1 00:00:00,880 --> 00:00:05,040 Speaker 1: You're listening to Bloomberg Business of Sports from Bloomberg Radio. 2 00:00:05,720 --> 00:00:08,440 Speaker 1: Hi everyone, I'm Jason Kelly, and I'm Mike Lynch and 3 00:00:08,440 --> 00:00:10,920 Speaker 1: I'm Michael Barr. And this is the Bloomberg Business of 4 00:00:10,960 --> 00:00:13,840 Speaker 1: Sports podcast, where we explore the big money issues in 5 00:00:13,880 --> 00:00:17,520 Speaker 1: the world of sports. Well, guys, are very timely conversation today. 6 00:00:17,600 --> 00:00:20,360 Speaker 1: You know, I love talking about fitness, and we've got 7 00:00:20,400 --> 00:00:23,239 Speaker 1: the perfect guy to talk about it, and he's been 8 00:00:23,239 --> 00:00:25,400 Speaker 1: making some news lately, he and his company. We're talking 9 00:00:25,400 --> 00:00:28,080 Speaker 1: about Anthony Geisler. He's the founder in the CEO of 10 00:00:28,160 --> 00:00:33,720 Speaker 1: Exponential Fitness, the largest boutique fitness curator. Nine brands they've 11 00:00:33,760 --> 00:00:37,480 Speaker 1: got under the umbrella. Brands you have heard of, Club Pilates, 12 00:00:37,560 --> 00:00:43,159 Speaker 1: Pure Bar, Cycle Bar among them. Anthony joins us from Irvine, California. Anthony, 13 00:00:43,479 --> 00:00:45,640 Speaker 1: First of all, great to reconnect with you. You and 14 00:00:45,680 --> 00:00:48,640 Speaker 1: I were talking before we came on air. You and 15 00:00:48,680 --> 00:00:51,840 Speaker 1: I first met virtually back in two seventeen. I think 16 00:00:51,880 --> 00:00:54,320 Speaker 1: the world has obviously changed. The world is very different 17 00:00:54,560 --> 00:00:58,240 Speaker 1: for you guys of late. Uh, you're a publicly traded company. 18 00:00:58,280 --> 00:01:01,920 Speaker 1: Now it's all happening. Tell us about what's going on. 19 00:01:02,040 --> 00:01:05,319 Speaker 1: Bring us up to date, Well, I appreciate it. Yeah, 20 00:01:05,360 --> 00:01:09,640 Speaker 1: it's been uh since a lot has happened. Um. You know, 21 00:01:11,400 --> 00:01:14,160 Speaker 1: we had one brand, Club Pilates, which was the first 22 00:01:14,160 --> 00:01:18,200 Speaker 1: in our portfolio of now nine brands. UM, so you know, 23 00:01:18,280 --> 00:01:21,360 Speaker 1: we we entered the world of cycling with Cycle Bar 24 00:01:21,480 --> 00:01:25,720 Speaker 1: and Stretch Lab was stretching, row House, rowing a KT 25 00:01:25,959 --> 00:01:31,840 Speaker 1: Dance Yoga six pure bar Stride start running concept kind 26 00:01:31,840 --> 00:01:34,800 Speaker 1: of like a Berry's would be. Um. And then uh, 27 00:01:34,920 --> 00:01:38,800 Speaker 1: you know our latest acquisition, Rumble Boxing, um, which you 28 00:01:38,840 --> 00:01:42,520 Speaker 1: know we've been we've been selling like fire. So UM, 29 00:01:42,560 --> 00:01:45,160 Speaker 1: it's uh, I think what we talked we were probably 30 00:01:45,200 --> 00:01:49,600 Speaker 1: at a you know, two to three four locations something 31 00:01:49,640 --> 00:01:52,400 Speaker 1: like that, and now we're we're pushing a two thousand 32 00:01:52,440 --> 00:01:57,800 Speaker 1: with you know, thirty six hundred franchises sold um kind 33 00:01:57,800 --> 00:02:00,400 Speaker 1: of here in the United States, an extra seven hundred 34 00:02:00,480 --> 00:02:06,760 Speaker 1: and forty plus international studios contracted for on top of that. 35 00:02:07,040 --> 00:02:10,359 Speaker 1: And so you know we've we've spread from from one 36 00:02:10,360 --> 00:02:13,840 Speaker 1: brand of nine one country to eleven and uh in 37 00:02:14,280 --> 00:02:17,720 Speaker 1: thousands of franchises sold. So it's been a it's been 38 00:02:17,720 --> 00:02:21,240 Speaker 1: a busy four years. Uh. Then to pick me back up, 39 00:02:22,080 --> 00:02:24,840 Speaker 1: wait a minute, you threw something out there rumble boxing. 