Episode #530: Future of Crunch-CR Fitness Expansion, Innovative Offerings, and Operational Strategy

0:00 I am super excited to announce that we now have a formal partnership with The Prospect Wizard. And when I say wizard, I mean wizard. Obviously, you have a website. This allows you to convert your website traffic visitors directly into leads. It's not just another chatbot, and it's not AI, but it allows a visitor to call, text, or leave a voice mail. Immediately goes to you, your sales team, or anyone else in the club instantly. MIT shows a study that if you contact the lead within 10 minutes, chance of them converting goes up 9 times that of the average. We got the Atlanta Clubs on it, VIDA Fitness, Gold's Gym, Mountainside, City Fitness Philly, College Park. Become one of the next halo companies to deploy the wizard. It's easy to use. Go to the prospectwizard.com.

0:52 Get a free 30 day trial. Talk to my boy, Dave Gallon. He will get you all set up and let the leads flow based on the wizard. Go get them. This is Pete Moore on Halo Talks NYC. I have the pleasure of bringing a fast growing area developer in the Crunch brand, which is near and dear to my heart. We've got part of the management team here. We're gonna do a 20, 25 minute conversation and panel on how to build an area developer, how to hire the right people, and, why, people resonate, to and congregate towards the crunch brand, no judgments, and results. So Peter, COO, Peter Constantino, kick it off for us here, and then we'll, introduce the rest of the team. And I wanna thank everybody for coming on. Thank you for having us, first of all. I really, really appreciate it. We were excited to jump on the call today and really just kinda share a little bit about ourselves. I mean, you know a good amount about the Crunch brand. You know, probably a good amount about our franchisee as well. You know, we're one of the fastest growing franchisees within the Crunch brand, sitting at 70 locations, finishing up this year around 75 locations if all falls into place. Next year, looking at another 12 to 15 to that, I think. You know, one of the things that makes us exciting is the energy of the brand, right? Who we are, you know, what our culture stands for. But more importantly, really, I think you'll get the feeling of it throughout this call is everybody that's on this call. You know, everybody that's on here is extremely passionate about fitness. All of us grew up in fitness, really the only thing we knew. And we really take that to work

2:25 every day with our team members and make sure that they're excited so that they can make the members excited. So I think it it it'll resonate to you throughout the call. Great. And then, Jackie, you wanna go next? Hey. I'm Jackie. I am on our new club development team, have been with CR over 10 years. Super excited to be here and to be part of this opportunity and absolutely love the fitness field. It's been a huge part of my life from the beginning and excited to share lots of information and details with you guys today. Great. Derek? Yeah. My name is Derek Truce, vice president of personal training for CR Fitness. Coming up on 8 years, with the organization. And I think just, you know, what's good to know before we start is that, you know, we're an organization that prioritizes people, and that's really what separated us at the end of the day that, we generally wanna invest back into our people. And so I think you'll you'll find the theme on this call pretty quickly that we've all been here for quite a while.

3:24 I think in fitness, turnover is incredibly high, typically. Right? And the reality is all of us has been here for a while, and it'll continue to be the case as we continue to scale as having people that are on this journey for a long time is gonna be separate something that separates us from from maybe some of our competitors. Yeah. And, before we go to a lease, I I used to live in Manhattan Beach, California, and there was a Mexican restaurant called Pancho's on the corner. And every one of the waiters and waitresses and bartenders that work there would have their name tag, and it would say how many years they've been there. And everyone was over 20 years. So you know that nobody works there and then looks to update their resume or LinkedIn. Like, they're that's a family business, and, you know, they hire and and stay. So, they I love that idea too. Alisa, fire away. Yeah. Hey there. My name is Alyssa Diquino. I'm the VP of Group Fitness.

4:14 I've been with CR Fitness for 8 years now. Actually, Derek and I started very, very simply around this but my passion is obviously group fitness style classes. I grew up dancing my voluntary life, so it's just such a natural thing to start teaching classes. And what I love about crunch is the opportunity, and that's my biggest mission is giving back the opportunity that I was given to my instructors, to everyone else, our employees, and having the ability to really build a career in fitness that most probably wouldn't see as possible before. Great. And Julian just joined us as well. Hey there, guys. So just going over, how we got started in the industry? Yeah. You have to be here for more than 8 years. You have to drop. So, so I, I've been in the industry since I was 14 years old. Started working at Lifetime Fitness when I was 14, and then, started working at Crunch when I was 21 and been here for the last 10 years. Started out, yeah, down in Tampa, Florida.

