Food And Fitness Franchise Trends

Food And Fitness Franchise Trends

I made the transition from restaurant franchising to the fitness and wellness sector this past year, and have seen the migration momentum continue to build as many restaurant franchise owners are also making the switch from multi-unit restaurant operators to multi-unit fitness studios. As a former executive from the quick-service and fast-casual restaurant space, I’ve seen firsthand the restaurant franchise industry’s migration to the fitness and wellness space. The fitness franchise industry has been gaining momentum and industry players from all franchise sectors are taking note.

Fitness is a simpler model to operate

Fitness franchise owners can scale to multi-units and, instead of operating one restaurant with 50 staff members, may have five units with 30 total employees. Fitness is a simpler model to operate One of the biggest differences in fitness and restaurant franchising is that the business model in the fitness space is less complicated. However, that’s not to say fitness is easy by any means, as you still have to be consistent every day, provide an exceptional customer experience and serve your customers just like in the restaurant business. In fitness, there is room for owner-operated or manager-run models, and in both scenarios, you are dealing with less staff, no food handling issues and very limited inventory compared to restaurants. many big players like Giani, Frespresso, Grillin, Gosouth, Monginis provide franshise opportunities.

Food And Fitness Franchise Trends

Food And Fitness Franchise Trends

Lower Investment Costs, Fewer Barriers to Entry

There is naturally more flexibility in fitness because small business owners can afford entry and the business model can be attractive for both mid-size and large multi-unit groups. The simpler business model and generally lower buildout costs mean a lower cost of entry to get started as a franchise owner in the fitness space. Restaurant franchises comparatively are more expensive, which has helped contribute to the restaurant sector being dominated by highly capitalized ownership groups.

More stability, less disruption

If you look at the restaurant industry, there are some serious disruptions that have emerged that can rapidly erode profits without major changes to the business model. These include third-party delivery services and raising minimum wage laws on top of ever-rising food costs. Minimum wage laws are not as impactful to fitness as there are far fewer employees and even fewer who are near the minimum wage. Some fitness regiments come and go, but the fitness business model is generally stable and consumer spending in the industry continues to grow as people spend a larger share of their wallet to reach their fitness goals.

Additionally, while technology has certainly disrupted many other industries, it’s actually served to complement the fitness industry, making the one-to-one relationship with a fitness professional more meaningful, and insight-driven. Private fitness is proving to be lucrative, too. In 2017, Fitness Together’s highest annual revenue studio reached $925,679 with the average annual revenue of the top third of studios being $564,378.

Improving people’s lives

Demand for personal trainers has grown steadily over the past five years, and IBISWorld estimates that growth will continue between 2018 and 2022. As a whole, our population is moving to a place where fitness and health are key parts of our lifestyle, so when you open a health and wellness business, you are ultimately helping people find solutions to real-life problems. As an owner, knowing you have a business that is not only profitable but also allows you to see the positive transformations in the lives of your customers, is an incredible feeling that is hard to pass up. From my experience in both the restaurant and fitness/wellness space, I’ve heard from entrepreneurs that they are finding fulfilment from being in the health and wellness industry compared to others. Much of this growth is because consumers are no longer looking at the money they spend on fitness as a luxury, but rather a necessity. I have seen firsthand how this demand is affecting the fast-growing fitness space versus the restaurant space.


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