Health Club Owners Offer Advice on Surviving during the Recession
Hold on Tight: Veteran club operators who have survived past recessions share what they are doing to survive in today's troubled economy.
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Family First
If there's one thing that successful veteran club operators have in common, it's that many of them offer a wide range of multisport activities, such as swimming and tennis, aimed at the family market.
Although low-price, fitness-only clubs have a good chance of making it through this economy, the safest haven in this economy is to have a large multisport tennis club catering to families, Beusman says. The clubs that are at the greatest risk, he adds, are the mid-priced fitness-only clubs.
Buchholz says tennis is going through a boom period at Miramont. Schwartz says that the past 12 months have been the best 12 months for tennis at Midtown. The Midtown facility in downtown Chicago exceeded $3 million in tennis lessons last year, Schwartz says. Although the number of private lessons at Midtown declined slightly, semi-private lessons, in which two or more members are in a lesson with a tennis pro, increased. The semi-private lessons cost more than private lessons but are less per person, Schwartz says.
Youth lessons at Midtown also increased, a sign that members with children want their kids to enjoy the club experience as much as they do.
"When people make decisions to cut back on expenses, they form either consciously or unconsciously a hierarchy of priorities," Schwartz says. "The club's best defense against the recession's impact against attrition at any time is to involve the member in as many club activities at a significant level as possible. The more significant the involvement, the higher that item will be on the hierarchy of what is to be retained in a recessionary period — or any period."
The Weymouth Club in Weymouth, MA, opened a 12,000-square-foot kids center last year in its 200,000-square-foot-club for children ages 8 weeks to 15 years old.
The kids center, called the Energy Center, includes rock climbing, an arts and crafts station and a dance studio. The club has added 300 family memberships since opening the center, says Jeff Linn, assistant executive director of the Weymouth Club.
At Red Lerille's Health and Racquet Club, Lerille is increasing his club's appeal to families by putting in a water park, which he expects will be completed in April.
With the unsteadiness of the current economy, Lerille says he is just glad he has a place to hang his hat after 46 years in the business.
"I'd move in here if I have to," Lerille says. "I'd do whatever I have to do to survive."
See "What Others Have to Say" sidebar for a sampling of what Top 100 club operators have to say about 2009.
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