5:14 Great. So we know, Jeff Dyer and, and know North Castle well from the from the beginning, of the original investment. And, obviously, he came from Lifestyle Family Fitness, back back in the day. So, Peter, what brought you to the to the company and, you know, being the COO of a, you know, a 10 club chain is a lot different than being the COO of a 75 club chain. So maybe talk about how your your opportunities, challenges, and how you've kind of flexed who you are. Yeah. Absolutely. I had the pleasure of working with Jeff over at LifeStyle Family Fitness. So I was with LifeStyle for 12 years, actually. You know, I started with them, moved down from New York, from Manhattan. Started with them and they were 7 locations, stayed with them all the way through the 52 locations through the sale to LA Fitness and Lifetime and all those pieces.

6:05 And I think growing through that we saw, you got to experience a lot of the growing pains that you deal with, right? When you first start, we were all local, you could get to every club in a week. All of a sudden you're at 52 locations. It's more difficult to get to every club. It's there in other markets and you start learning that you really have to hone in on who your brand truly is as you get into all the markets. It was easy to tell people the story of lifestyle when you're in Florida because everyone knew you. All of a sudden you get into these outside markets and it becomes difficult. And I think experiencing that with Jeff, who was a huge mentor of mine, experiencing that with him, had an opportunity to work with Tony over at Lifestyle Family Fitness. And then one of my huge mentor of mine, Kevin LaFerriere, is actually the one that brought me over to Crunch Fitness. He was with Crunch at the time, gave me a call and gave me an opportunity to walk in and build the PT team however I wanted.

6:54 He was like, look, you know, at Lifestyle, you came in as we had already started to build things. You were able to take it to a new level. But here at Crunch, it's yours. It's an open book, build it the way you want to build it. There's exciting things going on. And sure enough, got that opportunity. They trusted me enough to take the PT team. Higher on Derek Drews, he came in 2 months, I think it was after I started. And the 2 of us built, built the PT team. You know, as Derek said, first thing we looked at was how do we build it around our team members? How do we build it around the members themselves to make sure that they're happy first and let all the numbers and everything take care of themselves on the back end? So I think, again, going through the growing pains with Lifestyle, I was with Ufit sometime through their expansion and got to see a lot of the mistakes that we made, shortcomings that we had in terms of the vision that we had or understanding what was coming next. I was able to put a lot of that into play when we came to Crunch. Not to say that, that we didn't hit a lot of our own bumps in the road as we went along.

7:53 But as you go, I mean, the important things is we've kept a team from a home team, right? We grow from within. So everyone understands who we are, understands what we're about. And I think that makes it very easy for us or easier for us to be able to pivot when we need to. You know, I think a lot of the bigger companies that I've seen or even been a part of, you start bringing people in from the outside that don't truly understand who you are. And when it's time to make a change or change on a dime and pivot, when you start to learn some of the mistakes you're making, it becomes very difficult. But with us, because everyone on this call is homegrown, You know, you have a conversation with Jackie or Julian or Derek or Alyssa and say, hey, here's what we've seen. Here's some of the opportunities we have. Here's what we see this coming down the road. Here's some of the changes we need to make. And it's made within a day or 2, we change and do what we need to do. So, you know, it's been an exciting run. I think there's a lot for us to learn now that we started taking on some of these outside markets. It's funny, Julien and I were talking about it this morning as we were touring clubs together.

8:51 Look at some of the outside markets and there's just differences in seasonalities and people's personalities and when people are excited about being in in the gyms. And you have to be able to adapt to that quickly and understand it and recognize it quickly. And I think we've done an amazing job with this team of being able to do that. So Great. So, Jackie, as you look at new club development and, you know, we've done a lot of work with Crunch and area developers. You know, there's a a Crunch 1 point o, a 2 point o, a 3 point o. There's, you know, rising construction costs. There's, you know, not not can't necessarily take the membership pricing up because, you know, this is the model and that model needs to to be nationwide. So when you look at new opportunities, do you look at them and say, hey. I wanna convince myself to do a new new location or convince me you know, I wanna say no, but, like, convince me to say yes. Or how have you kind of recalibrated how you think about opportunities? I absolutely love all the opportunities that we have. I love going into new markets. Currently, we are developing obviously in Florida. We just started Tennessee. We have some clubs in Texas. We have North Carolina. We have Georgia. And I think with every new market you go into, there's a certain level of excitement to bring what Crunch has. When I started with Crunch, we had 2 locations. I remember walking into places in Carolwood in Tampa, Florida and be like, yeah. I'm from Crunch. People would be like, what is Crunch? Like, they had no idea. Right. And it has become really exciting to be part of a brand now that when you come into a market, people know, and they're so excited that we are

