever had in the history of the fitness industry, and it shows by how our consumers are valuing these different wellness modalities.”

Junk believes that over the coming years, longevity will settle in as an accepted pillar of fitness, similar to cardio and strength training today.

“I think something else will become really popular in the next couple of years. But I don’t think people will say, ‘Oh, forget about longevity, that’s not important,’” she says. “It’ll always be a part of the complete fitness journey.”

man and woman look at a screen at a StretchLab
StretchLab offers services including a mobility assessment (credit: StretchLab/Xponential Fitness)

Eyeing Expansion

Buoyed by the longevity movement and a strong pipeline of franchise sales under parent brand Xponential, both StretchLab and YogaSix are eying continued studio expansion.

StretchLab just topped the 500 studio mark in North America and is eyeing 600 locations as its next big goal. International expansion, in particular, will be a big focus for the stretching brand in 2025 as StretchLab looks to build on its presence in countries including Australia, Mexico, Japan and soon, Kuwait. 

“We’re excited about our international expansion opportunities,” Baker says. “We have a great team in-house that’s doing a great job of trying to find the right partners for us to have the right growth plan.”

YogaSix has over 200 open studios, making it one of the world’s biggest yoga brands. In 2025, YogaSix will continue to pursue domestic expansion, although Junk notes it will be “very strategic with where we develop” in the United States. 

International expansion is also on tap for the yoga brand in the year ahead. 

“We’re going to have our first studio open in Japan, we just opened in Germany and we have plans for Mexico,” Junk notes. “Xponential has built out its international team, and some of our focus for the year is going to be on international (expansion). But we still have some domestic work to do.”

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Fitness in Flux: How 2024 Redefined & Set the Stage for 2025 https://athletechnews.com/fitness-in-flux-how-2024-redefined-set-the-stage-for-2025/ Fri, 06 Dec 2024 22:44:39 +0000 https://athletechnews.com/?p=117097 As consumer demands shift, 2024 is laying the groundwork for a more innovative and personalized fitness landscape in 2025 The fitness industry has navigated a tumultuous few years marked by uncertainty and constant pivots. Over the past 12 months, it’s seemingly entered what could be called a “new normal.” Members returned in increasing numbers —…

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As consumer demands shift, 2024 is laying the groundwork for a more innovative and personalized fitness landscape in 2025

The fitness industry has navigated a tumultuous few years marked by uncertainty and constant pivots. Over the past 12 months, it’s seemingly entered what could be called a “new normal.” Members returned in increasing numbers — sometimes in droves —  but with fundamentally shifted expectations.

Armed with a fresh perspective on health and wellness, today’s consumers demand more than what the industry has traditionally offered. The fitness landscape has been reshaped by these evolving needs, challenging operators to adapt in ways never seen before.

At the same time, the rapid evolution of technology and the rise of AI are revolutionizing the way businesses operate. And while these advancements present opportunities, they also bring new complexities and uncertainties for an industry already in flux.

To gain insight into this evolving environment, Athletech News spoke with three seasoned industry professionals – Matt Wright, VP of growth and development at Healthtrax Fitness & Wellness, Mark Fisher, owner of NYC’s Mark Fisher Fitness and Business for Unicorns and Cody Patrick, CEO of Sweat440. Together, they share their perspectives from the frontlines, shedding light on where the industry stands today and how 2025 may unfold.

The State of the Industry in 2024

When asked how they would describe the state of the industry, and if they consider 2024 a “comeback year” post-pandemic, these pros had some similar thoughts. 

“There has been an upward trajectory, and it was a solid year, but I’m not sure I would describe it as a comeback year from COVID,” said Fisher.

Wright takes it one step further, saying, “We can’t compare it to pre-COVID times. People are coming back with a much more holistic focus —  looking for mental health support, recovery and community, not just fitness. At the same time, we’re seeing a new generation of health-conscious individuals, as well as fewer ‘donators,’ the people who join and never show up.”

Patrick also observed continued growth throughout the year but pointed out seasonal dips. “2023 was more of the comeback year. 2024, for us, was a continuation of that growth,” he said. “While we saw ebbs and flows due to summer vacations and election-related spending slowdowns, overall, the trajectory has been positive.”

credit: RicardoImagen

Key Trends in Fitness

Recovery continues to be the focus across the industry. Wright explained how this has shaped his approach.

“We’ve piloted cold plunges, added cryo beds, and invested in saunas and steam rooms,” he said. “These features are increasingly in demand, and we’re working to meet members’ needs strategically.”

Fisher echoed this trend while pointing to the emergence of recovery-focused studio brands. “I’m particularly interested in concepts like Othership, a chic ‘class-style’ spa, and Sweathouz (SWTHZ), an infrared sauna and cold plunge franchise,” he said. “However, further, questions remain as to whether this will be a trend with softening demand, or if this will become a permanent tentpole of consumer wellness behavior.”

For Patrick, he has been testing the waters at Sweat440. “We’re incorporating recovery lounges with compression and percussion therapies in some of our studios,” he shared. “This is a focus for the brand to test and implement throughout 2025.”

Strength training is also on the rise, according to Patrick. “We’ve always had a strong strength component, but we’ve increased it even more to meet demand,” he says. “Gamification has also become a key motivator for members, and we are seeing that as a significant motivator.”

Wright agreed, noting the impact of personal training. “Personal training departments are thriving, especially with the Boomer population wanting to stay healthy and active. People want to exercise more efficiently, so they’re hiring fitness professionals. It’s a shift toward a more personalized and guided fitness experience.”

hand touching AI sign

The Role of Artificial Intelligence

Artificial intelligence (AI) continues to be a hot topic across industries, including fitness.

Patrick shared how AI is transforming their member’s journey. “While the core workouts aren’t really impacted by this, the customer journey and interaction most certainly are,” he explains. “We are looking to AI to optimize everything from customer communication to data analysis and predictive modeling.”

Meanwhile, Wright uses AI for optimization. “I see it as an assistant,” he explained. “It helps us optimize marketing, analyze brand performance, and allocate resources more effectively. But it will never replace the human touch or the need for personalization in fitness.”

Fisher offered a more tempered perspective. “I think much of the AI application in the gym space has been somewhat overhyped,” he said. “Yes, tools like ChatGPT can save time on content creation, but they still require a human touch to avoid sounding generic. Having said that, it’s fast-moving waters. With the sophistication increasing at breakneck speed, I anticipate we’ll continue to see booking and billing platforms integrate AI to provide insights to owners. And ideally, owners can use this deeper and more personalized understanding of behavior to drive more utilization and improve retention.”

Wellness, Longevity & Integration with Healthcare

As the focus on wellness and longevity grows, fitness operators are finding ways to adapt. Wright highlighted Healthtrax’s partnerships with healthcare providers.

