December 2022 Club of the Month, presented by ABC Fitness Solutions:
Kilo Club, est. 2019
Located in Las Vegas, Nevada, Kilo Club is a one of a kind, professionally equipped private club of approximately 1,000 members. At over 30,000 square feet, the gym has plenty of space to provide members a luxury fitness experience.
Below, Jea Jung, the owner of Kilo Club, shares more on the club’s beginnings, what sets it apart from other gyms and how other owners can experience similar success.
How did Kilo Club come about?
In late 2019, I was recruited by a master developer in an affluent section of Las Vegas to re-brand and operate a former David Barton gym. It was already a gorgeous property and beautiful buildout, but it required a new design and a contrarian approach. It was possibly the worst timing to experiment in the gym business, but it’s been a massive success, and I only see growth ahead. I’m expanding into New York City in 2023 and Miami in 2024.
What is the internal philosophy or mission statement of Kilo Club?
Our mission is to create luxury clubs with a capped membership.
What makes Kilo Club different from other clubs?
We are a premium club that blends three unique concepts: A capped membership, a lifting-centric offering and blockchain assets. These are all contrarian ideas but together they appeal to the next generation of affluent and tech-savvy members.
How is Kilo Club more than just a gym but also a community and a place of belonging for members?
With a capped membership of 1,000 (hence the kilo branding), the limited supply allows the market to bear the price point. What most operators are missing is the top 10% of the demand curve, and it’s not comprised of the same demographic as other industries. With almost all products and services, the price point aligns with demographics. But in fitness, you’d be surprised how many young and middle-income people are seeking the highest price for best in class.
When it’s as important as your daily workout, it’s not about the money. My members are from all backgrounds but have one thing in common: They are willing to pay for a high-quality experience. We have underground parking in a highly secure building, valet service, 24/7 access and our club is open only to ages 21 and over. I believe today’s club members value their co-members more than any other amenity. Kilo Club is 80% lifting focused, and I take pride in having a broad variety of great equipment that appeals to high-level athletes. Four-time Mr. Olympia Champion Jay Cutler and David Goggins are among my members. This club is not for everyone, but if it’s for you, there is nothing else that compares.
How are you engaging with your members when they are not working out physically at Kilo Gym?
The members should have a voice. While it makes sense for small businesses to be run by a benevolent dictator, it’s not a job I want or particularly enjoy. I have an objective with blockchain technology. The missing link to creating a true “club” is to distribute its value among those that contribute to it. I’ll be airdropping 1000 NFTs to each founding member. They are free to mint, and it serves three purposes as an access token, a governance mechanism and fractional ownership. It will take some time to develop but this is the most important component of the Kilo Club concept.
What’s a trend you’re seeing in the fitness industry that other operators should keep on their radar?
The high end of the market is being underserved and there is a strong demand for less crowded clubs at a higher price point. I also believe most multi-amenity clubs are underestimating and under-allocating for the demand for serious lifting that is a trend that will only get stronger.
If you could give one piece of advice to other gym operators, what would it be?
Play chess, not checkers. This industry moves quickly, and if you’re not playing one step ahead, you’re already falling behind. Doing the same thing as everyone else is not only bad business, but you’re missing out on the best part of being in this industry: The opportunity to create, to be artistic and to express your unique self through fitness culture.
Created in partnership with ABC Fitness Solutions. Visit abcfitness.com for more information on how they can help your fitness business.