10:23 coming to the market. And then for markets such as Tennessee or Texas when we first started out there, the challenges that you embrace being able to develop not only the community to know who we are but to develop the teams to who we are. I remember when we started our 1st club in South Florida, we road tripped our furthest south club all the way to Kissimmee to let them feel what crunch it is because you can explain it, but until you walk into a location and you hear the music and you get the high fives and you get that excitement of Alyssa with a group fitness class, they couldn't experience that. And when they finally feel that vibe, it's part of our biggest onboarding with new club development.

11:04 You can't work a day in the field until you've come in and taken a workout, you've done a tour, and you've been part of us. And I think that's a huge part of the excitement that as we go into new clubs and new markets, I get to be a huge part of that opportunity. This is Pete Moore. I wanna let you in on a little secret. There's this company called Promotion Vault, and what they do is they give out rewards from retailers that allow you to incentivize your members without having to do 0 down and 1 month free or giving away shakes or giving away t shirts. What you wanna do is build a rewards program that lasts, that people value, and that doesn't discount your own products and services.

11:47 So here's the deal. There's something called rewards vault. The rewards vault is going to allow a member to set up their own profile. They are going to answer questions. You are gonna get those answers. You're gonna be able to target those members, and you're gonna reward them inside your club, inside your spa, and outside of the club and outside of the spa to get them to become loyal, to get them to pay their monthly dues, and to be rewarded properly for the actions. A lot of companies are cutting back on rewards. You shouldn't be. Promotion Vault's your answer. Trust me. This is real. And and, listen, over to you on the group exercise. Obviously, there's been a lot of studio growth. You know, when Crunch started back with Doug LaVine back in New York, it it basically was just group exercise, you know, with a punch card. And, obviously, group programming and maybe, you know, an edgier side to group programming was always, you know, kind of the the DNA of Crunch. So one question is, what type of people are you recruiting for that? Are they instructors? Are they, you know, actors or entertainers? And and, like, you're you're kinda, you know, turning them into fitness instructors, because they have a personality. Or are you looking for people that have mastered some certification or trade or been from another club that that you're recruiting basically also probably bringing members with them?

13:10 Yeah. That's a great question. It's actually a little bit of both. Right? I will tell you my favorite applicant sometimes is just coming from our member base because they tend to just love crunch. So if they're taking classes, they're in the classes, we can tell that they have the personality and love for it. We can give them all the tools and the tricks on, like, getting certified and becoming that great crunch instructor. The biggest thing I look for is personality. They have to have a fun, vibrant, energy because a lot of the time classes is entertainment. Right? A lot of people coming to classes, they're coming there because they need motivation. They need someone to tell them what to do. They might be dreading going to the gym, but it's the 45 minutes, 3 minutes hour with us that makes their day. So you have to provide that entertainment factor. So, yeah, dancers tend to have that that it factor that we look for. But also having those really skilled educated instructors are great too. It's just, it always comes down to their personality where we find that they're a great fit here because we we wanna be edgy. We wanna be that outside of the box type of brand. It's not gonna be very, very robotic. I always tell my instructors, I never want you to become a Crunch Robot. I want you to be you, but with our Crunch branding and our guided classes that we create.

14:22 So all comes down to their personality because I can't teach that. I can teach everything else. Right. So we worked on a deal once, recently where, a club a Crunch franchise, area developer was buying in another club chain in the same market. And, turned out 50% of the employees that worked in personal training and group x worked at both locations and were basically, like, filling their calendar. So as you're at 75 clubs now and you kinda militarily or, like, tactically moving, do you now have the ability to have group instructors that have a full time job and that are that are going to each one of the clubs, or do you still kinda keep it as 1099 to maybe a little bit Peter, if you want to start? Actually, all of our instructors are w 4, w 2. So they all work for us.

