Eliminating Financial Pain Points

Current market forces have created challenges in running a fitness business that can savage the bottom line. Here’s how to handle issues in three of them: staffing, sales, and supply chain challenges.

BY JULIE KING & JIM SCHMALTZ

Both established businesses and startups face similar challenges as technology, consumer behavior, and the unpredictable global economy create new costs and chokepoints. With so many market forces out of the control of operators, they have to navigate these obstacles promptly and efficiently.

HFB identified three of these challenges and asked experts to provide advice on how to solve these problems before they disrupt operations and drain revenue. The three areas HFB focused on are staffing, sales, and supply chain.

Elwenni

Comfort

STAFFING: Finding and Retaining Talent

Since the pandemic, gym operators are contending with staffing shortages, rising employee expectations, and more complexity in running a fitness business.

“The pandemic reset the fitness workforce,” says Jomana Elwenni, vice president of people and culture at Momentic Studios. “Historically, the industry has functioned like a gig economy, with fragmented schedules, unclear career paths, and loosely defined leadership roles. But operators are realizing this model doesn’t support long-term growth.”

Plus, slower financial recovery in some markets has created pressure around compensation and staffing levels.

“Equity, bonuses, and profits have taken longer than expected to bounce back after Covid,” says Paula Comfort, founder and chief recruiter of Hire Ground Talent. “That has caused frustration and insecurity in the workforce.”

This evolving landscape requires industry players to rethink people management to succeed.

Expanding the Talent Pool

Across multiple roles, health clubs and boutiques should address hiring needs by prioritizing recruiting and widening their nets.

“Recruiting talent should be approached with the same intention, effort, and care that operators put into attracting new members,” Elwenni recommends. “That means a professional process, updated job descriptions, and transparent compensation.”

Local colleges and universities are a logical source of potential employees.

“Students in kinesiology, sports management, and exercise science programs are eager to enter the industry,” Elwenni suggests. “You can identify talent early and develop future leaders.”

Service-oriented industries such as hospitality, luxury retail, and aesthetics and medical spas are another rich pipeline.

“Boutique fitness is ultimately a hospitality and wellness business,” Elwenni says. “You can teach the workout, but it’s much harder to teach work ethic and how to deliver a premium member experience.”

Among the roles most difficult to fill are coaches and studio or club leaders.

“High-performance coaches often become independent,” Comfort points out. “Truly great instructors are in very high demand and increasingly difficult to attract and retain.”

Plus, the responsibilities of general managers and studio managers now require more business savvy. “Today’s studio leaders need to understand P&L statements, labor management, sales performance, and how to develop a team,” Elwenni says.

The industry typically has promoted strong instructors or top salespeople into leadership positions without providing the operational training needed to succeed.

“But those skills don’t always translate into operational leadership,” Elwenni adds. “Without business acumen and financial awareness, many people struggle.”

Clubs need to prioritize training programs that help develop high-potential employees.

“Offer stretch projects or dual roles so team members can broaden their skill sets, gain exposure to different parts of the business, and develop a more well-rounded understanding of how the organization operates,” Elwenni recommends.

Providing Career Opportunities

Shifting employee expectations over the past few years are gradually shaping industry adaptations as well.

“Candidates today evaluate companies just as critically as members evaluate clubs and studios,” Elwenni points out. “Employees today expect transparency, strong leadership, and real career opportunities.”

According to Comfort, “This isn’t just a job anymore, and career development and growth have become expected. Candidates want to see a visible career path and understand the culture before they join.”

That looks like clearer progression models, such as:

• Coaching: Trainer → Senior Trainer → Program Director → Fitness Manager

• Instruction: Instructor → Lead Instructor → Studio Manager → Regional Leader

• Sales: Sales Advisor → Sales Manager → General Manager

To support team members' growth, operators should also offer specialization tracks in areas such as coaching excellence, education and programming, leadership development, and business operations.