40 00:02:24,960 --> 00:02:28,240 Speaker 1: You have to tell me what that's all about. Yeah, 41 00:02:28,360 --> 00:02:31,640 Speaker 1: Rumbles great if you live in any major d M 42 00:02:31,680 --> 00:02:34,280 Speaker 1: A and you haven't been hiding under a rock. Uh, 43 00:02:34,320 --> 00:02:38,240 Speaker 1: you know, in the fitness space, rumble boxing is. You 44 00:02:38,280 --> 00:02:41,120 Speaker 1: know everybody knows. I started with l A Boxing. I 45 00:02:41,120 --> 00:02:44,680 Speaker 1: owned that, I owned UFC jim um and so you know, 46 00:02:44,720 --> 00:02:47,760 Speaker 1: I kind of grew up in the boxing space in 47 00:02:47,760 --> 00:02:51,760 Speaker 1: in fitness almost twenty years ago. And um, you know, 48 00:02:51,919 --> 00:02:55,200 Speaker 1: Rumbles is a lot different than l A Boxing. You know, 49 00:02:55,200 --> 00:02:58,560 Speaker 1: in l A Boxing we were taking professional fighters and 50 00:02:58,720 --> 00:03:01,440 Speaker 1: you know, having them put some urban people through kind 51 00:03:01,480 --> 00:03:04,920 Speaker 1: of the paces. Uh. This and Rumbles just kind of 52 00:03:05,280 --> 00:03:08,160 Speaker 1: you know, it's rumble boxing, but it also has bench 53 00:03:08,160 --> 00:03:12,119 Speaker 1: work and training as a type of hit product as well. Um. 54 00:03:12,360 --> 00:03:16,480 Speaker 1: So it's it's boxing and a nightclub, so lights are off, 55 00:03:17,560 --> 00:03:21,320 Speaker 1: lots of music and um in a great time. Hey Anthony, 56 00:03:21,320 --> 00:03:24,320 Speaker 1: it's Mike Lynch up in Boston. Great to chat with 57 00:03:24,360 --> 00:03:26,880 Speaker 1: you of your nine different brands. So what would you 58 00:03:27,040 --> 00:03:29,840 Speaker 1: say is the common thread, the common denominator between all 59 00:03:29,840 --> 00:03:31,600 Speaker 1: of them, I mean all of them, I think is 60 00:03:31,639 --> 00:03:35,120 Speaker 1: the diversity and the accessibility. Um, and I know those 61 00:03:35,160 --> 00:03:38,480 Speaker 1: are hot keywords now, but we started with that in 62 00:03:39,520 --> 00:03:43,000 Speaker 1: because it was Joseph pilates dying wish that the whole 63 00:03:43,040 --> 00:03:46,360 Speaker 1: world did pilates. And back then it really was you know, 64 00:03:46,440 --> 00:03:50,200 Speaker 1: kind of suburban, rich white women that did pilates. And 65 00:03:50,280 --> 00:03:53,480 Speaker 1: that wasn't Joe's dying wish was that those people just 66 00:03:53,560 --> 00:03:55,800 Speaker 1: did it or dancers did it. It was that the 67 00:03:55,840 --> 00:03:58,360 Speaker 1: whole world did it. And so Alison Beardsley that we 68 00:03:58,400 --> 00:04:02,600 Speaker 1: bought club plots from six years ago to start this journey. 69 00:04:02,960 --> 00:04:05,720 Speaker 1: That was also her wish. And so you know, we 70 00:04:05,800 --> 00:04:08,640 Speaker 1: made Plotti is accessible to the masses. That's how we're 71 00:04:08,640 --> 00:04:11,560 Speaker 1: able to open almost seven hundred stores and sell almost 72 00:04:11,600 --> 00:04:14,280 Speaker 1: a thousand locations in such a short period of time. 73 00:04:14,840 --> 00:04:18,359 Speaker 1: So we use that same accessibility for everyone. And you know, 74 00:04:18,480 --> 00:04:20,599 Speaker 1: some people say it's kind of like you need to 75 00:04:20,600 --> 00:04:23,279 Speaker 1: know how to sold cycle before you sold cycle, or 76 00:04:23,320 --> 00:04:25,400 Speaker 1: you need to know how to bury before you go 77 00:04:25,480 --> 00:04:29,680 Speaker 1: to berries Um, and you know, for us, it's you know, 78 00:04:29,760 --> 00:04:32,599 Speaker 1: the accessibility of you know, cycle bar being the first 79 00:04:32,640 --> 00:04:36,120 Speaker 1: place to come uh to learn indoor cycling and really 80 00:04:36,160 --> 00:04:39,840 Speaker 1: build that community and bond Um and that community was 81 00:04:39,880 --> 00:04:43,880 Speaker 1: shown obviously during COVID when UH you know our stores, 82 00:04:44,200 --> 00:04:48,080 Speaker 1: you know, all we're able to temporary close and then reopen, 83 00:04:48,520 --> 00:04:52,039 Speaker 1: and we still processed over four hundred and forty million 84 00:04:52,080 --> 00:04:55,360 Speaker 1: dollars almost a half a billion dollars in the pockets 85 00:04:55,360 --> 00:04:58,360 Speaker 1: of franchise ease while we are closed, because our close 86 00:04:58,440 --> 00:05:02,600 Speaker 1: knit community really supported our locations. So tell us more 87 00:05:02,600 --> 00:05:05,520 Speaker 1: about that, because because obviously, and this is like the 88 00:05:05,560 --> 00:05:09,560 Speaker 1: big existential question in many ways, you know, boutique fitness 89 00:05:09,640 --> 00:05:12,279 Speaker 1: was rocking along there for a while, and that was 90 00:05:12,360 --> 00:05:14,440 Speaker 1: really the subject of that conversation you and I had 91 00:05:14,480 --> 00:05:17,720 Speaker 1: back in seventeen. Was it was just you know, up 92 00:05:17,720 --> 00:05:20,720 Speaker 1: into the right for sure, everybody was getting into the business. 