“We’ve partnered with hospitals to create a seamless transition from physical therapy to the gym,” he said. “We are also plugged into medical weight loss initiatives and work with individuals to teach the importance of strength training and maintaining healthy eating habits. This affiliation with hospitals has been a big differentiator for us.”

Fisher pointed to the potential for gyms to play a larger role in personalized wellness. “As we head into 2025, the most competitive gyms and studios will win by supporting their members in the other 23 hours of the day,” he said.Simply providing access to workouts is going to be more commoditized, as taking care of your health and fitness requires more than just workouts.  Whether that’s through add-on or integrated coaching services, the best performing gyms and studios will provide holistic coaching and serve as case workers who can connect clients and members with other resources.”

credit: Prathan Chorruangsak

Challenges & Opportunities in 2025

As 2025 approaches, Patrick underscored the challenges of a saturated market.

“The challenge is cutting through the noise to show what makes you unique,” he said. “Clear differentiators and meaningful engagement will be key.”

Fisher remained optimistic about the future while acknowledging the competitive landscape.

“Consumer spending on fitness is growing, but it’s also getting more sophisticated,” he said. “From franchises to mom-and-pop independents, as the players improve, competition increases. For instance, in our corner of the market, small group personal training gyms have seen a modest but significant tick up in monthly churn over the last 2 years. To be clear, the class/session experience will still matter. But building relationships and coaching clients to results will command a premium and be the linchpin of retention.”

Wright offered another perspective, emphasizing the importance of innovation and team investment. “The opportunity for fitness operators is to invest in their teams — time off, benefits, 401(k)s, spousal support, resources for challenges and pay,” he said. “The reason we have turnover is we miss the opportunity to take care of team members.”

In the end, these pros agree that it ultimately boils down to servicing people, and their health needs, with Fisher saying, “The best-performing gyms and studios will focus on building relationships, providing holistic coaching, and integrating health and wellness into their offerings.”

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How Crunch’s CR Fitness Created a Winning Personal Training Biz https://athletechnews.com/cr-fitness-crunch-franchisee-personal-training/ Fri, 06 Dec 2024 18:02:25 +0000 https://athletechnews.com/?p=117061 Led by Darrick Druce, CR Fitness’ personal training arm is outpacing gym industry standards CR Fitness Holdings has emerged as the largest and fastest-growing franchise group in the thriving Crunch Fitness system, recently topping 70 gyms as it eyes 100 clubs by 2026.  Crunch’s top franchisee is also a leader when it comes to personal…

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Led by Darrick Druce, CR Fitness’ personal training arm is outpacing gym industry standards

CR Fitness Holdings has emerged as the largest and fastest-growing franchise group in the thriving Crunch Fitness system, recently topping 70 gyms as it eyes 100 clubs by 2026. 

Crunch’s top franchisee is also a leader when it comes to personal training, outpacing gym industry standards when it comes to personal training revenue at its clubs. 

The leader of CR Fitness’ personal training business, vice president of personal training Darrick Druce, joined the company back in 2016 after spending time as a staffer for the Chicago Bulls, YMCA and LA Fitness. Over the last eight years, Druce has built CR Fitness’ personal training arm into one of the industry’s best.

Druce sat down with Athletech News to share how CR Fitness drives personal training revenue by taking a member-first approach, recruiting top talent and adapting to industry trends. 

Put ‘People Over Profit’

When Druce got to CR Fitness, his first focus wasn’t on driving personal training revenue (that would come later). Instead, he sought to create a culture that could thrive from gym to gym. 

“Industry experience taught me that people run our business,” he tells ATN. “So when we got here, the goal was, let’s prioritize people over profit.”

headshot of CR Fitness VP of personal training Darrick Druce
Darrick Druce (credit: Crunch/CR Fitness)

Druce says gyms must resist the temptation to turn personal training into a sales-first process, calling this an “old-school” way of thinking. Instead of aggressively pushing a personal training package at point-of-sale as soon as a member signs on the dotted line for a membership, gym staff should seek to build a relationship with the member, understanding their fitness goals and aspirations. 

“The reality is all members have goals,” Druce says. “(But) very few members have a plan that aligns with the goal.” 

If gym staff can build a rapport with the member, shelling out extra money on a personal training package becomes much more palatable – and more effective over the long run.  

“We’re trying to get them interested in the idea of taking a coach with them on their journey, and having guidance and mentorship along the way,” Druce adds.

woman meets for a personal training consultation at Crunch Fitness
credit: Crunch/CR Fitness

For CR Fitness, the strategy seems to be paying off. Druce reports that around 60% of the franchisee’s new members decide to purchase an introductory personal training session, called “CruchONE Kickoff.”  Of those who attend the kickoff session, around 42% opt to buy a longer-term personal training package. 

Be ‘Relentless’ in the Pursuit of Top Talent  

Personal training might be on the rise post-pandemic, but many big-box gyms are finding it more difficult to hire and retain quality staff due to competition from social media and lingering effects from COVID-era gym shutdowns. 

“We have to be relentless in our pursuit of the right talent,” Druce says.

CR Fitness is certainly relentless in its pursuit of quality personal trainers, scouring LinkedIn and sometimes doing tens of interviews just to hire the right candidate. Druce highlights the importance of hiring staff who embody CR Fitness’ member-first culture.

“We want talented people, but we want people who prioritize the member over themself,” he says. “It’s a selfless sacrifice. If we’re hiring managers who only care about how much they sell and their own personal paycheck, we probably hired the wrong person.”

woman works out on a strength training machine
credit: Crunch/CR Fitness

While CR Fitness is relentless in its recruitment of outside talent, it also hires from within. Druce notes that around 70% of personal trainers at CR Fitness-owned Crunch gyms started out as members.

This is an important recruiting tool for big-box gyms to leverage, he believes. 

“All of our members chose us over our competitors, which means they chose to spend their money here. They believe in who we are at CR fitness,” Druce says. “So if I’m meeting someone in the club who chose us, who looks the part, who seems confident on the floor, I strike up a conversation with them.”

After the right talent is identified, the CR Fitness team is confident its onboarding program is second to none in the industry. As part of the onboarding program, new trainer hires get coached by district managers at CR Fitness’ corporate office, learning the ins and outs of the business of personal training before they ever start training clients.

CR Fitness’ recruitment strategy seems to be paying off, with trainer retention metrics far above industry averages. 

“We only have a 4% (monthly) turnover rate right now, which is unheard of in the industry,” Druce notes. “I’ve been part of organizations before where they have over 100% turnover across 12-month timeframes.”

Adapt or Die: Embrace New Trends

CR Fitness’ personal training success speaks for itself, but the company isn’t resting on its laurels. Druce and his team are constantly evolving the program to account for new trends in fitness and technology. 

For example, the company has made its personal training program fully digital, allowing members to track their workouts and communicate with trainers from their phones when they’re outside of the club. 

