Fitness Centers

The US fitness centers industry includes about 22,000 companies and nonprofits in the US that operate about 26,000 fitness and recreation centers with combined annual revenue of $15 billion. Major companies include 24 Hour Fitness Worldwide, Gold's Gym, World Gym, Curves International, and Town Sports International, operator of the Sports Club brand. About 2,600 centers are operated by YMCAs and another 2,500 by community centers. The industry is fragmented: the 50 largest companies account for about 30 percent of revenue, and only a few dozen companies own more than 10 centers.

COMPETITIVE LANDSCAPE

Demand is partly linked to income levels and partly to market demographics. The profitability of individual companies depends on good marketing. Large companies have economies of scale in advertising and buying equipment. Small companies can compete effectively if they have favorable locations. The industry is labor-intensive: average annual revenue per worker is $30,000.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major services include facilities for aerobic exercise and weightlifting. Running, swimming, racquet sports, yoga, karate, basketball, and swimming may also be offered. Small studios may cover just a few thousand square feet while multi-activity operations can cover 100,000 square feet. The operations of all fitness centers are similar: the operator makes space and equipment available for customers to engage in various types of fitness activities, provides staff to help customers properly use the equipment, maintains the facilities, and provides various other services such as professional trainers and class ...