Transforming a Fitness Center from Loss to Profit

Transforming a Fitness Center from Loss to Profit

OVERVIEW

Financial success is our priority.

Because of this single-minded focus, a Fortune 100 company chose us to take over management of their fitness center. The fitness center had been operating at a loss for a long time. 18 months after bringing us on, the center posted a profit. In another five years, that profit increased by a factor of ten.

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SITUATION

A Fortune 100 company was operating a fitness center at its world headquarters at a net loss of $250,000 per year in EBITDAR.

ACTIONS

Immediately upon taking over the management, Midtown Health developed and implemented a marketing plan to sell club memberships to others in the area, which we accomplished without disrupting the corporate culture of the fitness center. We also leveraged our extensive range of central support services to save the fitness center money. By implementing industry best practices, we quickly brought the club up to maximum efficiency.

RESULTS

Within 18 months, we had eliminated the EBITDAR subsidy and posted a profit of $25,000. Within five years, we increased the EBITDAR profit to $250,000 annually.