Clarity around compensation is also critical. “Like never before, compensation needs to be extremely transparent,” Comfort says. “Keep it simple and achievable, especially if there’s a variable pay component. Not understanding compensation or not delivering on compensation creates tremendous insecurity for a new employee.”

Flexible scheduling is an important incentive. “The generations that make up the majority of our workforce today value autonomy in how they work, so operators need to create flexibility within clear guardrails that still support coverage and the member experience,” Elwenni points out.

“Historically, the industry has functioned like a gig economy, with fragmented schedules, unclear career paths, and loosely defined leadership roles. But operators are realizing this model doesn’t support long-term growth.” • Jomana Elwenni

Leading Well

The quality of leadership and the structure of the workplace directly impact employee engagement and retention.

“The new environment is all about coaching with performance accountability, which implies development,” Comfort says. “How we communicate, how often we give feedback, and recognizing a job well done all matter.”

That includes:

• Structured onboarding programs

• Clear performance expectations

• Regular one-on-one coaching conversations

• In-person team connection and recognition

• Ongoing professional development

“Strong operators build structure—clear roles, proper staffing, and leaders who know how to manage both performance and people,” Elwenni adds. “People stay when they know what success looks like, see opportunities to grow, and feel supported in getting there.”

According to Elwenni, “The operators that will win in the next decade are building actual careers with clear leadership pipelines, structured development, and compensation models that reward both performance and long-term commitment.”

To learn more about current compensation and other details about the employee benefits in the industry, get the recently released 2026 Employee Compensation and Benefits Report for the Commercial Health and Fitness Industry.

SALES: The Struggle for Leads and Conversions

Even with the greater focus and higher spending on wellness and fitness today, membership sales at health clubs and boutique studios have become more difficult due to increased competition, fragmented workforce responsibilities, and lack of ongoing sales training.

“The fitness and wellness space is more crowded than ever,” says Ashlynne Samii, founder of Excelsior Fitness Group. “There’s always a new shiny studio opening down the street.”

In this saturated landscape, differentiation is essential for sales success. Although workouts may initially attract prospects, a feeling of connection often determines whether they become members and stay.

“Setting yourself apart from the rest is critical,” Samii adds. “Whether you’re a niche boutique or a mom-and-pop shop, you need to pour into your community. People may come in for the workout, but they stay for the community."

Boosting Conversions

Of course, to build community, you need to convert leads. That’s often easier said than done.

“The fundamental sales process remains the same, but converting leads has become significantly harder because of the industry’s growth and competition,” says Chris Appiah, founder and CEO of The Sales Arms.

The sheer volume of marketing messages consumers receive daily fractures attention and creates overload.

“Today’s consumers are bombarded with spam calls, texts, and email blasts, so businesses must adopt a highly deliberate approach to communication,” he adds. That means implementing consistent processes that prioritize high-quality CRM technology and authentic, human-centered connections.

A big part of that is lead follow-up and ongoing nurturing. One of the most common sales failures occurs after a lead first expresses interest.

“The most significant breakdown in the sales funnel occurs during the follow-up and follow-through stages,” Appiah points out.

With the average sales cycle lasting between 14 to 30 days, gym operators need to maintain consistent engagement throughout this period. In fact, at studios, many prospects attend three to five classes before making a decision about membership.

“To achieve the best results, gyms need to provide ongoing support during a prospect’s first few weeks,” Appiah recommends. “This should include all forms of communication—calls, texts, emails, and direct messages on social media. But maintaining this level of engagement is difficult without established processes to ensure proper follow-up.”

Ensuring Ownership

While sales should theoretically be everyone’s job, fragmenting responsibilities among front desk, managers, trainers, and instructors can lead to inconsistencies and lost opportunities.

“In a busy gym, everyone has a lot of responsibilities to make sure members have a great experience,” Appiah says. “When things get hectic, sales and marketing tasks are usually the first pushed to the back burner because they’re the most tedious.”

