Boom or Bust in the Fitness and Pilates Markets
Pilates franchise opportunities experience exponential growth in the UK, whilst other fitness franchises hit the brakes worldwide!
On July 12th 2022 the World’s biggest Pilates Franchise ‘Club Pilates’ with over 750 studios announced a 50 club Master Franchise deal in the UK allowing the Master franchisee Richard Uku to open 50 Club Pilates studios over the next 10 years. Club Pilates currently operates in Canada, Australia, New Zealand, Japan, South Korea, Singapore, Dominican Republic, Saudi Arabia, Mexico, Austria, Germany, and Spain in addition to its base in USA. Richard Uku moved to the USA from the UK 20 years ago, prior to that he had worked in finance in London. He and partner Lisa Uku have owned four Club Pilates Studios in New Jersey, USA since 2016 and since 2016 Richard has added 2 more new Jersey Club Pilates studios to his Portfolio.
This Club Pilates announcement comes on the back of a UK launch in the UK in March 2022 for Franchise partners to open Australian brand ‘Studio Pilates’ franchises in this country. Studio Pilates currently has 60 Franchise studios in Australia, New Zealand, China and the USA
Both Club Pilates and Studio Pilates recognise that in fitness and Pilates terms the UK market has always sat several years behind the USA and it has looked over the Atlantic for its fitness inspiration. There are currently no National Pilates Brands in the UK, the biggest brands like Chilli Pilates, Ten Pilates or aspiring franchisee Runway Pilates can at best be only described as local or regional and whilst there are apparatus based Pilates studios within national Health Club brands like David Lloyd Leisure, Pilates is not the shop front of their business.
The introduction of International Brands as franchise opportunities in the UK is coming at a time when global niche Franchise operators in the Fitness arena are suffering a major deceleration in growth. Take the worlds largest fitness franchise brand, Australia’s F45. F45 is a HIIT based concept with over 50 locations in the UK and more than 1000 worldwide, it focusses on High Intensity as well as Functional Fitness. In August 2022 F45 F45 Training is slashing jobs and changing, Adam Gilchrist is stepping down as CEO. F45 has got rid of over 40 percent of its Head office staff stating the reason as “ongoing macroeconomic uncertainty”
So is there something special about Pilates that sets it apart from the effects of the macroeconomic climate in comparison to mainstream or other niche fitness concepts? The reality is that global brands have predicted a much quicker rebound following the COVID19 lockdowns. Location based fitness companies have watched at-home fitness companies like Peleton, and ifit decimated by a return to face to face training, causing financial strife and layoffs in the at home fitness sector. In addition, the effect of the Ukraine War on the wallets of consumers worldwide combined with the impact of the lingering effects of economic downturn as a result of COVID19, has meant that not only are small Pilates studios and single site gym operators struggling to return to profitability, the big operators are also scaling back their growth expectations to 5 and 10 year more realistic steady growth plans as opposed to bullish 1 – 3 high growth expectations.
The Club Pilates and Studio Pilates Franchisees can announce the launch of their master franchises in the UK, but we will watch with interest who takes on the financial commitment to purchase the individual franchises in the current economic conditions !
Chris Onslow - Pilates and Fitness Business Consultant
Chris Onslow, has run Pilates focussed businesses since 1998. He and his team specialise in supporting Pilates entrepreneurs and business owners. With a rich history of owning and running successful Pilates studios in the UK, and supporting others in Europe and the Middle East, Chris has broad expertise in maximising profitability and optimising operational efficiency. His agency provides top-tier advice on selecting new, pre-owned, and hireable Pilates equipment from renowned brands such as Align-Pilates, Balanced Body or Stott-Pilates/Merrithew. As the founder of Mbodies Training Academy, Chris continues to revolutionise Pilates education, offering premier online and hybrid CPD and qualification courses for Pilates apparatus instruction and special population CPD. Discover more about how Chris can support your Pilates Business or home exercise choices at www.pilates-consultant.co.uk