![This is Matt Reustle, and today we’re breaking down Europe’s leading low-cost gym operator, Basic-Fit. We cover the history of the fitness industry, how Basic-Fit has put its own spin on a successful US-based playbook, and the clustering strategy that Basic-Fit has developed for entering new markets.<br /> <br />Our guest is Jonathan Abenaim from Arlen House Capital, an investor in Basic-Fit. For the full show notes, transcript, and links to the best content to learn more, check out the episode page here: https://www.joincolossus.com/episodes/92990535/abenaim-basic-fit-increasing-returns-to-scale<br /> <br /> -----<br /> <br /> This episode is brought to you by Visible Alpha. The team at Visible Alpha built a platform to analyze consensus data and financial metrics on over 6,000 public traded companies. Rather than having to dig through models one by one, Visible Alpha extracts data from every line item across sell-side models so you can better understand expectations on metrics beyond just revenue and earnings. Try Visible Alpha for free by visiting visiblealpha.com/breakdowns<br /> <br /> -----<br /> <br /> This episode is brought to you by Quartr. With Quartr, you can access conference calls, investor presentations, transcripts, and earnings reports – straight from your pocket. Quartr is 100% free and includes companies from 12 markets including the US, the UK, Canada, India, and all the Scandanavian countries. Quartr is available for both iOS and Android, so check out the app today.<br /> <br /> -----<br /> <br /> Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.<br /> <br /> Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.<br /> <br /> Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss<br /> <br /> Show Notes<br /> [00:00:00] - Introduction <br /> [00:02:47] - [First question] - What it’s like to walk into a Basic-Fit gym<br /> [00:03:50] - Their footprint today in terms of geography, members and locations <br /> [00:04:41] - The history of gyms in the US and differences between them and European ones<br /> [00:08:33] - Why US gym models lack influence and penetration in Europe<br /> [00:10:58] - The key insight that led to founding Basic-Fit <br /> [00:13:40] - Economics of building and operating a gym in general and for Basic-Fit<br /> [00:16:47] - Typical churn for more established locations and their member demographic<br /> [00:20:33] - When Basic-Fit breaks even on a membership and how they battle churn<br /> [00:23:28] - Their cancellation policy and why they don’t leave for typical reasons<br /> [00:25:10] - Basic-Fit’s fortressing strategy and clustering philosophy<br /> [00:28:51] - Whether or not there’s data to support members using multiple gyms <br /> [00:33:11] - The competitive landscape and whether other gyms adopt Basic-Fit’s strategy<br /> [00:35:21] - What drives country localizations for a particular gym chain<br /> [00:38:22] - Basic-Fit’s digital offering and at-home disruption from US brands <br /> [00:42:31] - How they navigated the pandemic and if there’s any lasting changes<br /> [00:44:31] - The biggest threats to Basic-Fit over the next five years<br /> [00:46:23] - Major takeaways from studying Basic-Fit’s story<br /><br />#businessbreakdowns #basicfit #podcasts](https://media.thebusinessprofessor.com/wp-content/plugins/youtube-feed-pro/img/placeholder.png)
This is Matt Reustle, and today we’re breaking down Europe’s leading low-cost gym operator, Basic-Fit. We cover the history of the fitness industry, how Basic-Fit has put its own spin on a successful US-based playbook, and the clustering strategy that Basic-Fit has developed for entering new markets.
Our guest is Jonathan Abenaim from Arlen House Capital, an investor in Basic-Fit.
Show Notes
[00:00:00] – Introduction
[00:02:47] – [First question] – What it’s like to walk into a Basic-Fit gym
[00:03:50] – Their footprint today in terms of geography, members and locations
[00:04:41] – The history of gyms in the US and differences between them and European ones
[00:08:33] – Why US gym models lack influence and penetration in Europe
[00:10:58] – The key insight that led to founding Basic-Fit
[00:13:40] – Economics of building and operating a gym in general and for Basic-Fit
[00:16:47] – Typical churn for more established locations and their member demographic
[00:20:33] – When Basic-Fit breaks even on a membership and how they battle churn
[00:23:28] – Their cancellation policy and why they don’t leave for typical reasons
[00:25:10] – Basic-Fit’s fortressing strategy and clustering philosophy
[00:28:51] – Whether or not there’s data to support members using multiple gyms
[00:33:11] – The competitive landscape and whether other gyms adopt Basic-Fit’s strategy
[00:35:21] – What drives country localizations for a particular gym chain
[00:38:22] – Basic-Fit’s digital offering and at-home disruption from US brands
[00:42:31] – How they navigated the pandemic and if there’s any lasting changes
[00:44:31] – The biggest threats to Basic-Fit over the next five years
[00:46:23] – Major takeaways from studying Basic-Fit’s story