“The reality is there are two main reasons that a client quits: lack of communication between them and their trainer, and lack of usage of their sessions,” Druce says. “If we can ensure that their session usage stays on track with what they purchase and that their trainer communicates well, we know that client’s going to stay long term, so we’ve doubled down on those two things.” 

Evolving includes embracing new ways of working out, including the global rise of strength training. CR Fitness has added more strength equipment to its Crunch gyms while scaling down on its cardio machine offerings. Personal trainers actively encourage members to include strength training in their routines.

“Whether it’s Phil Heath the bodybuilder walking through the door or Mrs. Jones, who’s working out for the first time in her 60s, we want to introduce them to free weights and strength training early,” Druce says. 

woman picks a barbell up off the ground next to her personal trainer
credit: Crunch/CR Fitness

CR Fitness is also embracing AI, using artificial intelligence to analyze data and help personal trainers decide when it’s the right time to reach out to clients to keep them engaged in their training journey. Personal trainers can also use AI to help design workout programs, if they choose. This can be especially beneficial for trainers with large client rosters, Druce notes. 

Overall, Druce believes CR Fitness’ early embrace of AI reflects the company’s entrepreneurial approach since day one.

“We’re willing to take risks,” he says. “I think in business, or anytime you’re an entrepreneur, you have to be willing to take risks. We’re not afraid to adapt because adaptability is what allows you to survive in any business.” 

The post How Crunch’s CR Fitness Created a Winning Personal Training Biz appeared first on Athletech News.

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End-of-Year Checklist: Must-Dos for Fitness Business Owners https://athletechnews.com/end-of-year-checklist-must-dos-for-fitness-business-owners/ Wed, 04 Dec 2024 10:39:00 +0000 https://athletechnews.com/?p=116838 Practical advice from industry veteran Debbie Bellenger on reviewing memberships, planning promotions and streamlining operations As 2024 winds down, fitness studio and gym owners are at a critical moment to reflect on the past year and strategize for a strong start to 2025. While the hustle and bustle of January may feel just around the…

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Practical advice from industry veteran Debbie Bellenger on reviewing memberships, planning promotions and streamlining operations

As 2024 winds down, fitness studio and gym owners are at a critical moment to reflect on the past year and strategize for a strong start to 2025. While the hustle and bustle of January may feel just around the corner, December offers a unique opportunity to pause, evaluate and prepare for success in the year ahead.

To help business owners make the most of this transitional period, Athletech News turned to Debbie Bellenger, a seasoned wellness leader and consultant with decades of industry expertise.

With a career spanning leadership roles in healthcare systems, YMCAs and corporate wellness programs, Bellenger has earned numerous accolades, including a Fellowship from Medical Fitness Association, the 2023 Marla Richmond Educator of the Year Award from the Medical Fitness Association and the 2017 IDEA World Program Director of the Year. Through her consultancy, DB Fitness and Wellness Solutions LLC, she focuses on operational excellence, long-term resilience and delivering measurable value in wellness initiatives.

Here, Bellenger shares her expert insights on how fitness operators can close out 2024 with purpose and step confidently into 2025.

Debbie Bellenger, DB Fitness and Wellness Solutions LLC

Top Priorities for December

When asked about the most crucial tasks for fitness business owners to prioritize in December, Bellenger highlights three key focus areas.

First, she stresses conducting a comprehensive review of 2024 financials. 

“Look at trends, missed goals and identify opportunities for improvement,” she says. “This analysis not only helps owners understand what worked and what didn’t but also provides a foundation for building realistic budgets for the upcoming year.”

Next, she emphasizes the importance of assessing member needs. “Conducting an annual member survey is essential to gauge satisfaction and uncover areas for growth,” Bellenger advises. “This is the time to ask members about their experiences, identify wins and pinpoint future needs for programs, products, and services.”

Finally, she encourages gym owners to celebrate their successes. “Host a year-end celebration —- a holiday party that leans into social fitness can be a great way to bring members together,” she suggests. “Use this event to showcase new offerings for 2025 and create a sense of excitement.”

The Value of Membership Data

Membership data is a goldmine of insights, particularly at year-end. However, Bellenger emphasizes that regular monitoring throughout the year is even more critical.

“Year-end data is important, but monthly reviews of key metrics like new membership units, retention rates, and attrition rates are even more valuable,” she explains. “This ensures there are no surprises when December rolls around.”

Analyzing year-over-year trends and ancillary revenue streams can also reveal new opportunities. For instance, underperforming programs might indicate areas where adjustments are needed. “Data tells the story of your business,” Bellenger adds. “Use it to make informed decisions and refine your approach.”

credit: Africa Images from Canva

Maximizing December’s Potential

Many gym owners fall into the trap of assuming December will be a slow month, but Bellenger advises against this mindset.

“Expecting volumes to drop in December is a common mistake,” she says. Instead, she suggests leveraging the holiday season to build momentum with creative initiatives like wellness challenges, free day passes and open houses.

“Be creative in securing more of the market over the holiday season,” she says. “January is too late to start building traction.”

Operational Efficiencies to Implement

Streamlining operations as the year ends can help gym owners reduce costs and improve member satisfaction. Bellenger recommends these practical steps:

  • Adjust class schedules and operating hours during the holidays to reflect attendance patterns and save staff hours.
  • Encourage members to bring their own mats and towels to promote hygiene and reduce overhead costs.
  • Invest in energy-efficient lighting for long-term savings.
  • Partner with local businesses to offer member discounts on workout essentials like water bottles and apparel, eliminating the need for clubs to stock inventory.

“These small adjustments can lead to significant savings and efficiency gains,” Bellenger notes.

Goal-Setting for 2025

Goal-setting is an essential part of year-end planning, and Bellenger encourages fitness operators to approach this task strategically.

“Look at financial performance from years prior to the pandemic and during the pandemic to create the best future casting,” she suggests.

Breaking budgets into minimum, mid, and maximum scenarios for each line item can help owners prepare for a range of outcomes.

In addition to financial planning, Bellenger highlights the importance of tapping into local markets. “Start with your existing members who own businesses or are involved in local organizations,” she says. “There’s often a lot of low-hanging fruit within your immediate circle of influence.”

Final Advice

To stay ahead of industry trends, Bellenger advises gym owners to invest in ongoing education. “Do your homework and stay informed,” she says. “Attend webinars, conferences and maintain professional memberships to keep up with broader trends like hybrid fitness, wellness integrations and technology adoption.”

As 2024 wraps up, Bellenger leaves fitness operators with a powerful reminder: “Plan for success, not surprises. The work you do in December sets the tone for 2025.”

