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

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I am super excited to announce that we now have a formal

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partnership with The Prospect Wizard. And when I say

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wizard, I mean wizard. Obviously, you have a website.

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This allows you to convert your website traffic visitors

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directly into leads. It's not just another chatbot, and it's

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not AI, but it allows a visitor to call, text, or leave a

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voice mail. Immediately goes to you, your sales team, or anyone else in the

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club instantly. MIT shows a study that if you contact

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the lead within 10 minutes, chance of them converting goes up 9

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times that of the average. We got the Atlanta Clubs on

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it, VIDA Fitness, Gold's Gym, Mountainside,

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City Fitness Philly, College Park. Become one

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of the next halo companies to deploy the wizard. It's

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easy to use. Go to the prospectwizard.com.

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Get a free 30 day trial. Talk to my boy, Dave Gallon. He will get

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you all set up and let the leads flow based on

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the wizard. Go get them.

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This is Pete Moore on Halo Talks NYC. I have the pleasure of

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bringing a fast growing area developer in the Crunch

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brand, which is near and dear to my heart. We've got part of the

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management team here. We're gonna do a 20, 25 minute

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conversation and panel on how to build an area developer,

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how to hire the right people, and, why,

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people resonate, to and congregate towards the crunch

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brand, no judgments, and results. So Peter, COO,

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Peter Constantino, kick it off for us here, and then we'll, introduce the rest of

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the team. And I wanna thank everybody for coming on. Thank you for having us,

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first of all. I really, really appreciate it. We were excited to jump on the

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call today and really just kinda share a little bit about ourselves. I mean, you

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know a good amount about the Crunch brand. You know, probably a good amount about

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our franchisee as well. You know, we're one of the fastest growing franchisees

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within the Crunch brand, sitting at 70 locations,

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finishing up this year around 75 locations if all falls

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into place. Next year, looking at another 12 to 15 to that, I

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think. You know, one of the things that makes us exciting

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is the energy of the brand, right? Who we are, you

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know, what our culture stands for. But more importantly, really, I think you'll

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get the feeling of it throughout this call is everybody that's on this call. You

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know, everybody that's on here is extremely passionate about fitness. All of us grew up

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in fitness, really the only thing we knew. And we really take that to work

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every day with our team members and make sure that they're excited so that they

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can make the members excited. So I think it it it'll resonate to

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you throughout the call. Great. And then, Jackie, you wanna

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go next? Hey. I'm Jackie. I am on our new

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club development team, have been with CR over

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10 years. Super excited to be here and to be part of this opportunity

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and absolutely love the fitness

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field. It's been a huge part of my life from the beginning and excited to

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share lots of information and details with you guys today.

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Great. Derek? Yeah. My name is Derek Truce, vice president of

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personal training for CR Fitness. Coming up on 8 years,

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with the organization. And I think just, you know, what's good to

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know before we start is that, you know, we're an organization that prioritizes people,

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and that's really what separated us at the end of the day that, we

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generally wanna invest back into our people. And so I think you'll you'll find the

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theme on this call pretty quickly that we've all been here for quite a while.

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I think in fitness, turnover is incredibly high, typically. Right? And the

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reality is all of us has been here for a while, and it'll continue to

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be the case as we continue to scale as having people that are on this

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journey for a long time is gonna be separate something that separates us from from

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maybe some of our competitors. Yeah. And, before we go to a

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lease, I I used to live in Manhattan Beach, California, and there was a Mexican

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restaurant called Pancho's on the corner. And every one of the waiters and

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waitresses and bartenders that work there would have their name tag, and

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it would say how many years they've been there. And everyone was over 20 years.

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So you know that nobody works there and then looks to update their resume or

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LinkedIn. Like, they're that's a family business, and, you know, they

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hire and and stay. So, they I love that idea

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too. Alisa, fire away. Yeah. Hey

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there. My name is Alyssa Diquino. I'm the VP of Group Fitness.

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I've been with CR Fitness for 8 years now. Actually, Derek and I

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started very, very simply around this but my passion is

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obviously group fitness style classes. I grew up dancing my

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voluntary life, so it's just such a natural thing to start teaching classes.

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And what I love about crunch is the opportunity, and that's my

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biggest mission is giving back the opportunity that I was given

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to my instructors, to everyone else, our employees, and

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having the ability to really build a career in fitness that most probably wouldn't

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see as possible before. Great. And Julian just joined us as

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well. Hey there, guys. So just going

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over, how we got started in the industry? Yeah. You have to be here for

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more than 8 years. You have to drop. So,

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so I, I've been in the industry since I was 14

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years old. Started working at Lifetime Fitness when I was 14, and

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then, started working at Crunch when I was 21 and been here for the last

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10 years. Started out, yeah, down in Tampa, Florida.

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Great. So we know, Jeff Dyer and,

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and know North Castle well from the from the beginning, of

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the original investment. And, obviously, he came from Lifestyle Family

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Fitness, back back in the day. So, Peter, what brought you to the

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to the company and, you know, being the COO of a, you know, a

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10 club chain is a lot different than being the COO of a 75 club

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chain. So maybe talk about how your your opportunities,

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challenges, and how you've kind of flexed who you are.

