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Fitness Studios Turn to Outdoor Classes to Stay Afloat
CNBC reports that while brick-and-mortar gyms are hit hard by the pandemic, many studios are offering classes outdoors to make up for revenue lost.
In the spring, COVID-19 forced the mass shutdown of gyms and exercise facilities across the country, sparking a severe plunge in fitness industry profits in the first half of 2020. Now, as the coronavirus continues to threaten the future of brick-and-mortar establishments in all segments, fitness businesses are turning to outdoor classes to revive revenue streams.
On Saturday, CNBC offered a look at how fitness brands are taking advantage of warm weather to maintain their customer bases while indoor classes remain prohibited in many states.
Drawing on data from International Health, Racquet & Sportsclub Association and Ibis World, CNBC notes that there were approximately 62.4 million members of Health Clubs in the U.S. in 2019, with the industry recently valued at $34 billion. Classpass reported that 95% of its revenue receded in April and that they were forced to lay off or furlough 53% of its staff as a result. Fitness studios Flywheel and Solidcore also laid off nearly 100% of their staff, and Gold’s Gyms and 24 Hour Fitness were two major franchises that filed for bankruptcy.
Jacob Gise, who in November opened a location of Australian-based franchise Body Fit Training in California, told CNBC, “I climbed this huge mountain, traveling to different countries and doing all this stuff to get it here,” Gise said. “Right as it started to be profitable and a lot of franchisees were interested, everything is shut down.”
While many struggling gyms originally pivoted to less-profitable online classes, others are now taking advantage of the summer weather and providing outdoor classes. Many exercise-enthusiasts have responded positively to the pivot, and new business partnerships have formed specifically to provide such a service.
For example, one Zumba instructor, Lauren Owen in the Metro-Detroit area, partnered with a local nutrition store, Shores Nutrition, to bring protein shake deals to customers who joined her outdoor class. Owen hosts her classes in the Shores Nutrition parking lot and has seen the benefit the partnership has brought to her students.
“There’s not as much camaraderie over Zoom as there is in person,” Owen told CNBC. “When I saw ... I could teach a class outside, I jumped on it, because I was so excited to teach in person again, because I know it’s just so much better.”
Dana Auriemma, owner of Firehouse Fitness Studio in Philadelphia, told CNBC that her customers have responded well to hosting classes on their rooftop: “For clients in a studio, missing that studio get-together is a huge loss of a social aspect of their life and all of the emotional and mental benefits for exercise. The fact that outdoor gives us an outlet to bring that back to people is fantastic for their health.”
Gise was one of many fitness center owners who also pivoted to bring his classes outside, and said the ability to serve his clients and provide an atmosphere for them to still reach their personal goals has been a game changer — not just financially but also from a morale perspective.
“I’ve barely slept over the past four months, to be honest, just because I’m worried about paying my staff, I’m worried about trying to get this rent money and also just trying to take care of everybody,” Gise told CNBC. “There’s a lot of challenges, but at the end of the day, it’s totally worth it because we’re helping people, and their energy is the only thing getting me through.”
