Interview with Mark Mastrov and Jim Rowley, New Evolution Fitness Co., Lafayette, CA
More than a year after leaving 24 Hour Fitness, Mark Mastrov and Jim Rowley are spearheading new ventures, including their latest acquisition: Crunch.
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Mastrov adds: “We've known Doug Levine for a long time. I've had the opportunity to sit down with Doug twice in the last six months to pick his brain and get his take on how he built the brand and where he found success. I had a chance also to sit down with [former Bally CEO] Lee Hillman, who bought the brand from Doug, and get his take on what he thought were the best ideas that they were going to leverage at Bally that didn't come to fruition for a whole bunch of reasons after he left. I've also talked to Tim Miller. We're going to try and continue to build off of the legend that Crunch built, which is that irreverence, inclusiveness, cool, hip, kind of funky brand that it is.”
The Crunch company is a pared-down version of its former self, emerging from bankruptcy with 18 clubs compared to the 28 clubs it had before entering Chapter 11. Crunch also went from six major markets to four: New York, Los Angeles, San Francisco and Miami. The company closed clubs in Chicago and Atlanta. Expansion back into these two markets isn't likely, Mastrov and Rowley say.
“We've got a big appetite,” Rowley says. “We've got a lot of exploration that's happened over the course of the last six months. We have interest in operating outside of those [four] markets as well, but the foundation to Crunch's success in the future will be those four core markets.”
Crunch was scheduled to open its newest club this month in Danville, CA, in the San Francisco area. Mastrov says NEFC will probably double the number of Crunch clubs over the next year. Exactly how many Crunch clubs will open remains to be seen.
“Sit back and watch,” Rowley says. “You'll see Crunch continue to embrace its irreverence and continue to attract new people to fitness.”
Working at NEFC has allowed both Mastrov and Rowley more freedom than they had at 24 Hour. They don't have the same concerns they had at 24 Hour, which included more than 400 clubs, more than 3 million members and many attorneys, accountants and board members. Flexible hours have allowed each more family time. Mastrov has four children ranging in age from 18 months to 8 years. Rowley has three children between the ages of 8 and 13.
“Mark and I have found a way to pace ourselves both professionally and personally,” Rowley says. “Our company is free flowing. It's creative. There's no hierarchy at NEFC. Everybody is included. It's the most liberating year that I've ever experienced in my life, and we had a great run at 24 Hour Fitness.”
Mastrov still hears jokes from colleagues about why he went back into the fitness business.
“A lot of people say, ‘Hey, with all the money you made from your exit at 24 Hour, what the hell are you working again for? Why don't you just enjoy life?’” Mastrov says. “My view is, I am. The quality of life that I have now is greater than it's ever been, and I'm happier than I've ever been. The reality is, there are a lot of things that one can do in life. I love the fitness business. It's a lot of fun. It's what I know. It's all I know. It's pretty much all I can do.”
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