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Yeah. Absolutely. I had the pleasure of working with Jeff over at LifeStyle Family

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Fitness. So I was with LifeStyle for 12

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years, actually. You know, I started with them, moved down from New

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York, from Manhattan. Started with them and

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they were 7 locations, stayed with them all the way through the 52 locations through

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the sale to LA Fitness and Lifetime and all those pieces.

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And I think growing through that we saw, you got to experience a lot

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of the growing pains that you deal with, right? When you first start, we were

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all local, you could get to every club in a week. All of a sudden

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you're at 52 locations. It's more difficult to get to every club. It's there in

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other markets and you start learning that you really have to hone in

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on who your brand truly is as you get into all the markets. It was

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easy to tell people the story of lifestyle when you're in Florida because everyone knew

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you. All of a sudden you get into these outside markets and it becomes difficult.

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And I think experiencing that with Jeff, who was a huge

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mentor of mine, experiencing that with him, had an opportunity to work with Tony over

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at Lifestyle Family Fitness. And then one of my huge mentor of

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mine, Kevin LaFerriere, is actually the one that brought me over to Crunch Fitness. He

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was with Crunch at the time, gave me a call and

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gave me an opportunity to walk in and build the PT team however I wanted.

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He was like, look, you know, at Lifestyle, you came in as we had already

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started to build things. You were able to take it to a new level. But

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here at Crunch, it's yours. It's an open book, build it the way you want

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to build it. There's exciting things going on. And sure enough, got that

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opportunity. They trusted me enough to take the PT team. Higher on Derek

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Drews, he came in 2 months, I think it was after I started.

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And the 2 of us built, built the PT team. You know,

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as Derek said, first thing we looked at was how do we build it around

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our team members? How do we build it around the members themselves to make sure

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that they're happy first and let all the numbers and everything take care of themselves

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on the back end? So I think, again, going through the

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growing pains with Lifestyle, I was with Ufit sometime through their expansion

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and got to see a lot of the mistakes that we

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made, shortcomings that we had in terms of the vision that we

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had or understanding what was coming next. I was able to put a lot of

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that into play when we came to Crunch. Not to say that, that we

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didn't hit a lot of our own bumps in the road as we went along.

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But as you go, I mean, the important things is we've kept

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a team from a home team, right? We grow from within. So everyone

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understands who we are, understands what we're about. And I think that makes it very

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easy for us or easier for us to be able to pivot when we need

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to. You know, I think a lot of the bigger companies that I've seen or

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even been a part of, you start bringing people in from the outside that don't

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truly understand who you are. And when it's time to make a change or change

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on a dime and pivot, when you start to learn some of the mistakes you're

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making, it becomes very difficult. But with us, because everyone on this

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call is homegrown, You know, you have a conversation with Jackie or Julian or

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Derek or Alyssa and say, hey, here's what we've seen. Here's some of the

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opportunities we have. Here's what we see this coming down the road. Here's some of

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the changes we need to make. And it's made within a day or

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2, we change and do what we need to do. So, you know, it's been

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an exciting run. I think there's a lot for us to learn now that we

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started taking on some of these outside markets. It's funny, Julien and I were talking

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about it this morning as we were touring clubs together.

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Look at some of the outside markets and there's just differences in seasonalities

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and people's personalities and when people are excited about being in in the

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gyms. And you have to be able to adapt to that quickly and understand it

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and recognize it quickly. And I think we've done an amazing job with this team

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of being able to do that. So Great. So, Jackie, as you look

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at new club development and, you know, we've done a lot of

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work with Crunch and area developers. You know, there's a a Crunch 1 point o,

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a 2 point o, a 3 point o. There's, you know, rising construction costs.

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There's, you know, not not can't necessarily take the

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membership pricing up because, you know, this is the model and that model needs to

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to be nationwide. So when you look at new opportunities,

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do you look at them and say, hey. I wanna convince myself to do a

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new new location or convince me you know, I wanna say no, but, like,

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convince me to say yes. Or how have you kind of recalibrated how you think

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about opportunities? I absolutely love all the

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opportunities that we have. I love going into new markets. Currently, we are

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developing obviously in Florida. We just started Tennessee. We have some clubs

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in Texas. We have North Carolina. We have Georgia. And I think with

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every new market you go into, there's a certain level of excitement to

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bring what Crunch has. When I started with Crunch, we had 2

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locations. I remember walking into places in Carolwood in

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Tampa, Florida and be like, yeah. I'm from Crunch. People would be like, what is

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Crunch? Like, they had no idea. Right. And it has

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become really exciting to be part of a brand now that when you come

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into a market, people know, and they're so excited that we are

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coming to the market. And then for markets such as Tennessee

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or Texas when we first started out there, the challenges that you

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embrace being able to develop not only

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the community to know who we are but to develop the teams to who we

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are. I remember when we started our 1st club in South Florida, we road

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tripped our furthest south club all the way to Kissimmee to

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let them feel what crunch it is because you can explain it, but

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until you walk into a location and you hear the music and you get the

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high fives and you get that excitement of Alyssa with a group

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fitness class, they couldn't experience that. And when they finally

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feel that vibe, it's part of our biggest onboarding with new club development.

