Boutique fitness studio Barry’s Bootcamp is getting its original West Hollywood location back in shape.
The company relaunched the space this month by pumping up its amenities as part of an overall plan to grow its footprint nationally and internationally. It has opened two locations in New York this year and locations in Venice and Chicago are planned. The expansion, said Joey Gonzalez, Barry’s chief executive, has been prompted by a desire to challenge an increasing number of competitors and funded by an infusion of outside capital.
“We could really sense that this industry was becoming very big, very fast,” Gonzalez said. “And we definitely didn’t want to fall behind.”
Almost every neighborhood in Los Angeles is littered with trendy boutique fitness studios such as Pop Physique, SoulCycle, Bar Method, Crossfit, and Orangetheory Fitness. That growth has increased competition for studios, and many, including Barry’s, are making moves to create a more bespoke experience.
Gonzalez said renovating the West Hollywood location took time because the company needed to swallow neighboring office space to build out additional amenities, including locker rooms, showers, and a fuel bar with snacks and juices. But he said the effort was necessary due to a growing desire among consumers to have a more holistic experience.
“People have less time, (and) we realized our customers really needed these things,” he said. “It took us a bit of time because we were at the mercy of the businesses around us. But luckily it finally happened.”
Peter Hsia, retail private equity strategist for New York consulting firm Kurt Salmon, said the fitness centers are experiencing the same pressures as hotels in terms of needing to keep the vibe modern and energizing.
“You have to keep them fresh,” Hsia said. “Every time someone remodels it suddenly gets a boost in perception. But six years later they’re looking long in the tooth because everyone else keeps upping the standard.”
Barry’s Bootcamp was founded by Barry Jay with backing from John and Rachel Mumford in 1998.
Jay got his start working at the front desk of former West L.A. health club Sports Connection, eventually becoming a sought-after instructor known for incorporating weights into his cardio classes. The Mumfords approached Jay about opening his own studio shortly after taking his classes.
His high-intensity workout attracted a number of celebrities and athletes and was one of the first to usher in the boutique fitness craze. The company is reportedly worth more than $100 million.
Barry’s didn’t open its second location, in Sherman Oaks, until 2003. But it has since grown to 23 studios.
Gonzalez, who began his career at Barry’s as an instructor in 2004, said the company has been careful not to expand too quickly.
“We never took any outside money from investors and just grew organically,” he said.
But last summer it received an undisclosed investment from Greenwich, Conn.-based private equity firm North Castle Partners, whose portfolio includes high-end gym chain Equinox among a number of other health and fitness brands, to help fuel the company’s retail expansion into new markets.
Jay and the Mumfords remain partners in the business, though Gonzalez took the helm as chief executive with the North Castle investment.
“It was time for us to look outside to get funding to help us expand the way that the business deserved to be expanded,” he said.
New moves
Gonzalez said the firm’s goal is to hit 50 outlets in major cities, but its international expansion of franchised locations is slightly more flexible. The company recently signed a deal to enter Canada and will be opening its fourth location in Norway as well as a studio in Dubai this fall.
“Barry’s is a premium, trendy, fun, sexy brand. We feel there are certain cities around the world that will respond well to who we are,” Gonzalez said. “And we get as many international requests as we do domestic. It’s mind-blowing.”
Barry’s jump into new regions might prove tough in a market that is quickly becoming saturated. But Gonzalez said he’s undeterred.
“It has forced me and the team to continue to innovate and figure out how we can be better and offer more,” he said.
For example, the company’s Chicago location will be home to a new stretch lab, a space where clients can stretch before and after class and use rollers to help relieve muscle tension.
It’s not the first time the company shifted its model by adding new amenities. Gonzalez said when Barry’s opened its first New York location six years ago, executives realized the studio needed to offer more than just a check-in desk and workout space.
The company built out locker rooms, showers, and collaborated with Gonzalez’s husband, Greenleaf Gourmet Chopshop founder Jonathan Rollo, on creating a fuel bar with healthy snacks and drinks.
Boutique studios such as Barry’s have the ability to generate higher revenue per customer, according to a recent report by Bryan O’Rourke, founder and chief executive of Covington, La., fitness consulting firm Integerus Advisors.
Individual classes often cost as much as $35 while mass-market gyms offer monthly dues of $34 to $45 a month.
Hsia of Kurt Salmon added that boutique studios also have the benefit of requiring less space and lower operating costs compared with full-service gyms.
“These boutique concepts can fit in a shoebox, so you can make it much more convenient, much more local,” he said.
But getting the location right can be tough, Hsia cautioned, as most consumers look to boutique studios as an add-on service to their regular gym membership, purchasing a few classes here and there. So convenient locations near denser populations are paramount.
Gonzalez said more than 80 percent of Barry’s clients buy packages over memberships.
“The balancing act comes in making sure your instructors are going to be able to drive the traffic you need for the classes you’re hosting,” he said. “That’s always the No. 1 solution to having a successful boutique studio. If you get it right, it’s a very healthy model.”
