Los Angeles, known for its health-conscious population and trendsetting fitness culture, presents a unique set of challenges for boutique fitness brands. The city’s saturated market, discerning clientele, and ever-evolving trends create a complex environment for fitness entrepreneurs.
Anthony Geisler, a veteran in the fitness industry with experience in the LA market, notes the shift in consumer preferences: “The fitness space… has really transformed from big box locations and people looking to go and spend a little bit of money and run a treadmill or lift a weight. And really shifted about 15 years ago over to boutique fitness where people want specialized services and boutique services.”
LA Has Intense Competition Between Gyms
One of the primary challenges in LA is the intense competition. The city is home to numerous established fitness brands and a constant influx of new, innovative concepts. Standing out in this crowded market requires a unique value proposition and exceptional execution.
“Know your competition. Analyze them and learn from them. Look for opportunities in things that they are not providing and offer those things to your customers.” Gwen Lane, founder of The LA Girl.
The discerning LA clientele adds another layer of complexity. Angelenos are often early adopters of fitness trends and have high expectations for both the quality of workouts and the overall experience. Geisler emphasizes the importance of staying ahead of trends: “I kind of look at where people are spending money because it’s not that I’m a profit of what’s going to be next. But I look early days and see where people are spending money and start to see how those things trend and then utilize that to make decisions.”
The fast-paced lifestyle in LA also influences fitness preferences. Geisler observes, “If you look at workouts today, there’s a lot of trends where they’re shrinking by time. It used to be a 60-minute workout, then it was 50, then it was 40. Now, there’s a lot of stuff advertising ways to do it in 20.” This trend towards shorter, more intense workouts is particularly relevant in a city where time is at a premium.
Marta Rus, wellness expert, on LA’s fast paced fitness scene “Slowing down can make us happier… taking things a little slower can benefit your wellbeing, productivity, and quality of life, helping you appreciate small moments that you can overlook if you’re hurrying.”
Another unique challenge in LA is the high cost of real estate. Prime locations come with hefty price tags, which can significantly impact a boutique fitness brand’s profitability and growth potential.
Mitchell Glasson, Associate Vice President at Matthews Real Estate Investment Services, says “Big-box gyms can downsize their utilization, cut rents, and model themselves after franchisee operators like Orange Theory and Anytime Fitness, focusing on customer experiences and minimizing the financial burden of large real estate spaces.”.
You’re Definitely Going to Need a Place for People to Park
The city’s car-centric culture also presents challenges for boutique fitness brands. Unlike in some other major cities, LA residents often prefer locations with easy parking or those close to their homes or workplaces. This can limit the potential catchment area for a studio and necessitate careful location planning.
Despite these challenges, the LA market also offers significant opportunities. The city’s influence on global fitness trends means that a successful concept in LA has the potential for wider reach. Geisler hints at this potential for growth: “Looking at another company right now that has 2,000 locations, but they don’t sell any retail, and I know I can sell about 100 million in retail through that base.”
For entrepreneurs considering entering the LA boutique fitness market, Anthony Geisler offers this advice: “Plan to work your ass off, not take any days off and make very little money for a long period of time before you or you plan to do all the other things you think that you’re going to do, not work a lot and make a lot of money.”
While operating a boutique fitness brand in Los Angeles presents numerous challenges, from intense competition to high costs and demanding clients, it also offers the potential for significant rewards. Success in this market requires innovation, adaptability, and a deep understanding of the unique LA fitness landscape.
