Gym owner makes $80k/mo from a 1,200 sq ft basement…

ABOUT THIS ARTICLE

Gym World comes from Kilo co-founder John Franklin, who shares lessons about making money in the fitness industry.

…with a Gen Z clientele

What’s up Gym World?

Gen Z (those born between 1997-2012) is the latest generation to enter the workforce.

The Washington Post says bosses can’t crack their lingo, so I asked a Gen Z coworker for a primer:

  1. Slay = you did something well
  2. Cap vs no cap = a lie vs something that’s true
  3. Touch grass = get in touch with reality
  4. Bussin’ = describes something awesome
  5. Frfr = for-real for-real
  6. Sus = giving the impression that something is questionable or dishonest; suspicious

The Gen Z version of Don Draper would pitch ideas like this:

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Slay.

That said, more Gen Z’s are making adult money and want to spend it on services that improve their health and well-being.

While it doesn’t sound like a big deal, here’s why this should be on every gym owner’s radar:

Few gyms cater to Gen Z

Not only does Gen Z influence many of the latest trends in fitness, but they also go to the gym more than the general population.

Most gyms target 35-45-year-olds; elder Gen Zs will be in that demographic in the next 10 years. So if you want to future-proof your business, it pays to understand what they like and want.

Above anything else, Gen Z looks for community and connectedness. 73% of them report feeling isolated. A columnist from the NY Times recently shared how more people are using group fitness to fix that:

And while Gen Z is still a decade away from their prime buying years, there’s an opportunity for coaching gyms to sell to them now. Few gyms serve this demographic, so it’s no surprise that 91% workout at big-box gyms.

Luckily we found someone who is slaying Gen Z gym ownership. Let’s talk about Dane McCarthy.

He founded The Athletic Clubs, a series of unique training gyms in NYC that cater to a younger clientele.

His first location—West Village Athletics—runs out of a 1,200 sq ft basement, has 400 members, and is doing $80k/mo.

So what makes Dane’s approach attractive?

Well, imagine a gym that doesn’t offer flexible scheduling, frequently fires members, and has a strict dress code.

Unconventional? Yes. But these rules are drawing younger crowds into Dane’s gyms.

There’s more beneath the surface, so let’s get into it:

If you train at The Athletic Club, you train in a squad

Squads recreate the college athlete experience. You train with the same 20 people at the same time 2x a week.

Each squad is named after Australian beaches (Dane is Australian). This way, you’re part of a team with shared goals, interests, and fitness levels.

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Squads are like a college sports team for recent graduates of craft colleges.

Like a college sports team—if you don’t show up, you’re kicked out and replaced by someone on the waitlist.

💪 Whereas most small gyms offer flexible and lenient scheduling, squad training prides itself on routine and consistency. This is also great for packing a lot of members into a small space.

You hang out with your squad

Like any college team, squads socialize and meet outside the gym. Because they spend a lot of time together, they build strong connections.

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The Athletic Clubs have a Run Club and monthly social events for squads to hang out.

8.5 million people live in NYC, yet many are lonely and miserable.

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There’s a whole thread on Reddit of people who can relate.

Studies show that working out with friends improves mental health and well-being. So while training on the same days at the same times with the same people is restrictive, there are huge social benefits.


User-Generated Content on steroids

The rise of influencers on social media is changing how consumers make decisions. Gen Z often uses TikTok to discover new places and things.

That’s how Dane drives a lot of business. Because members create and share their own content, younger crowds find it more relatable and interesting.

💡 NYC influencers have way more reach than suburban moms. West Village Athletic has over 382M impressions on TikTok.

This unpaid video has over 100,000 views:

@steve__cole

I love everything about NYC

♬ Puff – Hany Beats

Everyone follows a dress code

Scroll through the West Village Athletic Instagram page and you’ll notice that everyone wears black.

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Dane says it’s because members don’t have to buy Lululemon sets every week, so it removes a layer of comparison.

I think it’s because:

  • it’s cool, and no one else does it,
  • it attracts attention and interest to the gym, &
  • it builds the gym’s brand

Tl;dr: takeaway for gym owners

Looking ahead, there’s a great opportunity for fitness entrepreneurs to capitalize on Gen Z.

They want more than just a place to workout; they look for community—something you all pride yourselves on delivering to your members.

However, surveys show that most coaching gyms do not resonate with Gen Z.

Fitness to them is a holistic experience, and they’re not interested in diet culture like previous generations. They want to be happy and healthy.

Dane gets it. He figured out a way to take existing concepts in fitness and added a unique spin to better connect with the market, and it’s working well for him.

To learn more, watch or listen to the latest Gym World.

Stay slaying,

j

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