93 00:05:20,800 --> 00:05:24,360 Speaker 1: There was clearly a lot of expansion going on. Obviously, 94 00:05:24,800 --> 00:05:28,560 Speaker 1: COVID and the pandemic arrested that to some extent. What 95 00:05:28,680 --> 00:05:31,279 Speaker 1: have we learned about the boutique business in terms of 96 00:05:31,279 --> 00:05:34,240 Speaker 1: the economics of it, and and how do you see 97 00:05:34,240 --> 00:05:37,760 Speaker 1: the future playing out? You know, I I see it 98 00:05:37,800 --> 00:05:40,560 Speaker 1: as a you know, COVID and I don't mean you know, 99 00:05:40,720 --> 00:05:45,200 Speaker 1: COVID as a pandemic, but COVID as it affected the business, 100 00:05:45,800 --> 00:05:48,640 Speaker 1: Um was really, ah, you know, kind of a pause 101 00:05:48,680 --> 00:05:51,320 Speaker 1: in the business for a year. Um, you know, a 102 00:05:51,360 --> 00:05:55,240 Speaker 1: blip in the radar, but the you know, our stores reopened, 103 00:05:55,240 --> 00:05:58,440 Speaker 1: the members came back. They're spending the same money they 104 00:05:58,480 --> 00:06:01,640 Speaker 1: were spending before. Uh, you know, they're coming back just 105 00:06:01,720 --> 00:06:04,680 Speaker 1: like they were before. And so you know, for as 106 00:06:05,200 --> 00:06:08,320 Speaker 1: the people that manage through you know, there's stats anywhere 107 00:06:08,400 --> 00:06:12,279 Speaker 1: from fifteen to twenty percent of you know, the industry 108 00:06:12,360 --> 00:06:16,159 Speaker 1: permanently closed. UM. You know, we know brands like Yoga 109 00:06:16,200 --> 00:06:20,120 Speaker 1: Works when BANKRFT or fly went bankrupt. UM. You know 110 00:06:20,200 --> 00:06:22,480 Speaker 1: we know about those, but there there was a lot 111 00:06:22,520 --> 00:06:26,280 Speaker 1: of others UM. You know, thousands or tens of thousands 112 00:06:26,320 --> 00:06:30,000 Speaker 1: of others UM. And so you know, we have a 113 00:06:30,080 --> 00:06:33,320 Speaker 1: lot of displaced members um that are coming in our 114 00:06:33,360 --> 00:06:35,320 Speaker 1: doors now that you know, maybe they were a Yoga 115 00:06:35,320 --> 00:06:37,640 Speaker 1: Works member, now they're looking to go to you know, 116 00:06:37,800 --> 00:06:41,039 Speaker 1: Y six their Flywheel member. UM. You know, we took 117 00:06:41,080 --> 00:06:44,039 Speaker 1: over a lot of Flywheel locations and converted them into 118 00:06:44,040 --> 00:06:47,240 Speaker 1: cycle bars. So you have, you know, these displaced members 119 00:06:47,240 --> 00:06:50,880 Speaker 1: that are coming back and look into cycle UM. You know, 120 00:06:50,960 --> 00:06:54,560 Speaker 1: so the business for those that you know came out 121 00:06:54,680 --> 00:06:58,320 Speaker 1: the other side of it, UM, you know, is actually 122 00:06:59,160 --> 00:07:01,800 Speaker 1: a bit of a better place, UM, because we also 123 00:07:01,880 --> 00:07:04,159 Speaker 1: have a new group of people, which are you know, 124 00:07:04,200 --> 00:07:07,320 Speaker 1: people that have now decided that health and wellness is 125 00:07:07,320 --> 00:07:10,600 Speaker 1: important to them. You know, I think some people you 126 00:07:10,640 --> 00:07:14,840 Speaker 1: know before weren't making that a priority. In the pandemic, 127 00:07:15,280 --> 00:07:18,320 Speaker 1: you know, scared a lot of people as it should 128 00:07:18,320 --> 00:07:21,840 Speaker 1: have UM, and they now are starting to focus. It 129 00:07:21,960 --> 00:07:25,440 Speaker 1: was like, Hey, whenever that Jim opens up down the street, 130 00:07:25,880 --> 00:07:28,320 Speaker 1: you know, I'm going to go sign up there because 131 00:07:28,880 --> 00:07:31,360 Speaker 1: you know, now I've been walking in the neighborhood or 132 00:07:31,440 --> 00:07:34,040 Speaker 1: you know, I've been doing something. And so you know, 133 00:07:34,080 --> 00:07:36,920 Speaker 1: we're seeing displaced members from other brands that went bankrupt, 134 00:07:37,560 --> 00:07:39,680 Speaker 1: you know, and didn't make it through the storm, and 135 00:07:39,760 --> 00:07:42,320 Speaker 1: we're seeing new groups of people that maybe haven't worked 136 00:07:42,360 --> 00:07:45,680 Speaker 1: out in five years or ten years or something. Uh, 137 00:07:45,720 --> 00:07:48,800 Speaker 1: and they're coming in And so I guess that earlier 138 00:07:48,880 --> 00:07:52,440 Speaker 1: our accessibility model is to welcome all those people uh 139 00:07:52,480 --> 00:07:56,080 Speaker 1: into our community and and treating my family. It's one 140 00:07:56,120 --> 00:08:01,120 Speaker 1: thing we're streaming, it's another thing for in studio training. 