2023-9-25
1．Planet Fitness CEO Chris Rondeau Replaced by Craig Benson
In a sudden shake-up, the Board of Directors at Planet Fitness has ousted CEO Chris Rondeau, replacing him with Craig Benson, a seasoned board member and business heavyweight. The decision is effective immediately, leaving many in the industry speculating about the reasons behind this abrupt change in leadership.
Leadership Transition for Planet Fitness
Stephen Spinelli, the Chair of the Board, explained, "As we enter the next chapter of Planet Fitness's journey, the board felt now was the right time to transition leadership." While Rondeau will remain involved with the company in an advisory role to ensure a smooth transition, an executive search firm has been enlisted to find a new permanent CEO.
Severance Package for Rondeau
As part of his severance package, Rondeau will receive an approximately $800,000 bonus and continue to draw his $950,000 basic salary for two years, subject to a non-compete agreement and confidentiality clauses.
Market Reaction and Speculation
Rondeau's departure has sent shockwaves through the market, with Planet Fitness shares plunging by 16%. Investors had considered Rondeau a strong operator. However, the board has issued a statement to reassure stakeholders, stating that the management change is not a result of unexpected financial issues, and there are no immediate changes to the current business strategy.
Divergent Paths and Strategies
The decision to replace Rondeau with Craig Benson hints at potential disagreements within the company. Rondeau had emphasized a continued focus on the U.S. market, citing substantial growth potential, while the board appears to favor international expansion.
Benson's Background and Experience
Craig Benson brings a wealth of experience to the role. Apart from serving on Planet Fitness's board since 2017, he has been the CEO of Soft Draw Investments and a Dunkin' Donuts franchisee with 147 stores. Notably, he previously served as the Governor of New Hampshire and co-founded Cabletron Systems, a networking solutions provider.
Forward-Looking Statement
The company's forward-looking statement accompanying Rondeau's departure highlights the uncertainty and risks associated with this change, focusing on the transition to a new interim CEO and the selection of a permanent CEO.
2．Etenon Fitness Demonstrates Strong Social Responsibility with Donation to Jaén Red Cross
Etenon Fitness has underscored its commitment to social responsibility by making a significant donation of women's sportswear to the Jaén Red Cross. This philanthropic initiative aims to provide support to young girls who are part of the program for the Reception and Integration of Persons Seeking International Protection, designed to assist individuals facing genuine vulnerability and adversity.
The generous donation from Etenon Fitness will benefit refugee girls from the war-torn region of Ukraine and immigrant children hailing from diverse African nations. Etenon Fitness has thoughtfully curated a collection of high-quality sportswear from the renowned Bia Brazil brand. This collection includes over 40 long and short leggings, long-sleeved T-shirts, tank tops, and pants. The carefully chosen garments not only address the practical clothing needs of these young refugees but also promote a healthy lifestyle by encouraging participation in sports activities.
The official handover of this donation occurred at Etenon Fitness headquarters, where Rafael Rodríguez, the company's Manager, met with representatives from the humanitarian organization. Eva Ocaña, Director of Marketing and Alliances with companies, and Nieves García, Provincial Marketing Technician and Alliances with companies, were present to formalize the donation. This collaborative effort exemplifies Etenon Fitness' unwavering dedication to the well-being of local communities and its commitment to making a positive impact on those in need.
Rafael Rodríguez, Manager of Etenon, expressed, "At Etenon Fitness, we believe that well-being is a fundamental right for everyone, regardless of their background or circumstances. We are thrilled to partner with the Jaén Red Cross in this noble cause and contribute positively to the lives of these young individuals through this donation."
The Jaén Red Cross, a venerable organization known for its humanitarian services, will be responsible for distributing the sportswear to refugee girls who face unique challenges as they adapt to new environments. This donation not only supplies essential clothing but also encourages physical activity and emotional well-being among the beneficiaries.
Etenon Fitness' dedication to social responsibility extends beyond this act of goodwill. The company is committed to exploring additional avenues for making positive contributions to diverse communities and promoting an active and healthy lifestyle for all.
3．Fitness Facilities in Spain Employ Strategies to Adapt to Economic Challenges
In response to economic challenges stemming from the pandemic and rising inflation, gyms and sports facilities in Spain have been implementing a range of strategies to maintain financial stability. According to a study conducted by MAS consultancy and sponsored by EGYM, a significant portion of facilities has focused on both cost-cutting measures and revenue-enhancing initiatives.