15:09 They have the ability to go teach it anywhere else. But what's great about us, especially when we start opening a lot of different locations within the same area, they tend to just fall towards crunch because instead of working for all these different gyms, they get the ability to teach at multiple locations. So they have that change from, gym to gym every day or every other, like, basically morning and night even, within our member base. So they have, like, such a cool opportunity of finding different people, but within our Crunch brand, which also makes it easier for them too because they're only learning one formatting. It's not going to another gym and learning their formatting. And then to the opportunity that we bring of you can teach a lot of different stuff from fitness to boxing to HitZone, Hot Studio, or we have Hot Yoga and Hot Fitness. Like, they really get to add to their repertoire of what they get to teach through us. And do you find that that's also easier to to recruit the best people because you're actually offering them benefits and health insurance and not just, you know, hey, here's a 10.99. You know, good luck. But you're you're you're not really part of the team versus, hey, you know, we're we're here to to grow with you, and we can actually offer you these benefits that on your own might be cost prohibitive. Yeah. Definitely. I mean, they're they're always so psyched for the growth. They wanna be a part of it.

16:27 Most of these instructors wanna be a part of a family. You kinda hit home with that. Also being a part of a team instead of being 1 on 1, it's all about like the community vibe. So doing that on your own and building community is tough. But when you get our vehicle of CR fitness and crunch fitness and have the ability to grow the community, not in just 1 gym, but multiple locations within our area, it's so, cool. So they definitely love that that we've Gotcha. Derek, over to you on the personal training side. A couple of questions. One is there were questions originally when the HVLP 1.02.0 came out that the community and the members that you're gonna bring maybe don't have as much disposable income to actually spend on personal training. So some people said, hey, that's that's a good idea, but probably not the right population to to feed into.

17:18 How have you seen that kinda contradict what people thought and also the benefit of having PT on a recurring basis and what kind of results you're seeing? Yeah. That's what I thought. You up for that right now. Yeah. Yeah. No. I think, to be honest, that was part of the challenge that Pete and I liked when we got here. I remember some of the conversations early on where some of our clubs weren't necessarily in the best demographic areas, for example. Right? And the first club that I got to be a part of when we got here was still today probably our lowest demographic club, and it's a club that's done, you know, well over $200,000 a month in PT multiple times. Wow. And so I think when we got here, Pete and I knew, we knew sales.

17:59 We understand sales. We're great at sales. But if we made it about sales, we're probably gonna struggle in in this type of, demographic that some of our clubs are in in the high value, low cost operation. Right? And so it was about creating a product that was so valuable that it outweighed the cost and people wanted to make the investment. And so it was about creating a sales process that our people believed in and that didn't come off salesy. And so that was our goal from the very beginning was, let's develop our people at the highest level in the industry. Let's onboard them unlike anywhere else. Let's give them a value proposition that's so strong. The members will find the money because they believe in the product versus trying to find a bunch of skilled salespeople that were slick and could, you know, maybe sell a training, but then, you know, that that member declines next month because of some of the demographics you're speaking to.

18:46 Right? So our approach had to be different. And so when we got here, it was never about revenue. It was about finding people that believed what we believed. It was about finding people that wanted to genuinely care for someone. Because if you're cared about and you find Crunch as maybe the highlight of your day, you're going to find the disposable income because it's the most valuable thing in your life. And so that was our focus early on, and it's led to, you know, us becoming a a top PD department in the industry. That's amazing. Julian, over to you. You know, Lifetime, you're running like a big box. You're running like a family, you know, environment. You're trying to get revenue, you know, per family. Maybe it's like you're one of the KPIs. So as you kind of, like, brought into Crunch, how how did you kinda change your perspective on, like, what am I doing here? How do I, you know, what how do I how do I con what constitutes a win? Yeah. Well, I I I actually think that it it was a really good transition because I think that there were a lot of things that I brought from lifetime that ended up impacting me in a big way in the HVLP sector because, obviously, in HVLP, it's volume. And like you said, lifetime, it's much more about getting a smaller amount of people paying a lot more money. And in HVLP, it's kind of the exact opposite. And so one thing that I was kind of ingrained with at lifetime was that very customer service, that customer centric approach that a lot of times you don't see in HVLP. You see that it's very much, you know, it's it's just about churn and burn, churn and burn. And I brought in, a lot of those elements