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You can't work a day in the field until you've come in and taken a

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workout, you've done a tour, and you've been part of us. And I think

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that's a huge part of the excitement that as we go into new clubs and

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new markets, I get to be a huge part of that opportunity.

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This is Pete Moore. I wanna let you in on a little secret. There's this

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company called Promotion Vault, and what they do is they give out rewards from

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retailers that allow you to incentivize your

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members without having to do 0 down and 1 month

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free or giving away shakes or giving away t shirts. What

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you wanna do is build a rewards program that lasts, that

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people value, and that doesn't discount your own products and services.

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So here's the deal. There's something called rewards vault. The rewards

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vault is going to allow a member to set up their own profile.

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They are going to answer questions. You are gonna get those answers. You're gonna be

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able to target those members, and you're gonna reward them inside your

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club, inside your spa, and outside of the club and outside

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of the spa to get them to become loyal, to get them to pay

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their monthly dues, and to be rewarded properly

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for the actions. A lot of companies are cutting back on rewards. You shouldn't

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be. Promotion Vault's your answer. Trust me. This is real.

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And and, listen, over to you on the group exercise. Obviously, there's been a

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lot of studio growth. You know, when Crunch started back with

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Doug LaVine back in New York, it it basically was just group exercise,

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you know, with a punch card. And, obviously, group programming and maybe, you

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know, an edgier side to group programming was always, you know, kind

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of the the DNA of Crunch. So one question

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is, what type of people are you recruiting for that? Are they

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instructors? Are they, you know, actors or entertainers? And and, like, you're

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you're kinda, you know, turning them into fitness instructors,

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because they have a personality. Or are you looking for people that have mastered some

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certification or trade or been from another club that that

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you're recruiting basically also probably bringing members with them?

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Yeah. That's a great question. It's actually a little bit of both. Right?

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I will tell you my favorite applicant sometimes is just

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coming from our member base because they tend to just love crunch. So if they're

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taking classes, they're in the classes, we can tell that they have the personality

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and love for it. We can give them all the tools and the tricks on,

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like, getting certified and becoming that great crunch instructor. The

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biggest thing I look for is personality. They have to have a fun,

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vibrant, energy because a lot of the time

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classes is entertainment. Right? A lot of people coming to classes, they're coming there because

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they need motivation. They need someone to tell them what to do. They might be

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dreading going to the gym, but it's the 45 minutes, 3 minutes hour with

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us that makes their day. So you have to provide that entertainment factor. So,

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yeah, dancers tend to have that that it factor that we

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look for. But also having those really skilled educated

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instructors are great too. It's just, it always comes down to their

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personality where we find that they're a great fit here because we we wanna be

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edgy. We wanna be that outside of the box type of brand. It's not gonna

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be very, very robotic. I always tell my instructors, I never want

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you to become a Crunch Robot. I want you to be you, but with

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our Crunch branding and our guided classes that we create.

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So all comes down to their personality because I can't teach

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that. I can teach everything else. Right. So we worked on a deal

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once, recently where, a club a Crunch

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franchise, area developer was buying in another club chain

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in the same market. And, turned out 50% of the

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employees that worked in personal training and group x worked at both

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locations and were basically, like, filling their calendar. So

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as you're at 75 clubs now and you kinda militarily or,

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like, tactically moving, do you now have the ability to have group

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instructors that have a full time job and that are that are going to each

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one of the clubs, or do you still kinda keep it as 1099 to

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maybe a little bit Peter, if you want to start? Actually, all of our instructors

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are w 4, w 2. So they all work for us.

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They have the ability to go teach it anywhere else. But what's great about us,

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especially when we start opening a lot of different locations within the same area,

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they tend to just fall towards crunch because instead of working for all these

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different gyms, they get the ability to teach at multiple

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locations. So they have that change from, gym to

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gym every day or every other, like, basically morning and night

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even, within our member base. So they have, like,

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such a cool opportunity of finding different

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people, but within our Crunch brand, which also makes it easier for them too because

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they're only learning one formatting. It's not going to another gym and learning their

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formatting. And then to the opportunity that we bring of you can teach

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a lot of different stuff from fitness to boxing to HitZone,

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Hot Studio, or we have Hot Yoga and Hot Fitness. Like, they really get to

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add to their repertoire of what they get to teach through us. And do you

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find that that's also easier to to recruit the best people because

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you're actually offering them benefits and health insurance and not

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just, you know, hey, here's a 10.99. You know, good luck. But you're you're

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you're not really part of the team versus, hey, you know, we're we're here to

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to grow with you, and we can actually offer you these benefits that

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on your own might be cost prohibitive. Yeah. Definitely. I mean,

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they're they're always so psyched for the growth. They wanna be a part of it.

