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Posted in Clubs, Cycle

A cycling studio sitting empty is costing you. It’s costing you in return and in real estate.

At a time when industry reports suggest that average customer spend is slowing and typical fitness facilities are dropping in profits1, cycling boutiques like SoulCycle and Flywheel are bucking the trend: earning more than twice as much per customer, generating thousands of attendances, and fast becoming the industry’s most lucrative spaces.

Find opportunity in the threat. Take advantage of the enormous opportunity there is in the cycling space. The critical first step is to confirm what success looks like. You can only ever be successful if you have a clear definition of what you want to achieve.

Determine your current performance against benchmarks. Then set new goals to increase club profitability, add more value to your membership and create much greater mass-market appeal. Setting some goals will inspire your team, highlight what’s possible, clarify expectations and help manage performance.

Start by getting an accurate picture of your current performance against a high performance benchmark.

What does best look like?

An in-depth analysis of all Les Mills New Zealand clubs, who perform well in terms of cycling uptake, revealed key performance indicators to strive toward. If you want to turn good into great key performance indicators:

  •          Your average weekly visit per member at the club is 1.5
  •          You offer 40 live classes which average 70% of capacity
  •          Your virtual classes run at 12 % of capacity.

Performance benchmarks

  •          Weekly cycling attendance

Good performance is considered 20% of all weekly club visits generated through cycling (with an average club visit per member of 1.5 per week).  25% is the percentage of club attendance you would strive for with cycling if all performance indicators are at excellence level.

  •          Maximum weekly capacity

Aim for 32% of maximum weekly capacity supply.  Top performers have 40-80%. The Union Square branch of SoulCycle can offer a maximum of 5700 rides per week and they do 3412 – this is 59.85% usage of maximum weekly capacity supply. The average across the group is 60%.

There is no exact formula that tells you what you should be aiming for in 12 months, three or five years. It depends on your belief in your own business and team, your capacity to increase focus and resources, and your ability to drive change.