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Sports Innovation Lab Unveils Fitness Consumer Data https://athletechnews.com/sports-innovation-lab-fitness-consumer-data/ Tue, 03 Dec 2024 15:32:42 +0000 https://athletechnews.com/?p=116719 In partnership with ATN, Sports Innovation Lab is releasing “fitness communities,” a new way to analyze consumer spending data across health, fitness and wellness The fitness industry is changing rapidly. Many brands are incorporating new technologies to keep members loyal and increase incremental revenue, while expansion, consolidation and bankruptcy filings are changing the face of…

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In partnership with ATN, Sports Innovation Lab is releasing “fitness communities,” a new way to analyze consumer spending data across health, fitness and wellness

The fitness industry is changing rapidly. Many brands are incorporating new technologies to keep members loyal and increase incremental revenue, while expansion, consolidation and bankruptcy filings are changing the face of gyms and studios across the country. One trend driving the industry’s transformation is a growing interest in new health and wellness solutions. This goes beyond supplements to include everything from GLP-1 weight-loss drugs to the latest recovery offerings

Amid this backdrop, Athletech News is partnering with Sports Innovation Lab, an insights, analytics and data company that works with the biggest brands in sports, media and entertainment, to provide fitness industry stakeholders with key data on their consumers and the industry at large. 

Through the partnership, Sports Innovation Lab and ATN will develop in-depth consumer profiles of fitness and health enthusiasts. Known as “fitness communities,” these profiles will give brands next-level insights into their current and potential customers. 

“Fitness enthusiasts are not all alike,” said Sports Innovation Lab co-founder and CEO Josh Walker, who oversees the company’s proprietary market intelligence platform. “Working with Athletech News and receiving their ongoing expertise on this population will strengthen our understanding of ‘Fluid Fan’ behaviors, which benefits our customer base through better data and addressable marketing audiences. Brands have a new powerful tool to reach this market.”

Fitness Communities Based on Observed Spending Data

The fitness industry continues to change, but dominant consumer behaviors will always inform how marketers reach the right customers. Some consumers love taking classes and need group fitness to motivate them to work out; families and higher-income fitness consumers typically want the benefits of an all-inclusive fitness center. 

Fitness community profiles are based on consumer spending patterns and are designed to help brands target the right customers.

infographic featuring fitness industry market segmentation, with gym brand logos
credit: Sports Innovation Lab

Class Curators

These active fitness enthusiasts are spending on boutique fitness classes such as F45 Training, SoulCycle, Orangetheory Fitness, Rumble Boxing and The Class, and may also subscribe to Class Pass. Class Curators are:

  • 9X more likely to own a wearable device than the general population
  • 7X more likely to go skiing
  • 6X more likely to attend concerts

Luxury Lifters

For Luxury Lifters it’s all about a premium health club experience. They’re spending with luxury fitness facilities like Equinox, Life Time and Chelsea Piers Fitness, and/or purchasing premium subscriptions to enjoy added services. Luxury Lifters are:

  • More likely to be Gen X or Baby Boomers making more than $200K/year
  • Spending more on sports tickets and live events than any other community
  • Spending with book retailers like Barnes & Noble and independent bookstores (30% of this population)

Gym Goers

Your traditional exercise enthusiast, the Gym Goer prefers a no-frills, traditional gym to give them a more classic workout. They’re purchasing memberships from large brands like Gold’s Gym or local gyms. Gym Goers are:

  • More likely to be male, without children in the household 
  • Frequently shopping on social media such as Instagram and Facebook
  • 3X more likely to spend on “sportainment” establishments such as Topgolf or Chicken N Pickle

Deal-Driven Fitness Fans

Most often found in high-value, low-price (HVLP) gyms, these consumers typically come in the new year, are seasonal in their fitness purchases and often looking for a deal. They may make exercise an always-on part of their routine, but throughout the year they continually purchase new and different fitness/wellness products and subscriptions – especially if there’s a deal to be had. Deal-Driven Fitness Fans are:

  • 3X more likely to purchase hydration beverages 
  • Frequent QSR visitors, spending with Taco Bell, McDonald’s and Chipotle
  • More likely to have tween/teen children in the household

Game-Changing Data for Fitness Brands 

In the weeks and months ahead, Sports Innovation Lab and ATN will be rolling out key insights into the spending behaviors of these fitness communities, creating an actionable new source of data for fitness and wellness marketers, executives and entrepreneurs. 

These insights will leverage Sports Innovation Lab’s Sports Data Cloud, which covers hundreds of health and fitness brands, allowing us to create customizing audiences for each category including workout classes, home fitness, luxury and premium health clubs, subscription workouts, athleisure wear, equipment and more. 

For more information on how you can leverage Sports Innovation Lab data to create custom audiences that meet your brand’s marketing goals for your New Year’s campaigns and beyond, email audiences@sportsilab.com.

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CEO Corner: How Rich Nelsen Turned Vasa Fitness Into a Gym Giant https://athletechnews.com/ceo-corner-rich-nelsen-vasa-fitness-gym-exclusive-interview/ Wed, 27 Nov 2024 17:31:58 +0000 https://athletechnews.com/?p=116553 Under Nelsen, Vasa has become one of America’s top low-price gym brands, currently operating 61 locations in eight states Few gym brands are as hot as Vasa Fitness, which has quickly emerged as a serious competitor to low-price giants like Planet Fitness, Crunch Fitness and the like.  The Greenwood Village, Colorado-based Vasa has taken the…

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Under Nelsen, Vasa has become one of America’s top low-price gym brands, currently operating 61 locations in eight states

Few gym brands are as hot as Vasa Fitness, which has quickly emerged as a serious competitor to low-price giants like Planet Fitness, Crunch Fitness and the like. 

The Greenwood Village, Colorado-based Vasa has taken the high-value, low-price (HVLP) gym world by storm since its founding in 2014, expanding to 61 locations in eight states across the Midwest and Mountain West, with ambitious plans for further expansion.  

The man behind much of that growth is Rich Nelsen, the CEO of Vasa Fitness who took that position in 2018 after stints at Starbucks and In-Shape Health Clubs (now In-Shape Family Fitness).

Under Nelsen, Vasa has been certified multiple times as a Great Place to Work, has added Studio, a new boutique fitness-style offering, and has built out its executive team with industry-leading talent. 

Nelsen sat down with Athletech News to discuss his first six years at the helm of Vasa, give his thoughts on the future of the HVLP gym industry and share some details on Vasa’s expansion strategy in the years ahead.

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 join Vasa Fitness as its CEO in 2018?

Rich Nelsen: I left Starbucks in 2016 after a pretty good career there. I ran most of the middle part of the U.S. for a bit of a time, then I ran Europe and the Middle East for two and a half years, then Latin and South America for the balance of my time. I essentially learned Starbucks’ business from the ground up and then spread that knowledge and experience across many franchisees all over the world, in 54 countries.

I said I’d never leave Starbucks unless I could be the CEO of a fitness brand. And so it happened – I moved to California to become part of (In-Shape Health Clubs). I was lucky to have a lot of people surrounding me who knew the industry well, and I was able to bring the Starbucks experience to life through a fitness brand. 

