Equinox. Soul Cycle. CycleBar. Over the past decade or so, spin studios have become more than a way to get a good workout. They’ve become lifestyle brands. These trendy franchises show that there’s clearly money to be made from spin studios, but what if you have something smaller in mind? Are spin studios profitable if they stay independent? Without a big name behind it, your spin studio will likely have a more challenging road, but that doesn’t mean success is out of reach.
With a bit of know-how and some helpful tools (such as professional cycling studio software), your spin studio will be well on its way to success. Ready to get started? Then keep reading.
Exercise.com can help streamline your spin studio operations. Book a demo to find out more.
Are spin studios profitable?
According to a 2016 report by the Association of Fitness Studios, indoor cycling studios generated 55% more revenue than other types of fitness studios. While the report doesn’t give a specific income number, we can look to some of the most successful spin studios for clues. For example, Equinox Holdings, Inc. (parent company to SoulCycle) earned an estimated $1.3 billion in revenue in 2017. Meanwhile, Xponential Fitness (parent company to CycleBar) earned an estimated $148 million in 2017.
How have things changed in recent years for spin studios?
Despite this apparent good news for prospective spin studio owners, a keen eye will notice that all of these numbers are dated before 2020. Many businesses, across all industries, closed due to global challenges, and spin studios were no exception. FlyWheel and Cyc Fitness are two such casualties; both companies filed for bankruptcy in 2020.
One important change did occur in recent years: The popularization of at-home spin studio services. By bringing spin classes to customers’ living rooms, companies like Peloton and Myx Fitness were able to capitalize on the exercise-from-home trend. Even SoulCycle jumped on the trend and began offering its own at-home product in 2020.
In spite of the upfront cost of purchasing an at-home spin bike, these services still claim to save customers money when compared with in-person spin classes. For example, attending three $36 SoulCycle sessions per week will run you $432 per month. The Peloton website states that with their service, those same three workouts per week will only total $88 per month.
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How can I help my spin studio be more profitable?
As time goes on and trends change, no one knows if customers will ultimately prefer in-person classes or if they’ll prefer the comfort and convenience of at-home workouts. The most successful spin studios will likely be the ones that can be flexible and creative enough to meet the changing preferences of their customers.
Your studio may decide to stick to in-person classes, transition to online sessions, or offer a hybrid of the two. Whichever way you go, know the pros and cons of your approach and make an informed decision that will be good for your business.
The Bottom Line: Do spin studios make money?
Spin studios have proven to be a profitable venture, and there’s no reason they can’t continue to be profitable for many years to come. If you’re prepared to work hard and meet the demands of a changing market, your spin studio’s success will follow.
Exercise.com can help you run your spin studio like a pro. Book a demo to learn more.