20:18 that, you know, you would find in a lifetime where it's all about the highs and the buys and the relationships and learning every single member's name, and that actually helped accelerate me into, being good in sales. And as we know in the fitness industry, numbers get you noticed and, you know, that that allowed me to move into management pretty quickly and then kinda be able to engrain my team with that same mentality where it's service first rather than sales first. And then, you know, focusing on service only helps sales kinda to resonate in a way of what, you know, Derek exactly just said. So it was, it was a pretty smooth transition, and in a lot of ways, that hospitality focus is what set me up for a lot of success, here at Crunch. That's good to hear. Yeah. We work with, we're investors in a company called Promotion Vault. I think you use them for member referrals and and and some, you know, incentive programs. Yeah. I I said this, this quote the other day. I wanna get, you know, Peter, maybe your reaction. About a year ago, I said, you know, I was at a tech conference. You can't have artificial intelligence until you have intelligence.

21:20 And just to say, like, hey, to your point, Julian, I used to go to summer camp with by by the time you end the 1st week, you know, 600 people's names. Right? So it's not difficult to do. And I feel like some people that are in the HVLP 1.0, 2.0, 3.0 say, there's so many people, so much volume. Like, I can't personalize it. And I kinda call bullshit on that because this is a relationship, and you're paying me money. And we have a relationship. It's not, you know, $30 a month. It's 360 plus. You know? And so so, Peter, your reaction Yeah. Or, like, how you're actually saying, like, hey. I can't I had I can't get data. Like, I'm not I'm not hindered by my business model of HVLP to make me not do things that I wanna do or can do. Okay. What what kind of happened with Derek and Julian said, I don't think any of us on here walked into Crunch thinking it was an HVLP. What I mean by that is we didn't walk in with that mindset or that mentality. We walked into it as just another gym. There's equipment in there, there's a roof over our head, there's members standing in here, treat them the way you would have treated them at Lifetime or Lifestyle or Youfit or whatever company you were with, and you're gonna win. And, you know, it's funny, we attacked it differently. Exactly like you said, we will I'm very old school in a lot of the things that I'll do. The same quizzes that I used to do with trainers back in the day I do today, you walk in and say, go out there and tell me 5 people that you know, do you know their names? Do you know their phone numbers? Do you know their birth dates? Do you know their kids? Do you know something about them? Right.

22:46 Not making it about going out there and finding a prospect or a client, but go out there and become the mayor of the gym. Make sure everybody knows your name. Everybody, you know, everybody else's name so that people feel like when they walk in, they're coming home, right? They're coming to a family. And I think when you treat it that way, when you create an environment like that, I don't think people that are paying $10 are people paying 100 I think people walk in the door and if they feel at home and they feel trusted and they feel heard, they find value in what you're doing and they find a way to become a part of it. And I think that's how all of us have attacked it. We've always looked at it as this isn't a $10 model. This is whatever we make it. This is whatever environment that we create. And I think that's what's been great about all of us is we've all come from models that, you know, charge a higher price point. You've been into that type of level, and we walked into Crunchko and we can create that same environment here. Let's just attack it that way. Nice. And then, Alyssa, from the group exercise side of it, you know, how do you think about membership and and, you know, how many people are using it? And then, Derek, if you kinda comment on, are you kind of toggling people between, hey. I want you to do 3 days of group exercise, and you're gonna do a couple days of personal training. I feel like that model makes sense, but not necessarily has been, like, implemented successfully in a lot of places I've seen. So, Alyssa, I'll start start with you on group action. Maybe prescriptive group acts. Yeah. So we do a really great job of creating a experienced tour process. I mean, that's all Julien, and really

24:19 getting the nuts and bolts of what the member wants out of a gym. And then from there, we can cater classes based off of, like, what their need is. Right? So if someone's coming in and they need cardio, then we have thousands of cardio classes that we can, quote, unquote, prescribe to them, vice versa. We always wanna see, like, what they might need that they don't know that they're gonna need. I think that's something that's great about Crunch is we offer so much that they might have never known that they needed hot yoga, but they go and step in a hot yoga class and, like, whack. Like, I feel 10 times better after I take that same class. Membership wise, at the end of the day, we gotta sell the memberships, and then we'll get them into those classes based off of just also to the excitement. But starting with that tour process and really being able to build value based on what we offer for such a low price because you're not gonna find that anywhere else. As you mentioned, the studios that we compete with, like, they offer amazing classes, but you you pay for it. So we really challenge to provide that same type of value for the cost that we have, and it's just unmatched for our members, giving them that true accessibility through our membership that they don't get anywhere else.

