FOUNDER FOREWORD
LEISURE DB
CONTINUED CREATIVITY
In 2018, when Leisure DB published its first London Boutique Studio Report, it was easy to be seduced by the boutique lifestyle. Founded by individuals with ideas, passion and energy, the studios’ premium experiences, environments and emotions inspired loyal communities. 2018 was the heyday for operators and consumers, with visitors coming from far and wide to try London’s latest concepts – 62 studios opened in London that year, more than in NYC – while globally F45, then the fastest-growing brand, opened 900+ sites. The momentum was still there in February 2020, when Emma Barry published Building a Badass Boutique. I was honoured to write the book’s foreword and, at its London launch, speak about how the whole industry was having a ‘fitainment’ moment like never before. One month later, pandemic and lockdowns. You’ll all have heard the joke: ‘How do you make a small fortune? Start with a large fortune and open a vineyard.’ While few boutiques started with a fortune of any kind, instead borrowing capital at initially low interest rates, the joke sadly still resonates for this sector. Yet in spite of some permanent closures and a few brands falling into administration or liquidation, most have emerged leaner, stronger, more nimble. As Frame’s Joan Murphy says on page 40, they have proved their business twice: before and after COVID. Other operators interviewed for this report show they also remain in the pioneering spirit, responding to changing consumer behaviours with creativity and passion. Moving more people more often is a common theme, with Psycle’s David Watt (page 75) talking about the transformative power of movement. Emma Barry talks about Generation Anxious (page 20). Ten’s Joanne Mathews highlights a growing interest in women’s health (page 45). Franchising is a key theme, with some of London’s trailblazers seeing this as the way forward for their phenomenal products. Meanwhile you have to sense that Xponential – listed on the NYSE as NPOF for those who’d like to follow its progress – is still just at the beginning of its international expansion journey. Several of our commentators warn that franchising won’t work for everyone, however. Look no further than current London market leader F45, whose delayed accounts for year ending 2022 have finally been published and show a loss of US$582m. A Google search also suggests a financial and legal workout courtesy of David Beckham’s celebrity endorsement. Finally, from our interviewees I hear a cry for more transparency, openness and sharing to grow the sector together, as well as a move away from constant discounting. We need to move these discussions forward – and potentially the definition of boutique, which for the purposes of data comparison remains the same for this 2023 report as for 2018’s. Leisure DB is therefore inviting boutique studio owner-operators to a roundtable, both to progress the debate and to continue to evolve and expand this report in collaboration with the sector. The creativity and innovation of boutiques is here to stay. We are here to support that.
Operators remain in the pioneering spirit, responding to changing consumer behaviours with creativity and passion.
DAVID MINTON Founder, Leisure DB
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LONDON BOUTIQUE STUDIO REPORT 2023
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