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Most of these instructors wanna be a part of a family. You kinda hit home

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with that. Also being a part of a team instead of being 1 on 1,

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it's all about like the community vibe. So doing that on your own and

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building community is tough. But when you get our vehicle of CR

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fitness and crunch fitness and have the ability to grow the community, not in just

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1 gym, but multiple locations within our area, it's so,

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cool. So they definitely love that that we've

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Gotcha. Derek, over to you on the personal training side. A couple of

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questions. One is there were questions originally when the

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HVLP 1.02.0 came out

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that the community and the members that you're gonna bring maybe

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don't have as much disposable income to actually spend on

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personal training. So some people said, hey, that's that's a good idea, but

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probably not the right population to to feed into.

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How have you seen that kinda contradict what people thought

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and also the benefit of having PT on a recurring basis

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and what kind of results you're seeing? Yeah. That's what I thought. You up

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for that right now. Yeah. Yeah. No. I think, to be honest,

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that was part of the challenge that Pete and I liked when we got here.

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I remember some of the conversations early on where some of our clubs weren't necessarily

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in the best demographic areas, for example. Right? And the

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first club that I got to be a part of when we got here was

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still today probably our lowest demographic club, and it's a club that's done, you know,

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well over $200,000 a month in PT multiple times. Wow. And

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so I think when we got here, Pete and I knew, we knew sales.

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We understand sales. We're great at sales. But if we made it about sales, we're

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probably gonna struggle in in this type of,

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demographic that some of our clubs are in in the high value, low cost operation.

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Right? And so it was about creating a product that was so

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valuable that it outweighed the cost and people wanted to make the investment.

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And so it was about creating a sales process that our people believed

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in and that didn't come off salesy. And so that was our goal from the

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very beginning was, let's develop our people at the highest level in the

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industry. Let's onboard them unlike anywhere else. Let's give them

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a value proposition that's so strong. The members will find the money because they

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believe in the product versus trying to find a bunch of skilled salespeople that

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were slick and could, you know, maybe sell a training, but then, you know, that

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that member declines next month because of some of the demographics you're speaking to.

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Right? So our approach had to be different. And so when we got here, it

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was never about revenue. It was about finding people that believed what we

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believed. It was about finding people that wanted to genuinely care for someone. Because

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if you're cared about and you find Crunch as maybe the highlight of

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your day, you're going to find the disposable income because it's the most

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valuable thing in your life. And so that was our focus early on, and

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it's led to, you know, us becoming a a top PD department in the

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industry. That's amazing. Julian, over to you. You

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know, Lifetime, you're running like a big box. You're running like a family,

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you know, environment. You're trying to get revenue, you know, per family. Maybe

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it's like you're one of the KPIs. So as you kind of, like,

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brought into Crunch, how how did you kinda change your perspective on, like, what

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am I doing here? How do I, you know, what how do I how do

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I con what constitutes a win? Yeah. Well, I

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I I actually think that it it was a really good transition because I

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think that there were a lot of things that I brought from lifetime that ended

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up impacting me in a big way in the HVLP sector because,

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obviously, in HVLP, it's volume. And like you said,

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lifetime, it's much more about getting a smaller amount of people paying a lot

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more money. And in HVLP, it's kind of the exact opposite. And so

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one thing that I was kind of ingrained with at lifetime was that very customer

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service, that customer centric approach that a lot of times

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you don't see in HVLP. You see that it's very

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much, you know, it's it's just about churn and burn, churn and

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burn. And I brought in, a lot of those elements

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that, you know, you would find in a lifetime where it's all about the highs

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and the buys and the relationships and learning every single member's name, and that

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actually helped accelerate me into,

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being good in sales. And as we know in the fitness industry, numbers get you

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noticed and, you know, that that allowed me to move into management pretty quickly and

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then kinda be able to engrain my team with that same mentality where it's

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service first rather than sales first. And then, you know,

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focusing on service only helps sales kinda to resonate in a way of

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what, you know, Derek exactly just said. So it was,

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it was a pretty smooth transition, and in a lot of ways, that hospitality

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focus is what set me up for a lot of success, here at

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Crunch. That's good to hear. Yeah. We work with, we're investors in a company

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called Promotion Vault. I think you use them for member referrals and and and

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some, you know, incentive programs. Yeah. I I said this,

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this quote the other day. I wanna get, you know, Peter, maybe your reaction. About

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a year ago, I said, you know, I was at a tech conference. You can't

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have artificial intelligence until you have intelligence.

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And just to say, like, hey, to your point, Julian, I used to go to

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summer camp with by by the time you end the 1st week, you know, 600

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people's names. Right? So it's not difficult to do. And

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I feel like some people that are in the HVLP 1.0, 2.0,

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3.0 say, there's so many people, so much volume. Like, I can't

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personalize it. And I kinda call bullshit on that because

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this is a relationship, and you're paying me money. And we have a relationship.