141 00:08:01,760 --> 00:08:06,080 Speaker 1: How do you find a balance between that because a 142 00:08:06,200 --> 00:08:10,760 Speaker 1: streaming is popular, but obviously in person is also popular. 143 00:08:10,840 --> 00:08:13,880 Speaker 1: How do you balance that? Yeah, I think if you 144 00:08:13,920 --> 00:08:18,720 Speaker 1: look at the numbers, overwhelmingly people love the in person experience. Right, 145 00:08:18,760 --> 00:08:22,400 Speaker 1: there's we we get excited or markets get excited, or 146 00:08:22,440 --> 00:08:24,960 Speaker 1: people like to talk about you know, the in home 147 00:08:25,080 --> 00:08:27,280 Speaker 1: or Peloton or those types of things. When when you 148 00:08:27,320 --> 00:08:29,760 Speaker 1: look at the amount of dollars and people that work 149 00:08:29,760 --> 00:08:33,040 Speaker 1: out you know indoor in studio versus the people that 150 00:08:33,120 --> 00:08:36,200 Speaker 1: do it at home, Um, you know, stractically different. Right. 151 00:08:36,760 --> 00:08:40,559 Speaker 1: Peloton has done a good job in the small at 152 00:08:40,600 --> 00:08:43,960 Speaker 1: home space, right, And so you know we tend to 153 00:08:44,000 --> 00:08:47,080 Speaker 1: focus there. But I mean Jane Fonda's you know, workout 154 00:08:47,120 --> 00:08:50,120 Speaker 1: tape is still you know, very popular for the last 155 00:08:50,400 --> 00:08:53,679 Speaker 1: fifty years. Um. So you know, in home has been 156 00:08:53,720 --> 00:08:55,880 Speaker 1: around for a while. I think it's more in the 157 00:08:55,920 --> 00:08:59,120 Speaker 1: news now, um, and more people are you know, are 158 00:08:59,200 --> 00:09:02,760 Speaker 1: looking at it. But the reality is, you know, I 159 00:09:02,840 --> 00:09:06,320 Speaker 1: said this earlier on a on a different interview on 160 00:09:06,440 --> 00:09:09,440 Speaker 1: Fox News, I said, the in home kitchen did not 161 00:09:09,559 --> 00:09:13,280 Speaker 1: kill the restaurant industry. Um, nor is the stationary bike 162 00:09:13,440 --> 00:09:17,160 Speaker 1: going to kill the fitness industry. Right. It's just, um, 163 00:09:17,200 --> 00:09:20,560 Speaker 1: it's not there. And so we as a company have 164 00:09:20,640 --> 00:09:23,359 Speaker 1: an omni channel approach. We have our own full production 165 00:09:23,440 --> 00:09:26,080 Speaker 1: facility that we own across the street or own cruise 166 00:09:26,120 --> 00:09:29,199 Speaker 1: and noting bays and you know all of that. Uh, 167 00:09:29,240 --> 00:09:32,240 Speaker 1: and we have it across nine brands, right, So there's 168 00:09:32,240 --> 00:09:35,600 Speaker 1: really nobody out there, in my opinion, more well positioned 169 00:09:36,080 --> 00:09:39,000 Speaker 1: to you know, be in the digital space than us 170 00:09:39,160 --> 00:09:42,040 Speaker 1: with nine great brands and different modalities, not just one 171 00:09:42,200 --> 00:09:45,280 Speaker 1: or two. Um, you know. And so we will we 172 00:09:45,320 --> 00:09:48,520 Speaker 1: will continue to push in the digital space, but really 173 00:09:48,559 --> 00:09:52,280 Speaker 1: as an omni channel, you know type approach for our 174 00:09:52,320 --> 00:09:54,800 Speaker 1: members to be able to work out in the physical world. 175 00:09:54,880 --> 00:09:56,559 Speaker 1: But you know, hey, if you need to work out 176 00:09:56,600 --> 00:09:58,840 Speaker 1: at four am, we got you. If you need to 177 00:09:58,840 --> 00:10:01,920 Speaker 1: work out at ten o'clock, you know, in a hotel 178 00:10:02,000 --> 00:10:05,240 Speaker 1: room somewhere because they're traveling, we we won't extend that 179 00:10:05,320 --> 00:10:08,360 Speaker 1: community outside of our four wall into the into the 180 00:10:08,360 --> 00:10:10,800 Speaker 1: digital space as well. Anthony White, why do you think 181 00:10:10,880 --> 00:10:13,600 Speaker 1: the boutiques are more and more attractive in the big 182 00:10:13,600 --> 00:10:18,000 Speaker 1: box jims? Just because I think it's a specialized community, right. 