Then I got connected with Vasa and Silver Oak (Services Partners), our current private equity partner, who asked me if I’d like to move back home to Denver, Colorado, to expand the brand. The rest is history. 

headshot of Rich Nelsen
Rich Nelsen (credit: VASA Fitness)

ATN: What did you bring to the fitness industry from your time at Starbucks?

RN: Understanding the customer. One of the things Starbucks is known for is really knowing customer behaviors. Running two international markets, I learned that while customers are all the same, they’re also very different in terms of how they consume the product, experience the product and experience customer service. 

The fitness industry was very slow to evolve. Other than the $9.99 (monthly membership) price point, not much was evolving six years or eight years ago. It’s evolving now as the consumer becomes more demanding and has higher expectations. We’re here to solve some of those problems. 

ATN: Take us back to 2018 when you started at Vasa. What were your early priorities for the brand?

RN: First of all, we’re a company founded in Utah and primarily based in Utah (Vasa’s HQ recently relocated to Colorado). We had aspirations to grow outside of Utah, and so we had to understand the consumer in Utah but also the consumer in other surrounding states that we wanted to do business in, and learn to professionalize the brand so that it would be approachable (there).

Number two was professionalizing the organization. We were a small company with 23 locations, growing one (gym) at a time – we wanted to grow eight to 10 at a time, so we had to professionalize everything from accounting to fitness to marketing. It was a combination of leveraging the strengths internally of the organization – people who had been there a long time – and bringing some new thought leaders into the organization to leverage their skills. 

ATN: Vasa has expanded quickly over the last few years, now counting 61 gyms. What separates Vasa from other HVLP gym brands?

RN:I think we built an employee culture that is second to none. It’s the third year that we’ve been certified by Great Place to Work, and if you talk to the people in the organization, we all believe we can be better than we even are today. That energy translates to our members, and it’s why we treat our members better than anyone else.  We believe we have the highest usage rates in the industry. In an industry where not everybody wants you to come to the gym, our brand lives off the energy of people actually visiting. We know our retention success is largely attributed to people actually using the gym. 

We also think our extra amenities have added a great deal of value. We created Studio almost seven years ago on the belief that we could do boutique fitness for HVLP inside of our gym. We have over 1,000 members per club (using) our Studio product currently. So we’ve sort of become the mall of fitness, if you will. We have your basic Gap store, we have your Abercrombie store, and then we have Tiffany – Tiffany is probably a stretch, because we’re $44, but you get my point. 

exterior of a Studio fitness class at VASA Fitness
Studio room at VASA Fitness (credit: VASA Fitness)

The third thing is we professionalize marketing, so we begin to talk to our consumers in a different way about how the brand could change their daily lives, as opposed to, “Hey, we’re here to sell $9.99 (memberships).” 

ATN: How has the gym floor evolved at Vasa over your six years as CEO, particularly since the pandemic? 

RN: We already talked about Studio, so I won’t keep beating that drum. You have a trend going on right now with strength (training) amongst men and women. You’ll see changes in our equipment, with more lower-body lifting equipment and more free weights as opposed to machines. Our new clubs average somewhere between eight and 10 Olympic platforms per club. We were the first to start that and now you see other people doing it. We studied where the trends were in college students seven years ago, and we started adding platforms back then. 

We (also) started taking out racquetball to (add) Studio. And cycling has slowed quite a bit via the pandemic – people bought cycles at home or bought bicycles to ride, so classes aren’t as popular as they once were.

ATN: How do you think HVLP gyms might continue to evolve over the next few years?

RN: I think it’s going to be more individual and more customized. We’re going to need to create spaces inside the gym where it feels like you’re a part of something even bigger. Studio is our way of currently articulating that – you can become part of Studio, you have your friends in the Studio community, you might go to (traditional) group fitness and be part of that community, and then you might be on the free-weight floor as a part of that community. 

weight room floor at a VASA Fitness gym
credit: VASA Fitness

ATN: Vasa is corporate-owned, which is a different model than most of your HVLP gym competitors who sell franchise licenses. What’s behind this decision? 

RN: I get this question all the time from people who want to franchise. I would just say, we’re in the journey of the brand where we want to control the outcome, and we’re building a brand not opening gyms. Right now, I don’t feel comfortable letting somebody else be in control of the execution behind that.

(Franchising) certainly could be a possibility when we feel like we’ve nailed the execution of the brand and have the ability to share that with others. Today, we’re not ready. 

ATN: Vasa has already expanded quite a bit across the Midwest and Mountain West, with gyms in eight states. What are your expansion goals over the next few years?

We could grow to as many as 100 units in five years. We have the current capacity to grow 20 units a year. I think you could look anywhere in the U.S. where a state doesn’t touch the ocean and you could see a Vasa there. We’re going to be primarily Mountain West to Midwest, getting closer to the East Coast. We have LOIs in several states from here to there. 

ATN: Why does Vasa prefer to stay away from the coasts right now?

RN: We do incredibly well in the Midwest states. Our brand is regenerating communities that have been left behind. We don’t want to change our pricing strategy to not be uniform. One day, we may. Also, I don’t want to get into politics, but it’s more complicated to do business in those states.

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Tracy Anderson Talks Fitness Method, Franchising Goals    https://athletechnews.com/tracy-anderson-fitness-method-franchising-goals-disrupt/ Tue, 26 Nov 2024 23:20:33 +0000 https://athletechnews.com/?p=116508 This article is part of ATN’s DISRUPT 2024 video series, featuring can’t-miss conversations with the biggest executives in fitness and wellness. To watch DISRUPT content, click here Tracy Anderson might be best known for her early work training celebrities like Gwyneth Paltrow and Jennifer Lopez, but she’s not resting on those laurels.  Speaking during ATN’s DISRUPT 2024 video…

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This article is part of ATN’s DISRUPT 2024 video series, featuring can’t-miss conversations with the biggest executives in fitness and wellness. To watch DISRUPT content, click here

Tracy Anderson might be best known for her early work training celebrities like Gwyneth Paltrow and Jennifer Lopez, but she’s not resting on those laurels. 

Speaking during ATN’s DISRUPT 2024 video series, Anderson, founder of the Tracy Anderson Method, explained that she wants her current work in fitness and wellness to speak for itself. 

“They’re amazing people, amazing women and they did so much to raise the awareness for my life’s work – and I have immense amounts of gratitude for that,” Anderson said of her affiliation with celebrities. “But my work is much deeper than that.”

Despite her massive social media following, Anderson prefers to avoid celebrity-driven marketing, which has long been popular in fitness.

“Where I sit today is, ‘I won’t participate in those conversations,’” she said. “You’ll never see me posting with a celebrity client or using any … sort of consumeristic commodity to play games with people’s well-being.”

headshot of Tracy Anderson
credit: Tracy Anderson

During DISRUPT, Anderson sat down with Athletech News founder and CEO Edward Hertzman to share her unique approach to the business of fitness, including what makes the Tracy Anderson Method distinct from other workout concepts, her thoughts on the podcasting industry and her plans for brick-and-mortar studio expansion. 