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It's not, you know, $30 a month. It's 360 plus.

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You know? And so so, Peter, your reaction Yeah. Or, like, how you're actually saying,

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like, hey. I can't I had I can't get data. Like, I'm not I'm not

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hindered by my business model of HVLP to make me

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not do things that I wanna do or can do. Okay. What what kind

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of happened with Derek and Julian said, I don't think any of us on

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here walked into Crunch thinking it was an

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HVLP. What I mean by that is we didn't walk in with that mindset or

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that mentality. We walked into it as just another gym. There's equipment in there, there's

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a roof over our head, there's members standing in here, treat them the way you

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would have treated them at Lifetime or Lifestyle or Youfit or whatever company you were

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with, and you're gonna win. And, you know, it's

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funny, we attacked it differently. Exactly like you said, we will

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I'm very old school in a lot of the things that I'll do. The same

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quizzes that I used to do with trainers back in the day I do today,

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you walk in and say, go out there and tell me 5 people that you

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know, do you know their names? Do you know their phone numbers? Do you know

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their birth dates? Do you know their kids? Do you know something about them? Right.

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Not making it about going out there and finding a prospect or a client, but

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go out there and become the mayor of the gym. Make sure everybody knows your

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name. Everybody, you know, everybody else's name so that people feel like when they walk

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in, they're coming home, right? They're coming to a family.

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And I think when you treat it that way, when you create

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an environment like that, I don't think people that are paying

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$10 are people paying 100 I think people walk in the door and if they

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feel at home and they feel trusted and they feel heard, they find value in

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what you're doing and they find a way to become a part of it. And

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I think that's how all of us have attacked it. We've always looked at it

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as this isn't a $10 model. This is whatever we make it. This is whatever

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environment that we create. And I think that's what's been great about all of us

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is we've all come from models that, you know, charge

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a higher price point. You've been into that type of level, and we walked into

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Crunchko and we can create that same environment here. Let's just attack it that

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way. Nice. And then, Alyssa, from the group exercise side

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of it, you know, how do you think about

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membership and and, you know, how many people are using it? And then,

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Derek, if you kinda comment on, are you kind of toggling people between,

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hey. I want you to do 3 days of group exercise, and you're gonna do

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a couple days of personal training. I feel like that model makes sense,

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but not necessarily has been, like, implemented successfully in a lot of places

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I've seen. So, Alyssa, I'll start start with you on group action. Maybe

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prescriptive group acts. Yeah. So we

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do a really great job of creating a experienced

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tour process. I mean, that's all Julien, and really

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getting the nuts and bolts of what the member wants out of

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a gym. And then from there, we can cater classes based off of, like, what

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their need is. Right? So if someone's coming in and they need cardio,

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then we have thousands of cardio classes that we can, quote, unquote,

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prescribe to them, vice versa. We always wanna see, like, what they might

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need that they don't know that they're gonna need. I think that's something that's great

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about Crunch is we offer so much that they might have never known

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that they needed hot yoga, but they go and step in a hot yoga class

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and, like, whack. Like, I feel 10 times better after I take that same

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class. Membership wise, at the end of the day, we gotta

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sell the memberships, and then we'll get them into those classes based off of

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just also to the excitement. But starting with that tour process and

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really being able to build value based on what we offer for such a

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low price because you're not gonna find that anywhere else. As you mentioned, the

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studios that we compete with, like, they offer

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amazing classes, but you you pay for it. So we really

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challenge to provide that same type of value for the cost that we

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have, and it's just unmatched for our members, giving them that true

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accessibility through our membership that they don't get anywhere else.

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And, Julian, you wanna I think we we we dropped, Derek here. You wanna

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just comment on, like, bringing somebody through different programming inside

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the club, and and how does that actually get executed?

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Yeah. From, I mean, if we're talking about it, I think that the member

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experience is a reflection of the team member experience. And so, you know,

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making sure that you're always going back to a

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systematic and structured onboarding process where, you know, people aren't just

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getting thrown into the mix. They're experiencing your product and turning them into

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raving fans. I think that, you know, to add on actually to a

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point, just a little off topic on it, but still along the same line.

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You You know, one of the things that Alyssa brought up earlier is we love

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hiring people that, are members. Because a lot of the times, they're fans

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of the product, but, can they already know it themselves? But really

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just making sure that your onboarding process is

435
00:26:23,049 --> 00:26:26,890
really forcing your team to experience your product, fall in love with the group

436
00:26:26,890 --> 00:26:30,650
fitness programming, fall in love with, you know, the

437
00:26:30,650 --> 00:26:34,330
the the process of PT and, you know, incentivizing people to get

438
00:26:34,330 --> 00:26:38,175
involved in personal training and group fitness is something that's huge. Because if we're

439
00:26:38,175 --> 00:26:41,935
all, you know, using the products ourselves, we're obviously gonna have

440
00:26:41,935 --> 00:26:45,375
a firsthand experience to where we're gonna wanna share it with other people. You know?