183 00:10:18,160 --> 00:10:21,680 Speaker 1: It's you know, I used to write Harley's for twenty 184 00:10:21,760 --> 00:10:24,319 Speaker 1: years before I before I had three year old, the 185 00:10:24,360 --> 00:10:27,800 Speaker 1: six year old daughter, um, and uh, you know it 186 00:10:27,920 --> 00:10:31,040 Speaker 1: was you know, you had harley Owners groups and you know, 187 00:10:31,280 --> 00:10:33,920 Speaker 1: people that want to be a part of that, right, Uh, 188 00:10:33,960 --> 00:10:37,319 Speaker 1: you know, you have the Porsche Club of America. Um, 189 00:10:37,360 --> 00:10:39,440 Speaker 1: you know, and when you meet with When you go 190 00:10:39,520 --> 00:10:42,160 Speaker 1: to a car show, you walk around and pick out 191 00:10:42,200 --> 00:10:44,760 Speaker 1: the cars you like, right. But when you go to 192 00:10:44,840 --> 00:10:49,119 Speaker 1: a Porsche Club of America car show, you love Porsches 193 00:10:49,200 --> 00:10:51,760 Speaker 1: and you look around at all Porsches, right, And so 194 00:10:52,120 --> 00:10:55,600 Speaker 1: what you know when you go into a big box Jim, 195 00:10:56,160 --> 00:10:58,000 Speaker 1: some people are there to run on a treadmill. Some 196 00:10:58,120 --> 00:11:00,920 Speaker 1: there are there to walk around looking for a date, 197 00:11:00,960 --> 00:11:02,800 Speaker 1: and they don't even want to work out, right, some 198 00:11:02,960 --> 00:11:05,360 Speaker 1: are some are there to lift weights, some are there 199 00:11:05,360 --> 00:11:07,800 Speaker 1: to do whatever. When you go into a cycle bar, 200 00:11:07,920 --> 00:11:09,800 Speaker 1: the one thing you know is that there are fifty 201 00:11:09,840 --> 00:11:13,360 Speaker 1: people in that room dedicated to endoored cycling. Right. You 202 00:11:13,440 --> 00:11:15,800 Speaker 1: go to Club Pilates, there are twelve people on the 203 00:11:15,840 --> 00:11:19,920 Speaker 1: reformer that love pilates. When you walk into a big 204 00:11:19,960 --> 00:11:23,000 Speaker 1: box gym, how many people like pilates? How many people 205 00:11:23,000 --> 00:11:26,120 Speaker 1: are like you? And so you know what? Like I said, 206 00:11:26,120 --> 00:11:28,160 Speaker 1: When you go to a Harley rally, you know everyone 207 00:11:28,200 --> 00:11:32,080 Speaker 1: loves Harley's. You go to Sturgis, you know everyone loves motorcycles, right, 208 00:11:32,200 --> 00:11:37,240 Speaker 1: and so it's that specialized community that boutique has where 209 00:11:37,240 --> 00:11:41,000 Speaker 1: you know everyone in there. Um you know, is interested 210 00:11:41,000 --> 00:11:44,040 Speaker 1: in what you're interested in. And of course they you know, 211 00:11:44,080 --> 00:11:47,000 Speaker 1: they expect more classes in that they expect the level 212 00:11:47,000 --> 00:11:51,959 Speaker 1: of teaching an engagement to be higher. They expect the cleanliness, um, 213 00:11:52,000 --> 00:11:54,880 Speaker 1: you know, to be higher. Um. You know when COVID 214 00:11:54,960 --> 00:11:57,839 Speaker 1: hit telling us we had to clean our our locations 215 00:11:57,920 --> 00:12:01,400 Speaker 1: properly with something are you know? Our members expected that. 216 00:12:01,640 --> 00:12:03,560 Speaker 1: You know, they're paying more, they want to get more 217 00:12:04,160 --> 00:12:06,800 Speaker 1: um and so you know that that's where I think 218 00:12:06,840 --> 00:12:11,040 Speaker 1: the stickiness of boutique is so Anthony, I want to 219 00:12:11,040 --> 00:12:13,440 Speaker 1: go back to something you alluded to earlier, which is 220 00:12:13,480 --> 00:12:16,640 Speaker 1: this notion of the accessibility and and to dig a 221 00:12:16,679 --> 00:12:20,240 Speaker 1: little deeper into the demographics here, because you know, boutique 222 00:12:20,240 --> 00:12:23,680 Speaker 1: fitness I think, for for some time and and and 223 00:12:23,720 --> 00:12:27,000 Speaker 1: again you referenced this earlier was seen, as you know, 224 00:12:27,240 --> 00:12:33,240 Speaker 1: relatively elite, relatively narrow in its not only in its appeal, 225 00:12:33,280 --> 00:12:36,880 Speaker 1: but it's in its accessibility because the price point was 226 00:12:36,960 --> 00:12:39,800 Speaker 1: so high. What have you seen What have you guys 227 00:12:39,880 --> 00:12:44,000 Speaker 1: done to broaden that out? Because that's ultimately good business. 