Industry Trends

4 Takeaways from Club Industry's Top 100 Clubs List

top_100_club_piece.jpgClub Industry released their annual list of the top 100 Health Clubs. While many club’s positions on the list are similar to last year’s, deeper analysis reveals some interesting industry trends. These are the important 4 takeaways you need to know from Club Industry’s Top 100 Clubs List.

Note: The list is based entirely on the revenue a club earned in 2015. Some revenue projections for private clubs are estimates. A club’s position in the list is not a reflection of their customer service, quality or any other non-revenue metric.

1. Location, Location, Location

Although the most well-known clubs are massive franchises with many locations, you don’t need to be a constantly-expanding franchise to be profitable.

  • 27 of the top 100 clubs only have one location 
  • #13 on the list, Chelsea Piers, only has two locations
  • 49 clubs on the list have five or less locations
  • Only 39 clubs on the list had more than ten locations

These numbers mean that while being an international superstar opening 15 new locations every year is awesome, building a strong community at a single club is a viable path to profitability as well.

2. The Billionaire Club

The billionaire club, which consisted of LA Fitness, 24 Hour Fitness and Life Time Fitness in 2015, welcomed two new members this year: Equinox and ClubCorp. Equinox actually fell one spot in the overall rankings (#4 to #5), but increased their revenue by an estimated $188 million. ClubCorp lept to into the #4 ranking by raising revenue by approximately $256 million, bringing the club to a total of $1.1 billion.

3. $13 goes a long way

While high-price, premium clubs like Equinox are performing well, low-price, high-volume clubs showed that they can compete too. Planet Fitness (#7, $330 million in revenue), Vasa Fitness (#26, $50 million) and The Edge (#31, $39 million) all had an excellent 2015. With an average single membership dues price of $13, these clubs proved that low prices can add up to big revenues. You don’t even need to operate on a massive scale--while Planet Fitness has hundreds of locations, Vasa Fitness only had 20 locations in 2015, and The Edge only had 11.

4. Quick hits from the Top 10 clubs on the list

  • Only 3 out of the top 10 earning clubs are public companies (ClubCorp, Town Sports International and Planet Fitness).
  • The company with the most locations in 2015 was Planet Fitness (58 owned, 1,066 franchised).
  • The company with the fewest locations was XSport Fitness, with only 36 locations.
  • The #1 company (LA Fitness) earned $1.92 billion in revenue. The #10 company (Cruch) earned $161 million.
  • The oldest club is ClubCorp, which was founded 59 years ago in 1957. The youngest is XSport, which was founded just 19 years ago in 1997.

Want to see more industry trends? Find out what the Club of 2020 is going to look like:

club-of-2020

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