What Is the Tracy Anderson Method?

While Anderson might’ve risen to fame by training the likes of Paltrow and J Lo, these days she’s also known for the Tracy Anderson Method, a comprehensive fitness routine centered around high-rep, low-weight exercises that also incorporates elements of mat Pilates, dance cardio and other functional movement elements. 

Anderson said the method was developed based on the results of a five-year study she conducted over 20 years ago, which measured 150 different women to find their ideal fitness routines. 

“My mission was never to start a brand or a business or to be entrepreneurial,” Anderson said of her early days in the fitness industry. “It was to help us in our human experience be closer to our bodies and … understand what we can and can’t control in them.”

Today, the Tracy Anderson Method is practiced at studios in New York, Los Angeles, London and Madrid. It’s also available online through a subscription.

For Anderson, the method is about more than just fitness. 

“I’m interested in a much more holistic picture,” she said. “I really believe you cannot separate the physical body from the intellectual, spiritual, emotional – you can’t separate these aspects of yourself.”

Interior of a Tracy Anderson Method Studio (credit: Tracy Anderson)

“I think people fear what I do in a lot of ways, because they’re like, ‘No, I need to go and just lift a weight,” she added. “And I’m like, ‘It’s fine. Go lift a weight, (but) you’ll never, ever experience what I experience in my body.’”

On the Podcast Experiment

On her business philosophy, Anderson noted that she’s quick to pivot away from things that don’t fit into her core values, no matter how lucrative they could become. 

She launched a podcast, “The Longevity Game with Tracy Anderson,” in January, but realized that the podcasting game wasn’t exactly what she had in mind. 

“I’ll say yes for a bit for anything, but I’ll be very fast to change anything that doesn’t feel like it’s worth my time,” Anderson said. “I started interviewing people, and … I couldn’t wait to get off. I was like, ‘I’m just letting you spiel your spiel to my audience that I care so deeply about, and I don’t believe in it.’ I didn’t want to be a platform that just needed to find guest after guest.”

Anderson still releases episodes of the podcast periodically, but only with guests whose message she personally endorses. 

“If I’m publishing a podcast, it’s like, ‘Oh gosh, pay attention. She likes this person,’” she said. 

On Franchise Expansion

Anderson also touched on her expansion plans for Tracy Anderson Method Studios, which recently began franchising to drive more growth. 

Anderson explained that she was against expanding the brand through franchising for a long time but finally came around to the idea, urged by demand from her Tracy Anderson Method community members and encouragement from her attorney, who felt strongly that it was the right business move. 

The first franchised Tracy Anderson Method Studios are set to open in Miami (two upcoming locations) and Bozeman, Montana. 

While Anderson will pursue franchise expansion, don’t expect to see Tracy Anderson Method studios in every town and city in the U.S. – the brand will be highly selective about the markets it chooses to enter and the franchisees with whom it chooses to partner. 

“We’re only approving people who really love my life’s work and have found a closer relationship with themselves through it,” Anderson said. “They undeniably know why it’s special, why it’s unique and why it has its place in the market.”

After a call with the franchise group bringing the Miami studios to life, Anderson is excited about the future.

“I’m so excited for the communities that are going to get these incredible people who are taking on the big, huge step of being business owners, and they’re bringing my method forward to their markets,” she said. 

To watch Anderson’s interview in full, click here.

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Private Equity Sees Big Future for Anytime Fitness https://athletechnews.com/private-equity-sees-big-future-for-anytime-fitness/ Tue, 26 Nov 2024 15:59:17 +0000 https://athletechnews.com/?p=116244 Anytime’s ability to win in small markets gives it an edge over other gym brands, some investors and operators believe Private equity money has flooded into big-box gyms since the pandemic, but the smart money could be headed to clubs that occupy a smaller physical footprint.  Rainier Partners, a Seattle-based private equity firm that invests…

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Anytime’s ability to win in small markets gives it an edge over other gym brands, some investors and operators believe

Private equity money has flooded into big-box gyms since the pandemic, but the smart money could be headed to clubs that occupy a smaller physical footprint. 

Rainier Partners, a Seattle-based private equity firm that invests in lower middle-market services businesses, has identified 24/7 gym brand Anytime Fitness as a prime target for investment and expansion. 

“There are a lot of towns (in the United States) that deserve an Anytime Fitness but don’t have one,” Rainier vice president Jonathan Lo tells Athletech News. 

Size Matters: The Case for Anytime Expansion 

While Anytime Fitness already has over 2,000 gym locations in the U.S., Lo believes there’s significantly more room for growth, particularly in smaller towns and cities across America. 

According to Lo, Anytime is better positioned to succeed in small markets than big-box gym brands like Planet Fitness, Crunch Fitness and LA Fitness, which typically require anywhere from 20,000 to 40,000 square feet to operate. 

An Anytime Fitness gym, by contrast, typically takes up between 4,000 and 6,500 square feet. Smaller size translates to lower upfront and overhead costs, meaning franchise owners don’t need to sign up as many members to make their location profitable. 

“We’ve found that Anytime can do quite well in smaller markets,” Lo says, defining those markets as towns with trade areas as low as 20,000 to 30,000 people. “To support a Planet Fitness, you need anywhere from 5,000 to 10,000 members to make the math work right to support the rent and build-out costs. Our typical gym has 500 to 1,000 members.”

woman works out on a cable machine at Anytime Fitness
credit: Purpose Brands/Anytime Fitness

In November 2023, Rainier acquired Omega Fitness Holdings, one of the largest Anytime franchise groups in the U.S., announcing plans to grow Omega’s portfolio of gyms. In September, the Rainier-backed Omega acquired 21 Anytime gyms in Wisconsin amid steady expansion.

In the 12 months since the acquisition, Omega has grown its Anytime Fitness portfolio from 64 gyms to over 120, establishing a presence in California, Florida, Illinois, Minnesota and Wisconsin.

Rainier and Omega are eyeing even more growth in the years to come. 

“We feel confident in getting to at least a couple hundred gyms over the next few years,” Lo says, adding that that expansion will include opening new clubs from the ground up and strategic acquisitions.

A System That’s Ripe for Consolidation

While opening new gyms is enticing – and profitable – the Rainier and Omega teams also see plenty of opportunity to acquire existing Anytime locations and bring them under the Omega portfolio. 

Pedro Belmontes, the chief operating officer at Omega, notes that around 70% of Anytime Fitness locations in the U.S. are single-unit operated, meaning the owner of that gym owns only one location. As of 2023, around 90% of Anytime franchisees owned three locations or less.

That makes the system “deeply fragmented,” Belmontes says, meaning there’s plenty of opportunity for large franchise groups like Omega to come in, acquire gyms and streamline business practices. 

