Fitness Industry Roundup: U.S. Scores D-minus for Kids’ Fitness

In this week’s roundup, the IHRSA 2018 Profiles of Success provides a comprehensive look into the health of the industry, Megatlon launches a new club concept in Argentina, American Family Fitness celebrates, and more fitness industry-related companies see growth.

U.S. Scores D-minus on Physical Activity for Kids

The National Physical Activity Plan Alliance (NPAPA) released the 2018 United States Report Card on Physical Activity for Children and Youth early in October, which gave the U.S. a D-minus for the amount of physical activity kids perform. But the report indicates there have been efforts to mitigate the problem. Schools are encouraging kids to exercise more by requiring P.E. courses, access has expanded to playgrounds and other public spaces, and more than 50% of kids have participated in a sport. Though those are good signs, the report highlights a gap between genders, demographics, and age groups. For example, about 35% of high school boys participate in at least 60 minutes of physical activity on a daily basis, but only 18% of high school girls. “Clearly, there is significant work to do in removing existing barriers, but we are encouraged by the progress we’re seeing on multiple fronts,” said Peter T. Katzmarzyk, Ph.D., chair of the alliance’s Report Card Research Advisory Committee.

Learn more about the report card and find out how your club can help kids get active in school.

American Family Fitness Turns 30

On September 29, American Family Fitness clubs across central Virginia celebrated 30 years of service. The nine clubs, which serve Richmond, Williamsburg, and Fredericksburg, offered food, drinks, raffle prizes, and music to members and the community as a way to say, “Thank you.” “The members and staff at each club have made American Family Fitness a true part of the communities they’ve served for the last 30 years, and for that I couldn’t be more grateful and blessed,” owner Brian Evans said. The company has about 85,000 members, employs 1,200, and, according to Evans, is incorporating new technology to enhance the membership experience. “Our app and newly developing fusion training program are perfect examples of using technology to benefit our members,” Evans said.

Read about American Family Fitness 30th anniversary.

IHRSA 2018 Profiles of Success Released

More than 12,000 club sites reported overall increases of 5.3% in revenue and 2.8% in membership, according to the IHRSA 2018 Profiles of Success. What’s more, clubs part of a chain saw greater revenue growth (+7%) than independent clubs (+2.8%). On the other hand, independent facilities posted a retention rate of 72.4%, while clubs part of a chain indicated a retention rate of 66.7%. Profiles, which serves as a benchmark of the success of the fitness industry, contains data collected from the annual Industry Data Survey (IDS). About 115 club companies representing 12,289 locations participated in the survey. The report also covers member demographics and participation; club growth by region; operating benchmarks; membership growth and traffic; prices; membership agreements; facilities; payroll and staffing; and other relevant topics. IHRSA members can buy the report for $249.95 ($499.95 for non-members).

Read more about this year’s Profiles of Success.

Megatlon’s FITER Debuts in Argentina

Megatlon opened a new low-cost club concept in Buenos Aires, Argentina, earlier this year. FITER features smaller facilities averaging 10,800 square feet, lower monthly membership rates (about half of the cost of Megatlon), 70 to 80 pieces of fitness equipment, and a studio for group exercise classes. Four more locations are slated to open. “To be able to reach more consumers with such low prices, we’ll have to keep tight control of our operating costs,” Raúl Wainraich, Megatlon’s commercial director, told Club Business International. Megathlon is one of Argentina’s largest fitness chains, with 33 multipurpose facilities throughout the country.

Find more Latin American club news in CBI.

More Music Licensing Discounts for IHRSA Members

IHRSA members now have more music licensing options thanks to a new agreement with the American Society of Composers, Authors and Publishers (ASCAP). IHRSA member clubs can now use a 10% discount on the first year of purchasing the ASCAP Fitness License, and then a 5% discount in following years. Obtaining a license allows clubs to use over 11.5 million songs written by ASCAP members like Kelly Clarkson, U2, Kendrick Lamar, and Katy Perry. In return, ASCAP helps generate royalties back to musicians and producers. IHRSA members can also access discounts from Broadcast Music Inc. (BMI), which holds the rights to millions of other songs, from chart toppers to perennial favorites. With these two options, club owners can “shop smarter, save money.”

Learn more about IHRSA Group Purchasing and music licensing.

Xponetial Fitness Continues to Grow

Xponential Fitness has acquired Pure Barre, becoming the largest provider of boutique fitness in the world, according to a recent press release. The move was led by Xponential’s co-founder and CEO Anthony Geisler, who was recently dubbed a “trendsetter” by Club Business International. Pure Barre joins a family of brands including Club Pilates, CycleBar, StretchLab, Row House, AKT, and Yoga Six. Xponential Fitness works to grow brands by seeking out opportunities in new locations and creating franchises. By backing already successful concepts, Xponential Fitness is on track to hit $308.6 million in total revenue, according to CBI. “Nobody else in the fitness industry is doing what we do, and I’m excited to be at the forefront,” Geisler said.

Read more about the acquisition.