228 00:12:44,000 --> 00:12:46,480 Speaker 1: You need more people, right and but you also need 229 00:12:46,480 --> 00:12:49,480 Speaker 1: to make a living. So so what's the what's the balance. 230 00:12:49,559 --> 00:12:52,880 Speaker 1: How do you figure out how to to widen the 231 00:12:53,000 --> 00:12:57,120 Speaker 1: appeal while still making money? Yeah, so you know we 232 00:12:57,120 --> 00:12:59,360 Speaker 1: we did that in our pricing. Um. If you kind 233 00:12:59,360 --> 00:13:01,479 Speaker 1: of look at the what all call kind of Manhattan 234 00:13:01,520 --> 00:13:06,840 Speaker 1: model of boutique right where classes are thirty, it makes 235 00:13:06,880 --> 00:13:10,560 Speaker 1: it less accessible, right. Um, you know our price points 236 00:13:10,559 --> 00:13:14,320 Speaker 1: are less than that. Um. We sell in a reoccurring 237 00:13:14,520 --> 00:13:18,640 Speaker 1: four pack, eight pack and unlimited across the country. We 238 00:13:18,760 --> 00:13:23,079 Speaker 1: launched the X pass uh this last year, which simply 239 00:13:23,120 --> 00:13:25,680 Speaker 1: put allows you know, you to sign up at one 240 00:13:25,760 --> 00:13:28,760 Speaker 1: brand and go to all nine brands. UM, so you're 241 00:13:28,840 --> 00:13:30,920 Speaker 1: you're not having you know you and I know that 242 00:13:31,000 --> 00:13:35,120 Speaker 1: you know people have multiple boutique um, you know memberships 243 00:13:35,160 --> 00:13:38,959 Speaker 1: to kind of have that accessibility to different modalities. UM. 244 00:13:39,040 --> 00:13:41,920 Speaker 1: We're the only people in the business that allow you 245 00:13:41,960 --> 00:13:45,680 Speaker 1: to sign up at one modality and get nine right. Um. 246 00:13:45,720 --> 00:13:48,200 Speaker 1: Not to mention almost two thousand locations to go do 247 00:13:48,320 --> 00:13:52,720 Speaker 1: those nine in states, so you know, just to sheer 248 00:13:53,160 --> 00:13:58,360 Speaker 1: kind of you know, location density. Um that we have 249 00:13:58,640 --> 00:14:03,000 Speaker 1: allows people to kind of snack and partake across the 250 00:14:03,000 --> 00:14:05,520 Speaker 1: different brands as well. So do you think just to 251 00:14:05,559 --> 00:14:07,800 Speaker 1: follow on that, I mean, is this where the broader 252 00:14:07,840 --> 00:14:10,439 Speaker 1: business is going. This is like an industry question more 253 00:14:10,440 --> 00:14:14,880 Speaker 1: than anything. Where there will be consolidation is their strength. 254 00:14:14,920 --> 00:14:16,720 Speaker 1: And I mean obviously you're voting with your feet to 255 00:14:16,760 --> 00:14:19,720 Speaker 1: some extent this notion of strength and scale. But do 256 00:14:19,760 --> 00:14:25,120 Speaker 1: you imagine that you'll see consolidation both with big companies 257 00:14:25,160 --> 00:14:28,520 Speaker 1: and platforms like you and Equinox and others continuing to 258 00:14:28,640 --> 00:14:32,560 Speaker 1: expand modalities? Will there be other competitors you think who 259 00:14:32,600 --> 00:14:36,600 Speaker 1: will come up in terms of offering a variety like 260 00:14:36,680 --> 00:14:40,840 Speaker 1: play this out over the next you know, five ten years. Yeah, No, 261 00:14:40,960 --> 00:14:43,880 Speaker 1: I don't. I think it will be tough to do. Um. 262 00:14:44,120 --> 00:14:47,280 Speaker 1: I I know what the journey is like, the kind 263 00:14:47,280 --> 00:14:52,400 Speaker 1: of you know, births and raise nine kids so far. Um. 264 00:14:52,440 --> 00:14:54,800 Speaker 1: You know, there's nobody else out there that has more 265 00:14:54,840 --> 00:14:57,880 Speaker 1: than one modality. So I think it would be hard 266 00:14:57,920 --> 00:15:00,840 Speaker 1: in the boutique space. Uh. The is obviously a couple 267 00:15:00,840 --> 00:15:03,280 Speaker 1: of people in the boutique space they're saying, you know, 268 00:15:03,400 --> 00:15:05,880 Speaker 1: we've got a second, we've got a third, and you 269 00:15:05,920 --> 00:15:08,880 Speaker 1: know we're going to do what exposed doing. Um, but 270 00:15:09,000 --> 00:15:11,360 Speaker 1: I know what that path looks like. And you know 271 00:15:11,520 --> 00:15:18,000 Speaker 1: it's hard to buy good brands staff those brands do scale. Uh, 272 00:15:18,000 --> 00:15:20,400 Speaker 1: and do it well. And then you know, it is 273 00:15:20,520 --> 00:15:23,920 Speaker 1: really like having nine kids. They're all yours, they came 274 00:15:23,960 --> 00:15:26,280 Speaker 1: from the same parents, but they're all a little bit different. 