The Compound Club
Workout without gymtimidation
Executive Summary
During, and in the wake of the pandemic, there has been a shift in the fitness market, people’s exercise habits and gym demographic footfall.
The pandemic also raised the importance of mental, as well as physical health as customers not only exercise for a ‘body and look’ approach but for general wellness too.
2019 was the strongest year the UK fitness industry had recorded in terms of market value and penetration. 2022 data reflected a drop to 2018 levels.
Summary of key facts
| 2019 | 2022 | +/- | |
| Memberships | 10.4m | 9.9m | -4.7% |
| Mkt value £ | 5.1b | 4.9b | -4.3% |
| Mkt ptn | 15.6% | 14.6% | -1% |
| Total clubs | 7239 | 7063 | -2.43 |
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Data for the first quarter of 2023 isn’t available to date but The 2022 Leasure Industry Database report states the UK market is well on its way back to pre-pandemic levels valuing on par with 2018. The industry’s strongest year to date was 2019.
Concept
The Business
The Compound Club is a boutique gym delivering classes and personal training that specialises in IWT, MetCon, boxing and strength training. Additional revenue streams include:
- Online training and classes
- On-demand classes, mobility sessions and tutorials
- Coffee and smoothie bar
- Nutrition and lifestyle coaching
- Educational seminars
- Courses
- Merchandise
What is a Boutique Gym?
A boutique fitness studio is a small gym that focuses on group classes and specialises in one or two fitness areas. These studios charge two-four times more than other health clubs.
According to figures from zippia in the US the Boutique gyms account for 42% of all gym memberships. The market is expected to continue rising and is projected to grow by nearly 17% by 2025
Business Aim
The aim of the business focuses on the changes to working and habits andd locations post pandemic and the rise in recent years of specialist studios and gyms. Local health club, budget and public gym sector classes rarely provide classes of the same quality compared to those delivered in central London facilities.
This creates a gap in the mid market gym and boutique sector that The Compound Club will fill.
The business model addresses historical and post-pandemic factors faced by the industry and individuals alike such as:
- Lack of consumer time – Live and online classes and PT sessions will be either 30 or 45 minutes in duration.
- Consumer confidence – All attendees receive a free induction providing confidence before their first class.
- Class and exercise guidance – Screens are in place at every bag station and around the workout space using new technology that displays exactly what needs to be done.
- Delivery of coaching – The screens allow coaches and trainers to deliver technical instruction to each and every participant.
- Gymtimidation – Experienced boxers and weight lifters are discouraged by limiting weights and boxing content.
- Cost effective – The pricing structure will comprise several alternatives including, PAYG, block bookings and cost effective memberships of avid users.
- Product quality – people working from home are seeking alternative local gyms that provide a service on par with specialist London clubs.
Target Market
- Classpass and mindbody released data that put strength training as the top workout with a 471% increase in bookings from January to October.
Affluent females, lifestyle savvy. Appreciate the benefits of health and expect quality service.
The audience is the boutique fitness movement backed by a generation of members who take a big interest in their health and fitness. Gen Z and Millennials are a group of consumers who are willing to pay a premium price for health-related services.
They want connectivity, community, a specialist offering and an innovative approach to wellness. The gender split in the UK for class attendance is a massive 78.4% female.
Market Reach
Studies have found that the average gym commute varies depending on price and what they offer. Budget gyms typically have members that commute 2.3 miles whereas health clubs have a wider reach of 5.7 miles on average.
The average time people commute to Boutiques and specialist gyms like CrossFit or PT studios is 5.5 miles.
There is no current data for commuter belt satellite belt towns but from the Boxing, Bars & Bells database, the current longest commute for a PT session, in this case, 30 minutes duration, is Catheram which is approximately 10 miles.
Due to the current member profile and demographical location of clients and members at Boxing, Bars & Bells, The Compound Club will extend its marketing reach to an equal distance.
Current Business Figures and Demographic
Boxing, Bars & Bells class and PT client breakdown
| Revenue | Jan 23 | Feb 23 |
| PT | £4,425 | £3,837 |
| Online | £2,534 | £1,547 |
| Class | £1,446 | £1,446 |
| Total | £8,406 | £6,831 |
Class data
34 active class members
| Total bookings | 190 | 182 |
| Total classes | 52 | |
| Available places | 208 | |
| Class capacity % | 91 |
Average class customer visit per/week:
| 3 times a week | 4 |
| 2 times a week | 13 |
| Once a week | 6 |
| Less than once | 11 |
PT data
25 active PT Clients
- 20 Studio clients
- 5 online clients
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Average weekly PT session frequency
| 30 min | 14 |
| 45 min | 27 |
| 60 min | 3 |
Class member and face to face PT client commute
- Blindley Heath 1
- Catheram 1
- Crawley 4
- Dormans Park 1
- East Grinstead
- Edebridge
- Oxted 2
- Dormansland 2
- Lingfield 30
- South Godstone 4
- Warlingham 1