441
00:26:45,375 --> 00:26:48,815
So and in in sales, we all know the excitement's caught, not taught.

442
00:26:48,815 --> 00:26:52,590
So making them excited about it is is key, and that begins with onboarding.

443
00:26:52,970 --> 00:26:56,170
You know, Pete, to to speak to the PT side for for a second because

444
00:26:56,170 --> 00:26:59,550
I know Derek had some, difficulties. He just fell off, unfortunately.

445
00:26:59,930 --> 00:27:03,070
One of the things that we built into the program early on for PT was

446
00:27:03,394 --> 00:27:06,755
that within our presentation, Group X was a part of it. What I mean by

447
00:27:06,755 --> 00:27:09,794
that is it wasn't your program design is just meeting with a trainer. Your program

448
00:27:09,794 --> 00:27:12,995
design is, here's your sessions with the trainer. Here's your sessions on your own. And

449
00:27:12,995 --> 00:27:15,794
oh, by the way, here's how we're going to fill in those gaps of cardio

450
00:27:15,794 --> 00:27:19,530
or flexibility or mobility or whatever it is, utilizing Group X. You

451
00:27:19,530 --> 00:27:22,730
know, we we knew it was important early on. You know, somebody gets involved in

452
00:27:22,730 --> 00:27:26,090
group x, they're staying longer than your average member. Right? So we we know it's

453
00:27:26,090 --> 00:27:28,570
important for us to get them involved, and we make sure that we plug them

454
00:27:28,570 --> 00:27:30,190
in as many places as possible.

455
00:27:33,765 --> 00:27:37,385
This is Pete Moore. Here's the last tip for you of the podcast.

456
00:27:37,845 --> 00:27:41,545
We are partnered up with a company called Higher Dose. Higherdose.com.

457
00:27:42,645 --> 00:27:46,185
They are the leader in workout recovery products,

458
00:27:46,565 --> 00:27:50,409
infrared technology, LED light masks, neck

459
00:27:50,409 --> 00:27:54,110
enhancers, and other products such as PMF

460
00:27:54,250 --> 00:27:57,770
mats and sauna blankets. If you have not gotten

461
00:27:57,770 --> 00:28:01,605
on the workout recovery train yet, your time

462
00:28:01,605 --> 00:28:05,365
and your stop is now. You gotta get these products in there before

463
00:28:05,365 --> 00:28:08,965
these workout recovery and spas end up saturating your

464
00:28:08,965 --> 00:28:12,725
market, having your members walk out of the club and going into one of their

465
00:28:12,725 --> 00:28:16,169
locations for $200 per month where they're paying

466
00:28:16,169 --> 00:28:19,950
39 to you. Let's become an expert in workout recovery

467
00:28:20,330 --> 00:28:24,110
if we are already an authority in workouts. Higher dose,

468
00:28:24,490 --> 00:28:28,090
check it out. There's a wholesale code, and we look

469
00:28:28,090 --> 00:28:31,535
forward to helping you augment your products and services

470
00:28:31,835 --> 00:28:35,675
to meet the demands of your members. And, hey, let's get people

471
00:28:35,675 --> 00:28:39,355
happy, healthy, and sweating, and the recovery should be

472
00:28:39,355 --> 00:28:40,575
just as good as the workout.

473
00:28:43,890 --> 00:28:47,110
One of the benefits of having a franchise or franchisee relationship

474
00:28:47,650 --> 00:28:51,250
is they'll give you the blueprint of here here's what we want on the equipment

475
00:28:51,250 --> 00:28:55,090
side. Here's what we want on the on the layout. Here's

476
00:28:55,090 --> 00:28:58,550
the site selection with Bucks did and all those nice, you know, reports.

477
00:28:59,015 --> 00:29:02,375
What are some of the things that maybe you've had, like, an

478
00:29:02,375 --> 00:29:05,915
moment on or said, like, hey. This is, like, Crunch

479
00:29:06,535 --> 00:29:10,375
specific or hey. We're doing a couple things here that maybe is behind

480
00:29:10,375 --> 00:29:13,735
the curtain, but it actually, like, is really beneficial because we have

481
00:29:13,735 --> 00:29:17,490
someone that wakes up every day and is trying to get the franchisees to

482
00:29:17,490 --> 00:29:21,250
be more successful. I think being part of new club, I've

483
00:29:21,250 --> 00:29:24,790
I've watched the whole evolution, as you said, from 1 to 2 to 3.

