Close to 10 years ago, Ed McNeill was looking for a new type of business to invest in, and the health club industry intrigued him. As a result, he purchased a 66,000-square-foot space, obtained a license and opened a Gold’s Gym.
However, as the health club market evolved in his town of Lawrenceville, New Jersey, he came to the conclusion that his club needed to change as well in order to compete.
According to McNeill, low-budget franchises such as Retro Fitness and Planet Fitness entered his market, in addition to boutique clubs such as Orangetheory Fitness. “And then you had the hospitals,” he continued. “Since I started, we had three hospitals open up their own health clubs. So we had to make a decision — where were we going to be in the marketplace?”
McNeill decided that going the family fitness route was the best option. “Whenever we had kids programming, it was very well received by the members,” he said. “So I [asked], ‘What is the best decision for my business?’ And that was becoming a multi-generational club.”
In January 2014 the gym transitioned into the New Jersey Athletic Club, shedding the Gold’s Gym name. The club now has much more of a family focus and is in the midst of a renovation to realize this transition. The makeover will expand the club to 90,000 square feet and add a number of amenities, including a running track, basketball court and a rock climbing wall.
“We’ll be able to offer 30 kids classes a week — everything from gymnastics to karate to boxing to basketball — whatever it might be, we’ll have it,” said McNeill. “Our model will be very similar to what the YMCAs have.”
Although the emphasis on family fitness is fairly new to the club, McNeill explained the emphasis on community has been around since the beginning. As reference, he thought back to Hurricane Sandy, which hit the East Coast in October 2012. “During Hurricane Sandy, for some strange reason we were the only ones that didn’t lose power,” he said. “So one of the things we did is we put out in the newspaper that anyone that wanted to come in and take a shower, get warm or use the Internet, they were more than welcome to. We opened it up not just to our members, but to anybody in the community.”
In addition, the club has a Community Partner Program, in which it partners with local businesses. If members show their New Jersey Athletic Club key card to one of the club’s partners, they can receive a discount or other benefit. “[Local businesses] have been very good working with us to encourage their customers to come to us, and we do a pretty good job of encouraging our customers to go to them,” said McNeill. “So it works well.”
As the club continues to make its transition from an adult-focused gym to a more family-focused one, McNeill wanted to clarify one thing. “The reason why we left Gold’s Gym is not because of the brand,” he said. “It’s a great brand … In order for us to achieve our maximum profitability, we needed to differentiate by being multi-generational.”
After all is said and done, McNeill is confident he made a smart decision for his business. “When people join things as a family, they tend to stay longer,” he said.
By Rachel Zabonick
Stay ahead in the fitness industry with exclusive updates!
Subscribe Now
Rachel Zabonick-Chonko is the editor-in-chief of Club Solutions Magazine. She can be reached at rachel@peakemedia.com.
This article fails to mention their recent arson attempt and/or fines from NJ consumer Affairs for violating consumer protection laws. Or the fact that their expansion has been delayed since March 2014. This gym is not what it presents itself to be.