“When you have a deeply fragmented system, you get Taco Bell in the ‘90s,” Belmontes says, alluding to the fast-food chain’s growth trajectory. “As an investor, you have a unique opportunity to roll up those single unit operators and standardize operations.”

For Omega and Rainier, standardizing operations also means injecting new capital into older Anytime Fitness gyms to make them more appealing to modern consumers, particularly Gen Z. 

“We’re buying a lot of gyms that could use a refresh or an improvement,” Lo notes. “We think it’s an interesting opportunity to reinvest in our gyms, making them better and providing a better experience to the consumer. In return, we get a stickier customer base that loves to come into the gym.”

Interior of an Anytime Fitness gym
credit: Purpose Brands/Anytime Fitness

Investors being interested in franchised gym brands isn’t anything new. Private equity money has flooded into fitness franchises since the pandemic, but much of it has gone to high-value, low-price (HVLP) gym concepts like Planet Fitness and Crunch. 

Lo and Belmontes believe smaller-sized gym brands like Anytime Fitness are a better bet, at least in 2024. They point to Anytime’s competitive advantage as the dominant player in the “mid-market, small-box” gym space, giving it a buffer from high levels of competition in the big-box world, which includes brands like Planet and Crunch on the HVLP side and LA Fitness, 24 Hour Fitness and Gold’s Gym on the slightly more expensive end of the spectrum. 

Anytime Fitness might be a true diamond in the rough – dispute being seemingly underappreciated by investors, it’s one of the biggest fitness brands in the world with over 5,000 locations worldwide, and it figures to have access to even more resources following a merger with Orangetheory Fitness

“It almost feels like Planet Fitness a decade ago before private equity got (there),” Lo says of Anytime Fitness, noting the relative lack of gyms in the system owned by private equity. “There’s 2,000-plus gyms that aren’t private equity-owned that we could potentially go after in the United States and over 5,000 globally.”

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Can Reform RX Create a Connected Pilates Revolution? https://athletechnews.com/reform-rx-connected-pilates-revolution/ Fri, 22 Nov 2024 20:19:07 +0000 https://athletechnews.com/?p=116049 Makers of a Pilates reformer that comes with a touch screen and tracks metrics including heart rate, Reform RX has struck partnerships with luxury hotel chains including Mandarin Oriental and The Savoy Pilates is booming, with class attendance numbers reaching record highs and equipment sales projected to surge over the rest of the decade.  But…

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Makers of a Pilates reformer that comes with a touch screen and tracks metrics including heart rate, Reform RX has struck partnerships with luxury hotel chains including Mandarin Oriental and The Savoy

Pilates is booming, with class attendance numbers reaching record highs and equipment sales projected to surge over the rest of the decade. 

But the modality might be missing something. Despite a rise in popularity in recent years (ClassPass bookings were up 92% in 2023), Pilates has been mostly left out of the connected fitness conversation. While brands like Peloton, Hydrow and Tonal have raced to innovate in cycling, rowing and strength training, respectively, Pilates equipment is still decidedly low-tech. 

Reform RX is out to change that. 

Founded by former professional dancer turned Pilates studio owner Yvette McGaffin and her husband, Neal McGaffin, Reform RX makes digitally connected Pilates reformers that feature large touch-screens, on-demand classes, and the ability to track workout metrics such as calories burned and heart rate. 

“There’s been no innovation in the industry for 50 years now, nothing in the tech space at all for reformer Pilates,” McGaffin tells Athletech News, noting that while Pilates has become highly popular, it’s still intimidating to some newcomers. “We thought, ‘How is this modality going to reach more people? That, in essence, was our vision in starting Reform RX.”

Reform RX CEO Yvette McGaffin
Reform RX CEO Yvette McGaffin (credit: Reform RX)

McGaffin believes Reform RX can bring Pilates into the digital age in the same way brands like Peloton have modernized cycling.  

Pilates may be an especially good candidate for connected fitness tools like virtual coaching. While popular, the modality is far from intuitive – many people simply don’t know what to do when they get on a reformer for the first time. 

“It’s one of the true areas where you do need to have a virtual experience because you don’t really know what to do by yourself,” McGaffin says of Pilates.

Anatomy of a Connected Reformer

Modeled after a Formula 1 race car, Reform RX’s flagship connected reformer machine features a 21.5” HD touchscreen that comes loaded with over 150 on-demand workouts, but its intelligent features go beyond that. 

The reformer features a smart spine that uses lasers to track movement down to the thousandth of a second, giving users real-time data on their power output, calories burned and heart rate while working out. Reform RX also ditches the springs found on traditional reformer machines in favor of a push-button system. Additionally, a Pilates chair is built into the design and can be pulled out for additional exercises. 

On top of all that, the Reform RX is quieter, more comfortable and more visually appealing than traditional reformers, McGaffin believes. 

“It’s like a Porsche as opposed to a Peugeot,” she says. “It sounds cooler, it looks cooler and it gives so much feedback.”

wide shot of an Reform RX Pilates reformer
credit: Reform RX

Bringing Pilates into Hotels, Gyms & More

It’s early days for Reform RX, which didn’t start pre-orders on its connected reformer until 2022, eventually selling out its first batch in the first quarter of 2023. But the early returns are promising. In September, the company landed $5.1 million in funding to drive global expansion and enhance the user experience. Earlier this month, the brand released the Model S, a smaller version of its signature reformer that features all the same functionality, minus the chair attachment. 

In the spirit of democratizing access to Pilates, McGaffin says Reform RX is looking to get its reformers into spaces that traditionally haven’t featured Pilates. That includes gyms, hospitality, multi-unit housing complexes and people’s homes. 

On the hospitality front, the brand already has partnerships with Mandarin Oriental, The Savoy and One Crown Place, along with The Ned, Casa Cipriani and other luxury hotel chains.

McGaffin says luxury hotels have been highly receptive to the idea of placing connected Pilates reformers inside of their fitness centers, especially as the wellness tourism sector booms

“The list is growing rapidly. … These amazing brands want to offer a premium Pilates experience that matches, or if not goes beyond, the studio experience because it’s so immersive,” she adds.

The Case for Connected Pilates Studios

McGaffin also believes traditional Pilates studios can benefit from connected reformers. Studio owners can leverage Reform RX’s advanced metrics to create more personalized and immersive experiences for their members. The brand just released a new feature, MyScore, which tracks users’ heart rate and incorporates that data into workout routines. 

Studios can also supplement in-person instruction with virtual classes that take place on Reform RX machines in case an instructor isn’t available. McGaffin, a former studio owner, believes this is especially helpful as some Pilates brands struggle to hire enough staff to keep up with surging demand.

“We’re driving revenue for studio owners and operators for a hybrid model,” she says. “You can have this very personalized, top-tier, premium virtual offering in time that was dead time; now, that’s additional revenue.”

woman does a workout on a Pilates reformer
credit: Reform RX

While there’s still significant work to do to get a critical mass of people comfortable with the idea of a connected reformer experience – Pilates is a highly traditional fitness modality steeped in tradition –  McGaffin and her team believe that, in time, Reform RX will become the standard inside studios, gyms and everywhere else. 