25:28 And, Julian, you wanna I think we we we dropped, Derek here. You wanna just comment on, like, bringing somebody through different programming inside the club, and and how does that actually get executed? Yeah. From, I mean, if we're talking about it, I think that the member experience is a reflection of the team member experience. And so, you know, making sure that you're always going back to a systematic and structured onboarding process where, you know, people aren't just getting thrown into the mix. They're experiencing your product and turning them into raving fans. I think that, you know, to add on actually to a point, just a little off topic on it, but still along the same line. You You know, one of the things that Alyssa brought up earlier is we love hiring people that, are members. Because a lot of the times, they're fans of the product, but, can they already know it themselves? But really just making sure that your onboarding process is really forcing your team to experience your product, fall in love with the group fitness programming, fall in love with, you know, the the the process of PT and, you know, incentivizing people to get involved in personal training and group fitness is something that's huge. Because if we're all, you know, using the products ourselves, we're obviously gonna have a firsthand experience to where we're gonna wanna share it with other people. You know?

26:45 So and in in sales, we all know the excitement's caught, not taught. So making them excited about it is is key, and that begins with onboarding. You know, Pete, to to speak to the PT side for for a second because I know Derek had some, difficulties. He just fell off, unfortunately. One of the things that we built into the program early on for PT was that within our presentation, Group X was a part of it. What I mean by that is it wasn't your program design is just meeting with a trainer. Your program design is, here's your sessions with the trainer. Here's your sessions on your own. And oh, by the way, here's how we're going to fill in those gaps of cardio or flexibility or mobility or whatever it is, utilizing Group X. You know, we we knew it was important early on. You know, somebody gets involved in group x, they're staying longer than your average member. Right? So we we know it's important for us to get them involved, and we make sure that we plug them in as many places as possible.

27:33 This is Pete Moore. Here's the last tip for you of the podcast. We are partnered up with a company called Higher Dose. Higherdose.com. They are the leader in workout recovery products, infrared technology, LED light masks, neck enhancers, and other products such as PMF mats and sauna blankets. If you have not gotten on the workout recovery train yet, your time and your stop is now. You gotta get these products in there before these workout recovery and spas end up saturating your market, having your members walk out of the club and going into one of their locations for $200 per month where they're paying 39 to you. Let's become an expert in workout recovery if we are already an authority in workouts. Higher dose, check it out. There's a wholesale code, and we look forward to helping you augment your products and services to meet the demands of your members. And, hey, let's get people happy, healthy, and sweating, and the recovery should be just as good as the workout.

28:43 One of the benefits of having a franchise or franchisee relationship is they'll give you the blueprint of here here's what we want on the equipment side. Here's what we want on the on the layout. Here's the site selection with Bucks did and all those nice, you know, reports. What are some of the things that maybe you've had, like, an moment on or said, like, hey. This is, like, Crunch specific or hey. We're doing a couple things here that maybe is behind the curtain, but it actually, like, is really beneficial because we have someone that wakes up every day and is trying to get the franchisees to be more successful. I think being part of new club, I've I've watched the whole evolution, as you said, from 1 to 2 to 3.

29:25 And right now, we're getting ready to launch our East Plano location, which is going to be the first 3 point o, in the country, and it is incredible watching how we have evolved from day 1. Like, I look at our offerings. I remember when we first got Hammer Strength, we were so excited to get Hammer Strength at CP. That was a huge thing that Tony wanted to get. I look at we didn't have a relax and recover when I started. I remember my office at Carolwood disappeared and turned into the hydromassage room, and that was not hydromassage. It's compression massage. It's cryoloungers. It's level 2 stand up tanning beds. And then when you look at the evolution of our studios, we went from having a standard group fitness studio to now having cycle classes, not just hot, we have the hot stuff studio, which has a ton of offerings, hit and boxing. And so for me, it's super exciting because all of a sudden, the evolution of what we offer, when I'm out in the field marketing and I go up to somebody and, you know, we're a entry level price gym, but the offerings that we have when I have a conversation with somebody, I'll jokingly say, hey. All the money you're gonna save, you can take me out for lunch because they're saving a ton of money. If you compare people that are going to different studios and, you know, they have all these different separate memberships, and then all of a sudden, they come to Crunch, and it doesn't matter if you're deconditioned and you're afraid to come to the gym. It's okay. Start with the relax and recover. If you're somebody that's super hardcore, we've got tons of squat racks. If you're somebody that, whatever you want,