484
00:29:25,410 --> 00:29:28,690
And right now, we're getting ready to launch our East Plano location, which is going

485
00:29:28,690 --> 00:29:32,205
to be the first 3 point o, in the country, and it

486
00:29:32,205 --> 00:29:36,045
is incredible watching how we have evolved from

487
00:29:36,045 --> 00:29:39,645
day 1. Like, I look at our offerings. I remember when we first got Hammer

488
00:29:39,645 --> 00:29:43,165
Strength, we were so excited to get Hammer Strength at CP. That was a huge

489
00:29:43,165 --> 00:29:46,870
thing that Tony wanted to get. I look at we didn't have a relax and

490
00:29:46,870 --> 00:29:50,550
recover when I started. I remember my office at Carolwood disappeared and turned

491
00:29:50,550 --> 00:29:54,070
into the hydromassage room, and that was not hydromassage. It's compression

492
00:29:54,070 --> 00:29:57,750
massage. It's cryoloungers. It's level 2 stand up tanning

493
00:29:57,750 --> 00:30:01,585
beds. And then when you look at the evolution of our studios, we

494
00:30:01,585 --> 00:30:05,105
went from having a standard group fitness studio to now having

495
00:30:05,105 --> 00:30:08,865
cycle classes, not just hot, we have the hot stuff studio, which

496
00:30:08,865 --> 00:30:12,539
has a ton of offerings, hit and boxing. And so for me, it's

497
00:30:12,539 --> 00:30:16,220
super exciting because all of a sudden, the evolution of

498
00:30:16,220 --> 00:30:19,679
what we offer, when I'm out in the field marketing

499
00:30:20,220 --> 00:30:23,899
and I go up to somebody and, you know, we're a entry level

500
00:30:23,899 --> 00:30:27,685
price gym, but the offerings that we have when I have a conversation with

501
00:30:27,685 --> 00:30:30,725
somebody, I'll jokingly say, hey. All the money you're gonna save, you can take me

502
00:30:30,725 --> 00:30:34,165
out for lunch because they're saving a ton of money. If you

503
00:30:34,165 --> 00:30:38,005
compare people that are going to different studios and, you know,

504
00:30:38,005 --> 00:30:41,570
they have all these different separate memberships, and then all of a

505
00:30:41,570 --> 00:30:45,190
sudden, they come to Crunch, and it doesn't matter if you're deconditioned

506
00:30:45,410 --> 00:30:48,530
and you're afraid to come to the gym. It's okay. Start with the relax and

507
00:30:48,530 --> 00:30:52,290
recover. If you're somebody that's super hardcore, we've got

508
00:30:52,290 --> 00:30:55,965
tons of squat racks. If you're somebody that, whatever you want,

509
00:30:56,105 --> 00:30:59,784
we have something for everybody. And I think that is what has really

510
00:30:59,784 --> 00:31:03,325
made us successful because we appeal to everybody. One of my favorite

511
00:31:03,865 --> 00:31:07,559
questions I get is, who's your customer? And I always chuckle when

512
00:31:07,559 --> 00:31:11,400
people ask me that because I'm saying, it's everybody. There's not one person that we

513
00:31:11,400 --> 00:31:14,700
appeal to. It doesn't matter your age. It doesn't matter your demographic.

514
00:31:15,400 --> 00:31:19,020
We will work in one way or another for everyone. Yeah.

515
00:31:19,320 --> 00:31:23,054
Great. So, so, Peter, in in closing here, you know,

516
00:31:23,054 --> 00:31:26,495
for for the audience, there's probably 8 private equity groups now that are that are

517
00:31:26,495 --> 00:31:30,255
invested in Crunch Area developers. That number is gonna probably continue to

518
00:31:30,255 --> 00:31:34,095
rise. A lot of the the private equity investors that

519
00:31:34,095 --> 00:31:37,610
missed the wave of Planet and missed the wave of Arch Theory, I I think

520
00:31:37,610 --> 00:31:41,390
are now getting in on Crunch as saying, like, okay. I'm not missing this one.

521
00:31:41,930 --> 00:31:45,710
So maybe how do you see, you know, the the brand trending?

522
00:31:46,650 --> 00:31:50,425
How excited are you about the next several years? And, you know, where do

523
00:31:50,425 --> 00:31:53,965
you think the biggest opportunity is? And I appreciate everybody coming on.

524
00:31:54,345 --> 00:31:57,705
Yeah. Absolutely. I think, for

525
00:31:57,705 --> 00:32:01,225
us, as I said, 12 to 15 locations each year, I think the brand as

526
00:32:01,225 --> 00:32:04,845
a whole, you'll start to see everybody start to speed up. We've made some

527
00:32:05,810 --> 00:32:08,370
some changes in the corporate office. You know, Shaquan came on with this, I think

528
00:32:08,370 --> 00:32:11,910
with a new new mindset, some new ideas that are really going to push us.