Cost-Cutting Measures
The study, which involved 571 sports facilities across Spain and received the endorsement of the University of Alcalá de Henares, revealed that 40% of these establishments successfully reduced costs, achieving a 7% reduction on average. Among those that managed to cut costs, 69.2% did so by reducing personnel expenses, while 19.9% targeted investments, 7.5% focused on supplies, and 3.4% trimmed marketing expenditures.
Revenue-Boosting Initiatives
On the revenue front, a striking 86% of the surveyed facilities reported implementing measures to increase their income. The primary focus was on raising membership fees, with 23.4% of facilities opting for this strategy. Other revenue-boosting measures included expanding services (18.5%), modifying the customer mix (17.4%), tapping into atypical income sources (9.5%), promoting personal training (8.3%), and, to a lesser extent, increasing marketing efforts (3.8%).
Positive Impact on Average Ticket
These combined efforts resulted in 96% of the facilities reporting an increase in their average ticket price, with an overall rise of 9.9%.
Cost Breakdown
The study also provided insights into the cost structure of sports facilities. Personnel costs accounted for the largest portion, representing 41% of total costs, followed by supply costs (14%), and marketing expenses (3%). Administrative concessions recorded the highest incidence of personnel costs at 50.8%, while boutique centers had the lowest at 30.6%.
Outsourced Services and Central Costs
Notably, 95% of facilities outsourced certain services, such as cleaning and maintenance, which made up an average of 7.5% of their total costs. Additionally, 85% of operators passed on the proportional cost of central services to their facilities, amounting to 6.2% of total costs.
Property Costs and Energy Optimization
Property costs, including rent or purchase expenses, constituted an average of 14.3% of annual costs. The majority of facilities (68.7%) operated with rental properties, while 17.7% owned their properties, and 13.6% paid a lease.
Furthermore, 75% of the surveyed facilities reported making energy-efficient improvements in the past two years. Most of these improvements focused on insulation, water systems, and filtration systems (78%), with 19.5% implementing photovoltaic panels to optimize energy consumption.
This study sheds light on the resilience of the fitness sector in Spain and showcases the adaptability of sports facilities in the face of economic challenges. It highlights the industry's efforts to balance costs and revenues, ensuring its continued viability.
4．RSG Group Unveils Impressive John Reed Health Club in Berlin
RSG Group, a renowned leader in the fitness and wellness industry, has proudly opened the doors to its latest flagship health club, John Reed Berlin Bötzow, in the vibrant heart of Berlin. This high-end establishment, situated in the historic Bötzow Brewery building in the Prenzlauer Berg district, promises a fitness experience like no other.
Spanning an impressive 3,136 square meters, John Reed Berlin Bötzow offers a comprehensive fitness haven for members. The club boasts dedicated cardio zones, a well-equipped free weight area, an innovative "equipment park," and a diverse range of fitness programs. Fitness enthusiasts can choose from reformer Pilates, exhilarating treadmill classes, and engaging functional and group workouts. For those seeking personalized guidance, the club offers body check-ups, nutrition coaching, and access to experienced personal trainers.
The wellness facilities at John Reed Berlin Bötzow are equally impressive, with separate saunas for men and women, a lavish 20-meter pool, and inviting spa pools. Some of these amenities are nestled within the brewery's meticulously repurposed cooling pools, adding a unique touch to the experience. The club's historic charm is accentuated by its 7-meter-high domed ceilings, preserving the architectural heritage of the Bötzow Brewery.
A key highlight of the club's design is the meticulous attention to preserving and showcasing the site's historical features. Bespoke lighting solutions have been thoughtfully integrated to illuminate the brewery's vaults, enhancing the ambiance while honoring its legacy.
In line with the John Reed philosophy, which seamlessly blends fitness and culture, the Berlin club will host regularly changing art exhibitions, providing members with a dynamic and inspiring environment.
John Reed Berlin Bötzow is part of a larger redevelopment project at the former Bötzow brewery site, spanning 24,000 square meters. The transformation into a vibrant meeting place for Berlin is being masterminded by David Chipperfield Architects Berlin and will be completed in phases, with the final areas expected to open by the end of 2024 or the beginning of 2025.
This new flagship John Reed health club follows the successful launch of RDG's expansive Gold's Gym flagship in the city in 2021. John Reed is just one of the 15 fitness, wellness, art, and lifestyle brands operated by the esteemed RSG Group, founded in 1997 by the late Rainer Schaller. Today, RSG Group employs over 10,000 professionals across more than 30 countries, continually redefining the fitness and wellness landscape.
5．New Fitness Brand Lumin Fitness Debuts Innovative Studio in Texas
After an extensive four-year period of research and development, Lumin Fitness, a groundbreaking exercise concept, has officially unveiled its inaugural studio. Situated in Las Colinas, Texas, a suburb of Dallas, this studio is a testament to the vision of founder Brandon Bean, who embarked on this venture in 2019.