30:56 we have something for everybody. And I think that is what has really made us successful because we appeal to everybody. One of my favorite questions I get is, who's your customer? And I always chuckle when people ask me that because I'm saying, it's everybody. There's not one person that we appeal to. It doesn't matter your age. It doesn't matter your demographic. We will work in one way or another for everyone. Yeah. Great. So, so, Peter, in in closing here, you know, for for the audience, there's probably 8 private equity groups now that are that are invested in Crunch Area developers. That number is gonna probably continue to rise. A lot of the the private equity investors that missed the wave of Planet and missed the wave of Arch Theory, I I think are now getting in on Crunch as saying, like, okay. I'm not missing this one.

31:41 So maybe how do you see, you know, the the brand trending? How excited are you about the next several years? And, you know, where do you think the biggest opportunity is? And I appreciate everybody coming on. Yeah. Absolutely. I think, for us, as I said, 12 to 15 locations each year, I think the brand as a whole, you'll start to see everybody start to speed up. We've made some some changes in the corporate office. You know, Shaquan came on with this, I think with a new new mindset, some new ideas that are really going to push us. You know, we brought people in to start looking at franchising just outside of the US and start look and changing the industry that way or changing our part of the industry that way. I think when you look at us, the biggest opportunity is how that we start to connect with medical groups, with insurance companies, be able to offer people that, you know, that gap, right? You finish with your physical therapy, there's a gap between that and when you get into the fitness industry and nobody's really tapped into it correctly. Everyone's tried, everyone's finds ways to get members in the door and do that. But I don't think anybody's correctly looked at and said, okay, I'm going to be able to take you from A to Z. And I think anyone who does that, whether it be Crunch or anyone that's out there, finds that that space and how to really tap into it correctly and work with the insurance companies. I think they're the ones that are going to really jump off and crunch. You know, we're positioned and poised the right way to be able to do that. You know, CR fitness in general, you look at our PT team, we're industry leaders in that way. And we're constantly looking at how we can tap into it. So I think we'll be one,

33:14 I'm gonna be boastful here and say, I believe we'll be one of the first that's gonna be able to do it, and I'm excited to see where it goes. That's great. Derek, you wanna tap in there for a second? Or you just jumped in and closer. You you didn't get to speak. Yeah. Sorry, guys. We're we're doing a test pilot pilot here right now, and so they're messing with the Internet. So I lost Internet. No problem. I I think that echoes Pete Pete's point. I think, you know, a lot of times, you see companies in the industry right now that were strong players that are now starting to struggle. And I think a lot of that is because of their inability to adapt. And I think for us, you know, one of the things that Tony, our CEO, says all the time is we have to be risk takers. And I think SCR, specifically, we're willing to take risks. We have to. Our members deserve that. And so I think that's one of the things you'll see from the Crunch brand in general over the next couple years is we're gonna take some risks.

34:01 We're gonna throw some things out there that other groups haven't been willing to do, and something's going to stick. And whatever it is that sticks is gonna allow us to be innovative and, I think, set the tone for the rest of the industry. And I'm so I'm excited to see what that is. Alright. So CR Fitness is now Crunch Risk Fitness, and we certainly resolve to that. So that. I like that. I like that. I'll take that. And, yeah. Look, you know, having you guys as as thought leaders and action leaders in the industry and in in a in a franchise, really, I think is important because it does raise the bar of what other people should be doing and and then sharing those best practices. I've seen that out of your group into other groups that I work with. And, please, give my regards to your your, your your crew there that I've known for many years with Lifetime Family Fitness. I think I used to run your website back in 2000 back in the day. So so things have come a come a long way. But, you know, focusing on employees first and actually building the foundation. I mean, it's hard to it's hard to not make the playoffs every year if you have a great team. So congrats on what you guys have built. And thanks for coming on Halo Talks and, you know, changing millions of people's lives. Thank you, Rick. Awesome.