1280: COVID-19 - The Death of the Gym Industry?

Apr 27, 2020

Scott Howell, owner of Red Dot Fitness, shares innovative strategies he implemented to retain clients during the pandemic, emphasizing the importance of adaptability. Jason Khalipa, a CrossFit pioneer, discusses the financial challenges gym owners faced and how he engaged with members to maintain loyalty. They explore future business models in the gym industry, including potential shifts towards online services and the impact of health regulations. Both express cautious optimism about the gym industry's ability to recover and reinvent itself.

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ANECDOTE

Bay Clubs' Staff Retention Strategy

Bay Clubs chose not to lay off employees during the shutdown.
They offered members different dues options to support staff.

ADVICE

Bay Clubs' Reopening Strategy

Bay Clubs plans to utilize outdoor spaces and large indoor areas.
They will implement booking systems and fitness pods to maintain social distancing.

ANECDOTE

Red Dot's Initial Response

Red Dot Fitness prioritized staff organization and transparency.
They communicated proactively with clients about safety measures and alternative training options.

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In this episode, Sal, Adam & Justin discuss the future of the gym industry in the wake of the COVID-19 pandemic. Will it survive? This episode features the perspective of leaders in the gym industry, from the owner of a local personal training studio to the founder of 24 Hour Fitness.

A conversation with Breann Mitchell, Director of The Bay Club Company.
- How are Bay Clubs handling the shut down right now both with staff and members? (2:30)
- The interesting strategy they have implemented and how it is working out. (3:45)
- What are they doing to bring value to members so they can keep paying dues? (4:28)
- Their plans for re-opening. (5:20)
- The outlook on the future of Bay Clubs. (7:14)
A conversation with Scott Howell, CEO of Red Dot Fitness.
- How is Red Dot handling things at this moment? (7:45)
- Ways they’re bringing value and service to their clients to keep some revenue coming in. (9:53)
- How many members did they lose? (10:50)
- Their plans on re-opening when they get the green light. (12:08)
- Optimistic or pessimistic for the future? (13:25)
A conversation with Jason Khalipa, CrossFit pioneer, and gym owner.
- How he is managing his business at the moment. (14:40)
- How he is working with his members. (15:58)
- Is he worried about the future of his business? (17:40)
- How will he move forward when things reopen? (18:38)
- Will he have to change his business model based on new restrictions? (19:20)
- Will the average CrossFit box die? (20:17)
- What does the future look like for the CrossFit box owner? (21:45)
- Switching to digital the way of the future? (23:13)
A conversation with Brendon Ayanbadejo, Super Bowl Winner, and Orangetheory Fitness owner.
- How have his businesses been impacted? (24:23)
- Their plans for re-opening. (25:35)
- How will this affect their membership prices? (26:36)
- Is he fearful about the future? (27:06)
- How COVID-19 is affecting the new small business franchisee? (27:55)
A conversation with Mark Mastrov, fitness empire builder of 24-Hour Fitness and current President/CEO at Fitness Holdings Inc.
- How have his businesses handled the shut-down? (29:00)
- Have they gone digital to try and bring in revenue? (30:03)
- How they plan on operating when allowed to re-open. (31:00)
- Creating a strong community and a healthy environment. (33:15)
- How will they profit with fewer people in their facilities? (34:37)
- Mark’s candid take on the impact of COVID-19. (36:20)
- What is the future of the entire gym industry? (37:18)
A Mind Pump candid recap of the conversations had. (39:35)