529
00:32:11,970 --> 00:32:15,650
You know, we brought people in to start looking at franchising just

530
00:32:15,650 --> 00:32:19,330
outside of the US and start look and changing the industry that way or

531
00:32:19,330 --> 00:32:22,785
changing our part of the industry that way. I think when you look at us,

532
00:32:22,785 --> 00:32:26,145
the biggest opportunity is how that we start to

533
00:32:26,145 --> 00:32:29,745
connect with

534
00:32:29,745 --> 00:32:33,570
medical groups, with insurance companies, be able to offer people that,

535
00:32:33,570 --> 00:32:37,250
you know, that gap, right? You finish with your physical therapy, there's a gap

536
00:32:37,250 --> 00:32:40,630
between that and when you get into the fitness industry and nobody's really tapped into

537
00:32:41,169 --> 00:32:43,669
it correctly. Everyone's tried, everyone's

538
00:32:44,929 --> 00:32:47,169
finds ways to get members in the door and do that. But I don't think

539
00:32:47,169 --> 00:32:50,054
anybody's correctly looked at and said, okay, I'm going to be able to take you

540
00:32:50,054 --> 00:32:53,095
from A to Z. And I think anyone who does that, whether it be Crunch

541
00:32:53,095 --> 00:32:56,934
or anyone that's out there, finds that that space and how to really tap into

542
00:32:56,934 --> 00:33:00,534
it correctly and work with the insurance companies. I think they're the ones that are

543
00:33:00,534 --> 00:33:04,370
going to really jump off and crunch. You know, we're positioned and poised

544
00:33:04,370 --> 00:33:07,970
the right way to be able to do that. You know, CR fitness in general,

545
00:33:07,970 --> 00:33:11,490
you look at our PT team, we're industry leaders in that way. And we're

546
00:33:11,490 --> 00:33:14,770
constantly looking at how we can tap into it. So I think we'll be one,

547
00:33:14,770 --> 00:33:17,955
I'm gonna be boastful here and say, I believe we'll be one of the first

548
00:33:17,955 --> 00:33:21,095
that's gonna be able to do it, and I'm excited to see where it goes.

549
00:33:21,235 --> 00:33:24,435
That's great. Derek, you wanna tap in there for a second? Or you just jumped

550
00:33:24,435 --> 00:33:28,035
in and closer. You you didn't get to speak. Yeah. Sorry, guys.

551
00:33:28,195 --> 00:33:30,760
We're we're doing a test pilot pilot here right now, and so they're messing with

552
00:33:30,760 --> 00:33:34,280
the Internet. So I lost Internet. No problem. I I think that echoes Pete

553
00:33:34,360 --> 00:33:38,120
Pete's point. I think, you know, a lot of times, you see companies in the

554
00:33:38,120 --> 00:33:41,480
industry right now that were strong players that are now starting to

555
00:33:41,480 --> 00:33:45,020
struggle. And I think a lot of that is because of their inability to adapt.

556
00:33:45,265 --> 00:33:48,145
And I think for us, you know, one of the things that Tony, our CEO,

557
00:33:48,145 --> 00:33:51,285
says all the time is we have to be risk takers. And I think SCR,

558
00:33:51,345 --> 00:33:54,865
specifically, we're willing to take risks. We have to. Our members

559
00:33:54,865 --> 00:33:58,020
deserve that. And so I think that's one of the things you'll see from the

560
00:33:58,020 --> 00:34:01,160
Crunch brand in general over the next couple years is we're gonna take some risks.

561
00:34:01,300 --> 00:34:04,520
We're gonna throw some things out there that other groups haven't been willing to do,

562
00:34:04,820 --> 00:34:08,420
and something's going to stick. And whatever it is that sticks is gonna allow us

563
00:34:08,420 --> 00:34:11,460
to be innovative and, I think, set the tone for the rest of the industry.

564
00:34:11,460 --> 00:34:14,755
And I'm so I'm excited to see what that is. Alright. So CR Fitness is

565
00:34:14,755 --> 00:34:18,355
now Crunch Risk Fitness, and we certainly resolve to that. So

566
00:34:18,675 --> 00:34:22,275
that. I like that. I like that. I'll take that. And, yeah.

567
00:34:22,275 --> 00:34:26,114
Look, you know, having you guys as as thought leaders and action leaders in

568
00:34:26,114 --> 00:34:29,840
the industry and in in a in a franchise, really, I think is important because

569
00:34:29,840 --> 00:34:33,360
it does raise the bar of what other people should be doing and and then

570
00:34:33,360 --> 00:34:37,120
sharing those best practices. I've seen that out of your group into other

571
00:34:37,120 --> 00:34:40,560
groups that I work with. And, please, give my regards to

572
00:34:40,560 --> 00:34:44,155
your your, your your crew there that I've known for many years with

573
00:34:44,155 --> 00:34:47,935
Lifetime Family Fitness. I think I used to run your website back in 2000

574
00:34:48,315 --> 00:34:52,074
back in the day. So so things have come a come a long way. But,

575
00:34:52,074 --> 00:34:55,550
you know, focusing on employees first and actually building the

576
00:34:55,550 --> 00:34:59,310
foundation. I mean, it's hard to it's hard to not make the

577
00:34:59,310 --> 00:35:02,470
playoffs every year if you have a great team. So congrats on what you guys

578
00:35:02,470 --> 00:35:06,270
have built. And thanks for coming on Halo Talks and, you know, changing millions

579
00:35:06,270 --> 00:35:08,795
of people's lives. Thank you,

580
00:35:14,855 --> 00:35:15,605
Rick. Awesome.