When Julian Barnes, the co-founder and CEO of the BFS Network, joined editor Taylor Gabhart to discuss the 2024 BFS State of the Industry Report, he brought a powerful message: profitability in the boutique fitness industry is both achievable and increasingly common — if operators stick to proven business practices.
BFS, which stands for beauty, fitness and self care, serves as a growth accelerator and intelligence hub for fitness, wellness and beauty brands. The team has been publishing industry reports since 2018, evolving from simple audience snapshots to detailed economic insights during the pandemic. But the 2024 report stands out as their most comprehensive to date.
“This year, we did three things differently,” said Barnes. “We asked operators about profitability, market type and business modality. That allowed us to segment every data point — from compensation to marketing spend — by these critical factors.”
The result? A definitive blueprint for what profitable studios look like. Among the standout findings: the percentage of studios reporting a 20% profit margin nearly doubled from 9.2% in 2022 to 17.4% in 2024.
What sets these successful studios apart? It’s not a trendy hack or magic formula. “They follow simple but powerful business fundamentals: Find, enroll and retain,” explained Barnes.
Profitable studios consistently generate 50 new leads per month — most commonly through referrals. That’s good news for smaller, independently owned studios, which made up the bulk of BFS’s respondents and often lack large ad budgets. Barnes emphasized that high profitability doesn’t require a massive marketing spend — just rigorous execution of lead generation and conversion practices.
Studios converting at least 30% of their leads into visits, and then again into second purchases, are on the right track. They also maintain between 100-249 recurring payments per month and keep churn below 5%, resulting in long-term member value.
Barnes drove home the accessibility of growth. “Want to double profitability? If your studio brings in $500K a year and nets $50K in profit, you just need to add $4,167 in monthly recurring revenue — that’s two net new members per month if your membership is $175.”
Achieving that doesn’t require paid ads — just community outreach, consistency and a hospitality-driven approach. “You have to show up every day with the Disney mindset,” said Barnes. “That’s the hard part — not the formula, but the consistency.”
You can access the full 2024 BFS State of the Industry Report here.
