Say location A is here on the corner and it's doing well, and we're trying to decide if we should open location B three miles away. Our ultimate goal is to figure out how to get deeper into those other buckets of consumers, but if you're talking about opening a new location, we want to make sure we're lined up with our biggest customer group. What you have to try to determine is, how many customers do you need to be successful in any given market or location? What's that person's age, income and gender? The core of our brand is to make it accessible to all ages and fitness levels, but the largest percentage of our customers are 25- to 49-year-old females with midlevel income. Even when we were smaller, we spent a lot of time analyzing the demographics and psychographics around where we wanted to go. What makes a good location for an Orangetheory studio? Same-store sales have actually seen almost double- digit growth this year. ![]() If it's way off track, within 30 days we come back with a follow-up and make sure things get back on track.Īll that's to say, we've never had to close a single store. If the studio is 100 percent on track, we'll wait a quarter and do it again. And if there are areas for improvement, here's the action plan to get on track for those areas. We know based on where your studio is geographically and price point and all that, what's good, what's great and what's not so great performance. Likewise, we've got a very disciplined system once the studio opens there are milestones and goals to hit each week. We've got a very detailed support plan for how to run that business, and we check in from the headquarters once a week on the metrics. That business runs for a minimum of 12 weeks while the location is under construction. Once the studio opens, it's already busy and people are working out and growing the business by referral. Before the actual workout studio opens, we open up a sort of satellite business with the goal of educating the community and getting them signed up for memberships. What kind of guard rails have you put in place to make sure that growth doesn't become unwieldy?įirst, we're very unique in that we run a dual business model. Still, you're about to double the number of studio locations you had from just last year. That's when we crossed paths with Ellen Latham, who had a large studio with a spinning room, a Pilates room, and an "ultimate workout room," which was the first version of what Orangetheory does today. My partner and I were looking for a world-changing fitness product that had already been incubated - something we thought we could grow and add value to. Early in my career I worked at a health club, and later at European Wax Center and Massage Envy. I do a lot of snowboarding, surfing and mountain biking. I'm a pretty avid extreme-sports type person. How did you become interested in fitness as a business? Related: How to Get Customers Talking About Your Fitness Business It's about doing franchise expansion right. But Long says that the company's explosive growth - including a solid 137 percent increase in revenue over the past three years - isn't just about good timing. Classes aim to help members achieve an "afterburn" effect - a metabolic sweet spot that sheds calories long after the gym session ends. Founded in 2010 and headquartered in Boca Raton, Fla., Orangetheory's 823 franchise studios have one-hour, trainer-led group classes featuring wrist- or chest-worn heart-rate monitors. So how does one of the hottest brands thrive in one of the hottest markets? Ask Dave Long, CEO of the fitness company and workout craze Orangetheory, which offers some actual fun alongside its members' healthy pursuit. ![]() ![]() market is worth $28 billion, and franchise brands are the hottest, fastest-growing part of it. ![]() There's a lot of money in the fitness business.
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