275 00:15:26,720 --> 00:15:29,760 Speaker 1: And so you know, cycle bar is not exactly light 276 00:15:29,800 --> 00:15:32,920 Speaker 1: club bloodies. So these aren't like you can just buy 277 00:15:32,960 --> 00:15:36,400 Speaker 1: them and and rubb or stamp them out. Um. So 278 00:15:36,640 --> 00:15:40,320 Speaker 1: I don't see you know, competitors even if they wanted 279 00:15:40,360 --> 00:15:45,160 Speaker 1: to having the ability or do it well because we're 280 00:15:45,200 --> 00:15:48,400 Speaker 1: you know, you know, we talked for plus years ago 281 00:15:48,520 --> 00:15:51,160 Speaker 1: and this was the mission then, right, which means people 282 00:15:51,200 --> 00:15:56,280 Speaker 1: are four years behind in thousands of locations behind where 283 00:15:56,280 --> 00:15:59,640 Speaker 1: they sit today. Right. So, um, there may be on 284 00:15:59,720 --> 00:16:02,000 Speaker 1: the try and come back. We've seen the big box 285 00:16:02,080 --> 00:16:05,480 Speaker 1: operators try and do boutique. We've never seen you know 286 00:16:05,640 --> 00:16:09,480 Speaker 1: that really be effective. Um. You know it is a 287 00:16:09,480 --> 00:16:11,720 Speaker 1: different space. You know, you won't see me going and 288 00:16:11,760 --> 00:16:16,560 Speaker 1: trying to operate at square footbox. Um, you know that 289 00:16:16,680 --> 00:16:19,200 Speaker 1: this is not what we do. And so it is 290 00:16:19,240 --> 00:16:22,520 Speaker 1: a it is a very specialized, you know kind of 291 00:16:22,560 --> 00:16:26,920 Speaker 1: piece of the business. You just began public trading on July. 292 00:16:28,440 --> 00:16:32,360 Speaker 1: What focus has changed for the company? How now do 293 00:16:32,440 --> 00:16:38,880 Speaker 1: you structure the business? Because you now are publicly training. Yeah. 294 00:16:38,920 --> 00:16:41,800 Speaker 1: I mean, look, there's there's definitely um, you know, it's 295 00:16:41,800 --> 00:16:46,080 Speaker 1: been two days, three days, so they're definitely still very 296 00:16:46,200 --> 00:16:49,560 Speaker 1: new uh at getting all that you know figured out 297 00:16:49,840 --> 00:16:52,320 Speaker 1: and worked out. But you know, I will tell you 298 00:16:52,400 --> 00:16:57,760 Speaker 1: I have a a new found uh fire um in vigor. 299 00:16:58,040 --> 00:17:01,680 Speaker 1: You would think that I was back to one brand 300 00:17:01,720 --> 00:17:05,240 Speaker 1: and trying to survive mode because you know, I take 301 00:17:06,320 --> 00:17:10,360 Speaker 1: being public very seriously. It's a new exciting piece of 302 00:17:10,400 --> 00:17:14,280 Speaker 1: the journey and a milestone for the company. UM. And 303 00:17:14,480 --> 00:17:19,240 Speaker 1: you know, we're here to you know, provide shareholder value. UM. 304 00:17:19,280 --> 00:17:23,160 Speaker 1: You know obviously I'm I'm a large shareholder of the business. UM. 305 00:17:23,200 --> 00:17:26,879 Speaker 1: So it you know, provides value for myself and you know, 306 00:17:26,960 --> 00:17:29,919 Speaker 1: and I love to compete um. And so this is 307 00:17:29,960 --> 00:17:33,760 Speaker 1: just kind of another arena now that we're able to 308 00:17:33,800 --> 00:17:38,120 Speaker 1: compete in. But it is, uh, it is definitely fired. 309 00:17:38,200 --> 00:17:43,120 Speaker 1: Me back up on another level, I feel like I'm 310 00:17:43,160 --> 00:17:47,520 Speaker 1: ten years younger, um, you know, doing doing interviews like 311 00:17:47,560 --> 00:17:49,399 Speaker 1: this at seven thirty in the morning and at a 312 00:17:49,440 --> 00:17:53,440 Speaker 1: five am conference call, and and I'm I'm ready to go. 313 00:17:54,320 --> 00:17:56,600 Speaker 1: The elephant the room, of course is COVID and the 314 00:17:56,720 --> 00:18:01,320 Speaker 1: word that everyone fears now is surge. Should a surge come, 315 00:18:01,440 --> 00:18:03,800 Speaker 1: what have you learned during the last eighteen months or 316 00:18:03,840 --> 00:18:07,000 Speaker 1: so that will prepare you for a potential another sort 317 00:18:07,000 --> 00:18:10,919 Speaker 1: of pause button. Yeah, so you know, it's a good question. 