OPERATOR PERSPECTIVE
We have our own set of metrics and unit economics that determine how we sell franchise territories. Our territories vary in size and capacity based on units of demand, so everyone has an equal and fair opportunity to be successful whether they’re in a densely populated area of London or a smaller town or city. We believe that’s the right approach – that our obligation is to set our franchisees up for success. What are you seeing in the London market? The pandemic gave consumers a wake-up call in terms of their health. They’re more sophisticated now in their understanding and more diligent in their search for fitness offerings that deliver sustainable, long-term results. There is still a demand for low-cost fitness, but boutiques are there for those who want personalised service, value – not least real, measurable results – and something more experiential. For many consumers, fitness is no longer discretionary. It’s a must in their lives, with price points becoming less of a barrier. This is helped by the fact that London definitely feels more buoyant now than when we visited a year or so ago, when the impact of the pandemic and the Ukraine war were really very evident. What are your plans for London and the UK? We opened our first London site earlier this year, in Battersea Park, and Hackney will open in the next few months. We’re also in search mode or signing leases in Croydon, Wandsworth and Fulham, while our Battersea franchisees are looking for their second site having surpassed their indicative growth plans and P&L. Outside of London, we also have a site open in Leicester. We want to keep growing, but we’ll do so without getting a speeding ticket. Every new country needs to be nurtured, so we’ll take our time, learn the lessons of the market, understand the nuances and ensure we’re able to support our franchisees and set them up for success. We’ll also be very careful to choose the right franchisees. Our global CEO Richard Burnet and I spend a lot of time on the ground, meeting people face-to-face, and we don’t take on everyone who shows an interest in BFT. We need the right people to represent the brand and work collaboratively as part of our community. How many sites will we do in London and the UK? We don’t actually set goals or limitations on our growth. What we do know is that it will be largely predicated on the success of our first 10-15 sites: if they do well, consistently delivering a great member experience and with happy franchisees who feel supported, the rest will take care of itself. The brand will continue to grow and prosper. Success breeds success. Sites breed sites.
We want to keep growing, but we’ll do so without getting a speeding ticket. Every new country needs to be nurtured.
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LONDON BOUTIQUE STUDIO REPORT 2023
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