With immense growth over a 10-year period, we felt the need to reach out to some of the bigger names in the industry to learn what they’ve seen within their own clubs over the past 10 years.
“In answer to the report, yes, we have grown over the last 10 years,” explained Joe Cirulli, the founder of Gainesville Health and Fitness. “I would guess a lot of growth, however, is due to a major increase in the number of clubs, more than anything.”
Billy Malkovich, the CEO of Mountainside Fitness, concurred with Cirulli, stating that from 2003 until present day, their membership base has increased by 550 percent. “Some of that is the result of [current] store growth, but the majority is the result of expansion,” he explained.
Malkovich said that most people would over complicate industry growth, but to him the equation has been simple. “Greater access usually leads to greater consumption,” he explained. “Take light for example. Until the early 1900’s, candles were our chief source of light. They were expensive (relatively) and access to them was limited. Candles were used for basics such as lighting your home or business. Today, we have so much access to light sources that we put them in kids’ shoes. In the past century our need for light hasn’t changed, delivery and access has.”
His analogy stays in point with Cirulli’s early idea that with growth has come growth. More clubs has equated to the growth of membership within the industry.
Sabarras George, the executive director of strategic wellness at Sparrow Michigan Athletic Club, said that he believes the growth is from an “emphasis being put on increasing activity in life, and media has started linking the benefits of increased activity to mind/body. Thus, young, as well as older and deconditioned individuals, are becoming more active. Of course, from the orthopedic side, personal trainers are becoming more educated in training for body balance versus looking better.”
For Anytime Fitness’ Chuck Runyon, the company’s co-founder, the best year as an entire Anytime Fitness system was in 2012. “There are many factors fueling the growth of fitness consumers,” he said. “External pressures from employers, new reimbursement or pay per visit programs from health insurance providers, inching awareness about the need for regular physical activity from the medical community, amplified conversations around adult and childhood obesity from the government and the media, and the hyper-fragmented, fast growing fitness industry that provides every consumer with convenient, affordable or a specific niche offering.”
Regardless of what shifts we see in media or government, as Runyon said, one major factor has been the perceived growth of the fitness industry, in terms of club numbers, in the last decade. Jeff Skeen, the president and CEO of Titan Fitness, said he has seen growth within his clubs over the past eight years, due in part to new store openings.
Additionally, Skeen attributed growth to “greater awareness by the public that fitness is critical to reducing health care costs. Over the last two years, we have seen a dramatic increase in our membership, due to us moving to a lower price point on our memberships.”
Clearly, growth in the industry, in terms of club numbers, has also spurred growth in membership numbers. As Malkovich stated in his candle analogy, its only common sense that it would grow in that way.
However, with the growth of club numbers, we have also seen the change in price points. No longer are members provided with a one solution of $49.95 for fitness. Today membership options include month-to-month dues at $10 a month, even up to cresting the $100-a-month mark. With the growth of the industry, the consumer has seen a vast transition in opportunity. These transitions will continue to spur growth in terms of club numbers, and, in candle theory, continue to grow membership numbers.
By Tyler Montgomery
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Rachel Zabonick-Chonko is the editor-in-chief of Club Solutions Magazine. She can be reached at rachel@peakemedia.com.