This can create gaps in lead management, delayed responses, and missed conversions.

“We consistently see the best results when a gym has a dedicated person whose main focus and priority is sales and marketing,” he adds.

That person, plus a general manager, should regularly audit the sales process to ensure the team is properly communicating, implementing the correct follow-up tasks, and reaching out according to the prescribed sales cadence so that leads don’t fall through the cracks.

Even with a dedicated salesperson, gyms should ensure their entire team supports the sales process.

“Understanding where we are and where we are going, with clear expectations, is important to a gym’s success,” Samii notes. “The buy-in of your team can make or break a club or studio.”

“When your team feels confident practicing in a role-play setting, they won’t be afraid to pitch membership to any lead.” • Ashlynne Samii

Training Technique

Ongoing sales training should include a clear, repeatable process that every employee understands. This helps staff to increase their comfort level and close more often.

“Role play, role play, role play,” Samii suggests. “When your team feels confident practicing in a role-play setting, they won’t be afraid to pitch membership to any lead.”

As part of training, reframe the sales mindset, she adds. “Every person who walks in the door chose to be there and is interested in our services, so we’re not pitching randomly. Our job is simply to guide them and recommend the membership or package that best supports their goals.”

Promote a consultative sales approach, rather than a transactional one. “Understanding a prospect’s ‘why’ moves the sales experience from presentation to prescription,” Samii points out. “It starts with the team member making an emotional connection and earning the right to present the membership.”

Tracking Metrics

Performance data indicates how your sales process is working. Appiah recommends a simple approach focused on three core indicators each month:

• Gross revenue change: overall revenue performance

• Total leads added: number of new prospects entering the pipeline

• Total leads converted: number of prospects becoming members

“If all three metrics are increasing month over month, the business is performing well,” he says. “If they aren’t growing, this suggests that the business is retaining current customers but failing to expand its base. And if any of the numbers decrease, that’s a clear red flag.”

Samii

Appiah

Albert

Delaney

SUPPLY CHAIN: Navigating The New Normal

The health and fitness industry was like every business sector when it experienced the ultimate stress test of the global pandemic. One of the biggest challenges during that period was the near obliteration of the supply chain that brought goods from manufacturers around the world.

Post-pandemic, supply chains have recovered but are still vulnerable. Tariffs, surging logistics costs, and geopolitical uncertainty can create havoc and drive up costs. This has forced operators and suppliers to fundamentally rethink how they source, procure, and manage equipment.

At The HFA Show 2026 in San Diego on March 16, two veteran executives with deep supply-chain expertise—Alex Albert, vice president of supply chain and procurement at Xponential Fitness, and Matt Delaney, director of equipment and program innovation at Equinox—broke down what’s driving the current supply-chain disruptions and how fitness facilities of any size can manage costs. The discussion was moderated by HFA Chief of Staff Mike Goscinski, who spoke about HFA’s advocacy work with Congressional representatives and Trump administration officials in addressing tariffs that affect the industry.

Be Responsive, Not Reactive

The shift in how operators think about supply chains is fundamental, not cosmetic. Albert calls it learning to be responsive instead of reactive. Xponential Fitness has invested in a centralized supply-chain and procurement operation with three pillars: resilience, speed, and strategic partnerships.

“We’re leveraging good planning to try [to] navigate as much risk as possible,” he said.

Delaney echoed the resilience theme from Equinox’s perspective.

“Uncertainty is very challenging,” he said. “We like to forecast our business out in three-to-five-year segments—capital movements and that sort of thing. When things are changing from month to month, it just becomes harder to understand what cash flow is going to look like.”

Delaney stressed that brand integrity will never be sacrificed, no matter what the financials say.

“We will never sacrifice the experience for the cost. There are limits to how much we will try to mitigate that.”

