OPERATOR PERSPECTIVE
OPERATOR PERSPECTIVE
Tell us about your KPIs Every club operates with a Balanced Scorecard, tracking a range of performance indicators from EBITDAR to net membership movement, compliance audits to guest reviews. Each department – from fitness and spa to café- bars – also has its own Balanced Scorecard. It’s a straightforward red–amber–green system and it fosters healthy competition between clubs and General Managers. No-one wants to sit at the bottom of the league table. We scrutinise the data closely to understand what success looks like and to identify best practice. Equally, where performance dips, we aim to understand the root causes and offer tailored support. Transparency and communication are key. We encourage honest conversations with our teams to understand their challenges and implement changes that support success. The Balanced Scorecard is more than a measurement tool – it’s a driver of both customer experience and colleague engagement. Achievements are celebrated regularly, with recognition and awards for top-performing individuals and teams. There’s a real sense of pride among the winners and I’d like to grow this culture even further. Tell us more about company culture The culture at Bannatyne has evolved significantly in recent years, with team member retention improving by 8 per cent over a three-year period – a notable achievement in a challenging sector.
In line with the industry – and most other sectors – we have increased our membership prices, but we have deliberately kept these below inflation. We’re also leveraging secondary revenue streams such as Health Hero and Les Mills On Demand. That said, with 76 per cent of our income derived from memberships, getting the yield model right is essential. On the cost side, it’s been a balancing act. Since 2019, the National Minimum Wage has increased by 50 per cent, while our revenues have risen by around 18–19 per cent. This is a considerable challenge within a staffed, mid- market model where members expect a high standard of customer experience. We’ve responded with a line-by-line approach to cost control, challenging suppliers and identifying opportunities for savings without compromising quality. Despite this, we expect EBITDAR to remain flat in 2025, with rising costs offsetting any revenue gains. There is a limit to what can be passed on to our members and guests.
With 76 per cent of our income derived from memberships, getting the yield model right is essential
KAREN WILKINSON
The Bannatyne Group’s Managing Director reflects on a year of record performance and reveals the strategy behind the figures
What’s the latest from The Bannatyne Group? 2024 was a particularly strong year for the Group, with revenues rising by 7.7 per cent to £149.7m and pre-tax profits increasing by more than 40 per cent to £14.4m for the year ending 31 December 2024. Our health clubs remain the cornerstone of the business, contributing 76 per cent of total revenue across our 67 sites. The spa division continues to thrive, accounting for 18 per cent of turnover; all 44 of our spas operate on a pay- as-you-go model, with preferential rates for our members.
This growth in profitability is a remarkable achievement, especially given the inflationary pressures we’ve faced, from escalating energy costs to increases in the National Minimum Wage. What’s driving this strong performance? Several factors underpin this performance. Key among them are a highly efficient operational model, sustained membership growth, smart revenue management and pricing, process automation and rigorous cost control.
78
79
STATE OF THE UK FITNESS INDUSTRY REPORT 2025
STATE OF THE UK FITNESS INDUSTRY REPORT 2025
Made with FlippingBook flipbook maker