“There’s a Henry Ford quote, ‘If I asked people what they wanted, they would have said faster horses,’” she says, paraphrasing the famous businessman. “People don’t know there’s another way until innovation comes in to disrupt.” 

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AG1 Is More Than Just a Greens Powder, CEO Says https://athletechnews.com/ag1-more-than-greens-powder-ceo-says/ Thu, 21 Nov 2024 22:33:31 +0000 https://athletechnews.com/?p=115992 AG1 CEO Kat Cole explains why the brand moved away from the ‘Athletic Greens’ name as it looks to continue its rise in the supplement space In a world of nutritional get-rich-quick schemes and hyperbolic claims about the power of supplements, AG1 is different.  At least, that’s the conviction of Kat Cole, who took over…

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AG1 CEO Kat Cole explains why the brand moved away from the ‘Athletic Greens’ name as it looks to continue its rise in the supplement space

In a world of nutritional get-rich-quick schemes and hyperbolic claims about the power of supplements, AG1 is different. 

At least, that’s the conviction of Kat Cole, who took over as AG1’s CEO earlier this year after a three-year stint as the supplement maker’s president and chief operating officer.

“AG1 is incredibly comprehensive, daily, foundational nutrition,” Cole told Athletech News during the recent Eudemonia summit, which gathered some of the biggest names in longevity, medicine and fitness, including executives, doctors and influencers, all under one roof.

While it’s marketed as a multivitamin, probiotic and greens powder all rolled into one, Cole is quick to note that AG1 isn’t a silver-bullet product. Instead, it’s designed to be the foundational piece of a person’s nutrition regimen, eliminating clutter in your vitamin drawer, or “supplement stack” as it’s known in industry circles. 

AG1, of course, doesn’t replace everything for everyone, but man does it simplify the foundation of that stack,” Cole says. 

AG1 package
credit: AG1

A former executive at Focus Brands (now GoTo Foods), the parent company of restaurant chains including Cinnabon, Jamba Juice and Moe’s Southwest Grill, Cole has become something of an evangelist for health and wellness startups. 

While some might be skeptical of a former fast-food executive running a supplement company, Cole says she’s deeply connected to the mission of healthy living. The AG1 CEO personally became interested in nutrition during her time at Focus Brands, even becoming an angel investor in early-stage health and wellness companies on the side. 

At Focus Brands, Cole worked to get fast-food chains on board with the healthy eating movement in whatever way she could. 

“I just tried to make each of the brands as authentic and healthful as possible. For Cinnabon, that meant stick with real sugar, don’t put in artificial sweeteners and launch smaller portions,” she explains. “For Jamba Juice …it meant cutting the sugar while keeping the brand true to what it was and adding in more protein and plant-based options. For Moe’s Southwest Grill, that meant moving to a more paleo-keto bowl structure instead of just burritos and queso.”

After leaving Focus Brands in 2021, Cole connected with AG1 founder Chris Ashenden, joining the company later that year after experiencing its benefits as a consumer.  

“I was so passionate about the product, and everything I learned once I got underneath – the quality, the science, the rigor – I was blown away,” she says of her early encounters with Ashenden and the AG1 team. 

What’s in a Name? The Shift Away from Athletic Greens

Around that time, the brand moved away from the name “Athletic Greens” in favor of AG1. Cole noted the new branding reflects the reality that AG1 is more than just a greens powder. 

The move also allowed the brand to differentiate itself from copycat greens-powder concepts, many of which have entered the market in the years between Ashenden launching Athletic Greens in 2010 and the Nevada-based brand reaching a $1.2 billion valuation in early 2022. 

Plus, a name like “AG1” is easier to build around in the future as the company potentially expands its product line.

“We needed a naming convention that could hold future innovation, and ‘Athletic greens’ is a weird thing to try to bend into another product pretzel,” Cole explains. “AG1, you can imagine some of the variations that could occur as we innovate in the future.”

While it no longer has “greens” in the name, AG1 still sells only one product: a powder-based formula that contains 75 ingredients spanning vitamins, minerals, probiotics and whole-food-sourced ingredients, all of which are designed to help people improve their energy levels, cognitive function and gut health/digestion. 

Users are instructed to mix a scoop (or travel packet) of the powder into eight to 10 ounces of cold water every day, ideally in the morning on an empty stomach for optimal results. The company notes on its website that it typically takes one to three months to feel benefits. 

woman pours AG1 powder into a water bottle
credit: AG1

AG1 has become a hit on social media and has leaned into partnerships with figures including Joe Rogan and Dr. Andrew Huberman, both of whom have touted the product’s benefits on their podcasts.

But Cole says that’s not the main reason for AG1’s impressive sales numbers. AG1 is popular, she believes, because it works for people, and they in turn tell their family and friends, creating powerful word-of-mouth marketing.

“People will say, ‘How do you get that big with one product?’ and there are two answers: One, it’s so high quality, people drink it every day and tell their friends, and that adds up,” she says. 

The other answer is that more women and people over the age of 55 have taken AG1 in recent years, spurred by word of mouth but also the growth of the longevity movement.

“Our customer base is 50/50, male and female,” Cole says. “And in the last few years, the acquisition of new customers has skewed female. That was not the case five years ago; it skewed male.” 

Leading with Science

Looking ahead, Cole says AG1 will focus more on “marketing the science” of why its product works. 

In recent years, the brand has spent a lot of money in developing its research arm, including hiring a team of PhDs to oversee the development of clinical trials on the efficacy of AG1’s formulation. The AG1 website now includes a “research” tab where consumers can see a breakdown of studies on the powder’s effectiveness. 

Putting science front and center will be important in the years ahead as AG1 looks to distance itself from competitors, Cole believes. 

“That’s definitely one of the ways we differentiate for a premium product, and it’s where the industry is going to have to go,” she says. 

woman in a field with AG1 bottle
credit: AG1

Other strategic priorities include exploring retail opportunities – AG1 has been almost exclusively direct-to-consumer since its founding but Cole says as the company evolves it will need to enter more brick-and-mortar spaces to  “meet consumers where they are.”

Currently, AG1 has partnerships with select brands in the hospitality, lifestyle, wellness and fitness spaces. In the future, the brand could look to enter the shelves of grocery retailers, although nothing’s been confirmed yet. 

New products could also be on the horizon. But Cole says AG1 won’t stray too far from its current offering.

“We don’t want to be everywhere and we don’t want to be everywhere at once,” she says. “(We’ll) stay true to what we are uniquely good at – so incredibly comprehensive, daily, foundational nutrition, which only leads us to a few categories. We’re not going to start selling a million individual bottles of vitamins and minerals.”

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