Why Supplier Partnerships Are Essential

Both panelists were emphatic that relationships with supplier partners make all the difference. These connections may be the most important way to mitigate costs from supply-chain disruptions.

Albert distinguished between vendor relationships driven by price competition and strategic partnerships tied to brand identity and programming.

“There’s brand affinity that makes Xponential unique,” he said. “Those types of partnerships require finding ways to work more collaboratively to reduce tariff impacts.”

Delaney emphasized access and transparency as the hallmarks of a genuine partnership.

“Any one of our vendors, I can pick up the phone and call 10 people in the company,” he said. “If there’s a problem and that’s the only time you’re talking, that’s not really a partnership—that’s more of just a vendor deal.”

He noted that Equinox was having tariff-preparedness conversations with suppliers even before the current increases hit.

“Transparency is very helpful. Being able to prepare for something before it actually happens makes a significant difference,” Delaney said.

This is especially true with tariffs, which are hitting the fitness industry hard across multiple fronts. Albert identified three challenges: the tariffs themselves, the costs suppliers are incurring as they re-engineer their own supply chains—shifting manufacturing to Vietnam, Mexico, or other sourcing locations, for instance—and rising logistics costs.

“Now, more than ever, folks are realizing that our world is so interconnected,” he said. “When one route stops, the whole economic system functions differently.”

Delaney raised a pointed issue about how tariff costs are being passed down the chain. When a supplier prices in tariff exposure on electronic components that a buyer like Equinox doesn’t actually use in the equipment it purchases, the operator ends up absorbing costs that aren’t relevant to them. Again, the quality of the relationship with partners can make all the difference.

“Working with our partners and having very direct conversations about where you’re sourcing your materials, what components you can get from other places—that was very beneficial,” Delaney said. “We learned a lot about each other’s businesses, and it ultimately made all of our organizations stronger.”

“Now, more than ever, folks are realizing that our world is so interconnected. When one route stops, the whole economic system functions differently.” • Alex Albert

Data-Driven Equipment Decisions

Delaney said Equinox takes a data-intensive approach to updating equipment.

“Everything’s connected. I can look at the age of [the equipment], how many miles we’ve run, how many service tickets are on it, so we can be a little more targeted, a little more methodical about how we’re replacing pieces.”

Even so, he cautioned against extending replacement timelines too far.

“There’s a big difference between a five-year replacement cycle and a seven-year replacement cycle in terms of what a piece of equipment will look like—different hardware, different screens.”

According to Delaney, you can also save money by understanding product life cycles.

“If a manufacturer changes the footprint of a treadmill every seven to 10 years, they might have two or three console swaps in between. Four years in, your consoles might start to look a little dated, but the treadmills are still working fine,” he said. “There may be the ability just to swap out a console, where you spend $1,500 instead of $7,000 on a treadmill.”

When asked what smaller operators can do to future-proof their procurement, both panelists returned to careful planning as the solution.

“Understand what the next three to five years could look like in terms of replacements and new builds,” Delaney explained. “Build in some elasticity and a little bit of cushion. Things have changed—and they’re going to continue to change. You can’t have everything set in stone.”

Albert pointed to the operational infrastructure behind good planning as equally important.

“You could be a $30 million company and just decide that you’re going to have a review process to understand how all the pieces fit together,” he said. “When your process is episodic, you move from being responsive to [being] reactive. You want to stay in that more responsive state.”

Current disruptions have proven just how important upgrading and updating equipment is to brand integrity.

“Equipment went from being something we have to a full part of the experience,” Delaney said. “It’s something that’s critically important to a health club—to have equipment that’s well laid out and functioning well. That was a good driver for me.”

Health & Fitness Business is a publication of

Health & Fitness Business (HFB) is the leading health and fitness industry publication. Published monthly by the Health & Fitness Association (HFA) and distributed free to the industry, HFB offers analysis of the opportunities, challenges, issues, and news that impact the industry.

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