How the Return to Gyms is Impacting Various Franchise Industries

New data shows that gyms reopening and welcoming members post-pandemic has brought a rise in business for the fitness centers and the businesses near them. 

Analytics firm Creditntell’s recent report shows that gym revenue and traffic have been on the rise this year, with a 24% increase in sales per square foot from 2021 and a 13% increase in monthly visits versus 2019. But in addition to the momentum the fitness category is seeing, heightened popularity in gyms has created a ripple effect for other businesses.

Success at gyms rubs off onto surrounding companies and concepts, data shows. Retailers that are located in the same shopping center as a fitness club see 2.5% more traffic than locations of that same brand in areas without a neighboring gym.

These figures highlight why site selection is such an important part of franchising. Brands know that location matters because busy centers with generous foot traffic experience shared success between businesses. Many consumers visit these specific plazas because of the convenience factor and will stop at multiple places. 

“It’s sort of natural to come out of the gym, and if there are things around you that you can take care of — you do that before you get back in your car and go on to the next thing,” Barrie Scardina with Cushman & Wakefield told Wall Street Journal. 

This trickle-down effect can benefit franchises in every retail sector, no matter the industry. The demand is already there for concepts in the same center to capitalize on. 

With busy to-do lists, gym goers will be looking for places to do dry cleaning, grab a bite to eat, get a coffee, get their hair done, etc., after they are done with their workout. If they exit the building and see a place where they can handle that errand, chances are that establishment will get their business, and they may become a repeat customer since they frequent the center already.

When the time comes for a new franchise owner in the retail space to select the real estate for the concept, looking for a place near a gym may help increase visibility and traffic. A Finder study shows that 46.9 million people go to the gym at least twice a week — which offers franchises and businesses nearby the chance to make them biweekly customers of their establishment too.