What It Takes To Succeed In Boutique Fitness Today

Studio Grow’s Lise Kuecker maps out the future of studio businesses and the essential tools every owner must have to thrive.

Boutique fitness growth is set to skyrocket over the next few years, making it an attractive space for prospective entrepreneurs. But the massive opportunity also comes with potential pitfalls for those who don’t understand the industry and where it’s headed.

In the “The State of the Studio: Where the Boutique Fitness Industry is Headed Next” webinar, Lise Kuecker, founder of boutique fitness consulting firm Studio Grow, shared insights designed to help studio owners get ahead of the changes in the market. Kuecker, whose company has been helping to launch and grow studios for close to a decade, dives into the latest on modalities and competition, sales and marketing, and recruitment and labor. Plus, she outlines the top reasons studios struggle and how to overcome them.

To illustrate how quickly the market is changing, Kuecker highlighted the major shift in the modalities consumer prefer over the last six years. While barre was “dominant” back then, she said it only represents 2% of studio openings today. Similarly, she’s found that cycling went from the second slot to the second smallest at 4% today. Pilates, of course, is the current leader, with 46% of new studios focusing on this modality.

While yoga only represents 27% of new studio openings, certain formats are heating up — literally. Studio Grow reports that heated yoga is on the rise, and it’s for one good reason. “Heat is an apparatus. It’s something that can’t be replicated at home. People are digging into that deeply,” she said.

When it comes to Pilates, contemporary formats represent 70% of studios open today, but Kuecker said, that’s not to say there’s not opportunity elsewhere. While studios that identify as classical only represent 5% of the market, the demand is there. “It’s important to know when you actually dig into the numbers, people are still looking for classical studios. This is a core differentiator. If you’re leaning into the classical style don’t be shy about sharing this it’s something people are seeking out,” Kuecker pointed out. Beyond that, she said specialties continue to emerge, including athletic and recovery.

Kuecker emphasized that in a crowded market, differentiation is key — though she’s finding that the market is becoming more commoditized and homogenous. “The truth is we do sell the same modalities, but it’s starting to feel like we’ve gone a step beyond that, that in our marketing, we’re actually selling the same experience. And this, to me, it’s the biggest problem facing studio marketers,” she said. “It only really works if we’re racing towards the bottom.”

Further, consumers are leaning into what Kuecker calls Luxury 3.0. This goes beyond the latest handbag and manufactured scarcity. She said luxury in fitness is sensory, bespoke and hospitality-driven, not just about price. Pop-ups and limited editions lend themselves to this idea. Kuecker points to Tonal’s sold-out New York studio or Lululemon’s short-term Glow Up Studio as examples of massive impact that didn’t require multiyear leases.

But, she advised, success starts with the fundamentals. Kuecker said too many studios skip right over building a sound foundation, which she said begins with presale. She cautioned that presale isn’t about selling in to boost initial numbers. Rather it’s about converting interest into long-term memberships, a fact that too few studios recognize — and it shows. She cited intro package conversion rates at just 5 to 15%, and 13-month retention falling below 10%. “Presale is probably our greatest indicator, not just of short-term profitability, but actually of long-term profitability,” she said. “We recognize that the more successful a pre-sale someone had had, the more likely they were to be profitable at the three-year and five-year mark.”

Watch the webinar on demand to learn:
• How modalities are trending — and what it takes to differentiate your studio from your competitors
• The three critical phases of a presale, and why automation isn’t enough
• The emerging specialties, who they’re targeting and where they’re taking off
• How the market is shifting geographically, and the cities that hold the most promise
• How the industry is contributing to the shortage in qualified instructors
• How marketing is changing as social media evolves, why first party data is king and the keywords to avoid
• How to move past Luxury 1.0 to attract today’s consumer

Watch Now

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