The studio offers a distinctive fitness experience, adorned with wall-to-wall LED screens, and presents 40-minute classes that seamlessly integrate cutting-edge technology. Lumin Fitness harnesses the power of artificial intelligence, digital workout displays, and motion tracking to provide members with an immersive and dynamic training session.
Chief Development Officer Craig Sherwood emphasized the role of AI in the Lumin Fitness approach, stating, "Our members have an AI-powered coach who's monitoring your progress, technique changes, and making sure you're doing exercises right."
Brandon Bean, the founder of Lumin Fitness and former chairman of Gold Gym, recognized the potential of combining technology with brick-and-mortar fitness, particularly within the boutique fitness model. This innovative approach aims to elevate the boutique fitness experience by fusing it with the latest advancements in technology.
Lumin Fitness has ambitious plans for expansion and is actively seeking franchise partners. Sherwood expressed their goal, stating, "We're looking to franchise across the country... We're open to growing across the U.S. and around the world." The company is actively seeking franchisees who share their vision and passion for fitness and are willing to actively participate in the growth and development of the brand.
Each Lumin Fitness studio will offer scheduled classes and introduce a unique feature called "Lumin Solo," which allows members to exercise independently, choosing workouts that suit their preferences. This interactive and immersive approach incorporates gamification elements, keeping participants engaged and motivated.
Lumin Fitness studios will vary in size, ranging from 1,700 to 3,000 square feet, depending on the number of workout stations incorporated. The initial investment required to open a Lumin Fitness franchise ranges from $505,000 to $997,000.
This launch marks the beginning of an exciting journey for Lumin Fitness as it strives to reshape the fitness industry through innovation and technology.
6．Aqua Gym Equipment Market Set to Reach USD 781 Million with a Healthy 4% CAGR by 2031
The global aqua gym equipment market is on a trajectory to thrive, with a projected Compound Annual Growth Rate (CAGR) of 4% from 2021 to 2031, according to a report by Transparency Market Research (TMR). By the year 2031, the market is poised to attain a valuation of USD 781.2 million, with an estimated value of USD 578 million by the end of 2023.
Several factors are driving the growth of the aqua gym equipment market. Escalating global obesity rates and the prevalence of medical conditions such as arthritis and joint ailments among aging populations are among the primary drivers. The increasing consciousness regarding physical fitness and overall well-being has spurred demand for fitness activities, including aquatic exercises.
Aqua gym equipment presents a unique proposition, offering a low-impact, joint-friendly workout option. This characteristic makes it particularly attractive to individuals of all fitness levels, including those seeking rehabilitation or stress relief.
The heightened awareness of the significance of physical fitness is a significant catalyst for market growth. Additionally, the growing recognition of the benefits associated with water sports and aerobics further fuels the expansion of the global aqua gym equipment market.
Furthermore, aqua gym equipment plays a vital role in rehabilitation and physical therapy programs. Its buoyant properties reduce the impact on injured or recovering body parts, rendering it an ideal choice for individuals recuperating from surgeries or injuries.
The buoyancy of water provides a low-impact workout, making aqua gym equipment suitable for individuals with joint issues, arthritis, or other conditions that limit their ability to engage in high-impact exercises. Notably, the increasing adoption of aquatic treadmill exercises by osteoarthritis patients is a significant factor driving market demand.
Key Highlights:
- In 2022, the aqua gym equipment market boasted a valuation of USD 555.9 million.
- Machines and equipment are expected to witness robust demand and accumulate a substantial revenue share during the forecast period.
- The men's segment is projected to dominate the market, based on consumer group.
- The commercial segment is anticipated to yield substantial revenue during the forecast period due to heightened demand in public pools, fitness centers, and aquatic therapy centers.
Key Players in the Aqua Gym Equipment Market:
- Acquapole SAS
- Aqua Creek
- Aqua Gear Inc.
- Be Aqua Pte Ltd
- BECO Beermann GmbH & Co. KG
- Hydro-FIT
- HydroWorx International, Inc.
- PlayCore, Inc.
- Speedo International
- Texas Recreation Corporation
The aqua gym equipment market is set to make a splash in the fitness and wellness industry, offering a diverse range of options for individuals seeking effective and joint-friendly workouts. The continued growth of this market underscores the importance of aquatic exercise in promoting physical well-being.
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Author:
Roger Yao （cs01@fitqs.com)
The founder of FITQS/FQC
The columnist of magzine <China Fitness Equipment>
20 years in fitness/sporting equipment OEM/ODM technical, quality control and sourcing management.
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