This is Matt Reustle, and today we’re breaking down Europe’s leading low-cost gym operator, Basic-Fit. Netherlands based Basic-Fit is a story of rapid expansion. Today, they operate over a 1000 clubs across 5 countries, and have 2 million combined members in their system.
To break down the business, I’m joined by Jonathan Abenaim from Arlen House Capital, who is an investor in Basic-Fit. We cover a history of fitness clubs dating back to the late 70’s and early 80’s, how low-cost gym models have emerged as winners and created a large addressable market, and we talk about how Basic-Fit is putting its own spin on a successful playbook from the US. Please enjoy this breakdown of Basic-Fit.
For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.
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Show Notes
[00:02:47] - [First question] - What it’s like to walk into a Basic-Fit gym
[00:03:50] - Their footprint today in terms of geography, members and locations
[00:04:41] - The history of gyms in the US and differences between them and European ones
[00:08:33] - Why US gym models lack influence and penetration in Europe
[00:10:58] - The key insight that led to founding Basic-Fit
[00:13:40] - Economics of building and operating a gym in general and for Basic-Fit
[00:16:47] - Typical churn for more established locations and their member demographic
[00:20:33] - When Basic-Fit breaks even on a membership and how they battle churn
[00:23:28] - Their cancellation policy and why they don’t leave for typical reasons
[00:25:10] - Basic-Fit’s fortressing strategy and clustering philosophy
[00:28:51] - Whether or not there’s data to support members using multiple gyms
[00:33:11] - The competitive landscape and whether other gyms adopt Basic-Fit’s strategy
[00:35:21] - What drives country localizations for a particular gym chain
[00:38:22] - Basic-Fit’s digital offering and at-home disruption from US brands
[00:42:31] - How they navigated the pandemic and if there’s any lasting changes
[00:44:31] - The biggest threats to Basic-Fit over the next five years
[00:46:23] - Major takeaways from studying Basic-Fit’s story
