LEADERSHIP
STEPPING UP THEIR GAME After more than a decade on the scene, the future is looking bright for Stepz Fitness. By Nick Hall
T
he home-grown health chain has built its reputation on 24/7 operation, but these days, quick and convenient is the name of the game. With the explosion of functional fitness taking hold of the health and wellness space, more consumers are forgoing the big box gym in search of something more bespoke. For traditional 24/7 fitness chains, the reality is simple: adapt or innovate. “When I took over the franchise in 2017, I saw that there was a real need for functional, group training,” Stepz Fitness franchisor Sam Waller says. “In the past, we just couldn’t deliver the volume of high results that we knew we were capable of in group training. This was a way that we could offer members stronger results, while creating a more highvalue environment.” But unlike other chains that had been tackling functional fitness giants F45 and Barry’s, Waller knew he had to get the balance right. It wasn’t enough to just add a bolt-on to Stepz Fitness’s existing framework; the new model had to appeal to a high-value customer while simultaneously providing a profitable operation for franchisees. What followed was nearly two years of extensive research and development, taking into account costs, format and most importantly customer demands.
HYBRID MODEL To combat the evolving challenges of the fitness industry, Stepz introduced a hybrid format, offering functional and group training, alongside the brand’s established 24/7 model.
“It just makes sense from a business perspective,” Waller says. “The low-cost, high-volume of membership that has come along with increased competition in the 24/7 space was always going to be a challenge, so the new concept was a way to boost business performance from a high-yield perspective. We aren’t racing for the most number of members, it’s about providing a competitive, value-driven member offer, which is something the market really needs.” While introducing a format that appealed to members was one challenge, making sure the new initiative was franchisee-friendly was another. Rather than have existing franchisees on the hunt for alternative locations or sites, Stepz redesigned the studio set-up, controlling costs and diverting space where needed. “Existing gyms started their redesign this year, but going forward, the footprint will still be at around 350 square metres,” he says. “As opposed to getting a bigger site, we’ve redesigned the space, utilising 100 square metres for group training, where we only need around 220 square metres for the 24/7 model. This way, we run six classes a day, with the two models running as a hybrid. We’ve gone all in on group training.” And while franchisees understand the need to innovate and adapt, transitioning an existing network of gym owners to a new format is never easy, or cheap. FEB/APR 2020 | 60 | WWW.FRANCHISEBUSINESS.COM.AU