318 00:18:11,000 --> 00:18:16,520 Speaker 1: We you know, we've been watching the you know, delta variant. Uh, 319 00:18:16,680 --> 00:18:20,399 Speaker 1: you know, in the stats and you know media and 320 00:18:20,520 --> 00:18:24,040 Speaker 1: stuff around that. Um, we haven't seen an effect yet 321 00:18:24,560 --> 00:18:28,040 Speaker 1: in cancelations or freezes. We're not seeing that in our 322 00:18:28,160 --> 00:18:31,000 Speaker 1: numbers anywhere. And we're tracking that on a week by 323 00:18:31,080 --> 00:18:34,520 Speaker 1: week basis, um. And you know, we know we know 324 00:18:34,600 --> 00:18:38,440 Speaker 1: what that looks like when you know, when COVID was coming. Um, 325 00:18:38,480 --> 00:18:43,440 Speaker 1: you know, we're fully prepared our franchise, these are fully prepared. Um. 326 00:18:43,480 --> 00:18:46,600 Speaker 1: You know, we didn't know COVID was was coming obviously 327 00:18:47,320 --> 00:18:49,320 Speaker 1: last year, and we didn't know what it was going 328 00:18:49,359 --> 00:18:52,560 Speaker 1: to do to our business. I mean, we closed plus 329 00:18:52,560 --> 00:18:56,720 Speaker 1: stores in a you know, two week period of time. UM. 330 00:18:56,760 --> 00:18:58,680 Speaker 1: You know. But the good news is is that, you know, 331 00:18:59,080 --> 00:19:02,600 Speaker 1: since COVID, we still opened three hundred plus locations and 332 00:19:02,640 --> 00:19:07,040 Speaker 1: we opened over two hundred forty locations during when we 333 00:19:07,040 --> 00:19:10,000 Speaker 1: were in the tick of COVID. UM, so you know, 334 00:19:10,160 --> 00:19:12,399 Speaker 1: we know we can still grow during COVID. We know, 335 00:19:12,480 --> 00:19:16,400 Speaker 1: franchisees still want to open during COVID. Like I said, 336 00:19:16,440 --> 00:19:20,760 Speaker 1: we processed four hundred and forty million dollars during COVID. 337 00:19:21,200 --> 00:19:23,560 Speaker 1: We did that on the backs of you know, digital 338 00:19:23,920 --> 00:19:28,760 Speaker 1: indoor and outdoor, and so you know, our approach then, um, 339 00:19:28,760 --> 00:19:32,200 Speaker 1: which was kind of an emergency response approach, was let's 340 00:19:32,200 --> 00:19:35,760 Speaker 1: convert all our physical members over to the digital space 341 00:19:35,800 --> 00:19:39,000 Speaker 1: continue to service them, which we still delivered twenty million 342 00:19:39,040 --> 00:19:43,560 Speaker 1: workouts in so um, you know, we just kind of 343 00:19:43,600 --> 00:19:47,520 Speaker 1: dimmed the lights on physical and brighten the lights on 344 00:19:47,600 --> 00:19:51,479 Speaker 1: digital and then just did the inverse of that, um, 345 00:19:51,520 --> 00:19:54,040 Speaker 1: you know, earlier this year, and now we have you know, 346 00:19:54,119 --> 00:19:57,800 Speaker 1: everyone back on our physical platform. So UM, not that 347 00:19:57,880 --> 00:19:59,760 Speaker 1: I want to go through it again or anybody wants 348 00:19:59,800 --> 00:20:03,280 Speaker 1: to go through it again, but we are definitely way 349 00:20:03,359 --> 00:20:07,400 Speaker 1: better positioned, uh, and we have the experience of doing it, 350 00:20:07,800 --> 00:20:11,159 Speaker 1: and so you know we uh, we don't wish for 351 00:20:11,200 --> 00:20:15,040 Speaker 1: a surge, we don't wish for a pause button. UM, 352 00:20:15,080 --> 00:20:19,520 Speaker 1: but I guarantee you we are well more prepared here 353 00:20:19,560 --> 00:20:22,040 Speaker 1: at the corporate office, well more prepared out in the 354 00:20:22,080 --> 00:20:25,480 Speaker 1: field with our franchisees. And look at if we went 355 00:20:25,520 --> 00:20:28,520 Speaker 1: through the first COVID not knowing how bad it was 356 00:20:28,560 --> 00:20:30,800 Speaker 1: going to be and not having a playbook for it. 357 00:20:30,960 --> 00:20:33,960 Speaker 1: And you know, we had zero permanently closed stores going 358 00:20:34,000 --> 00:20:37,280 Speaker 1: into COVID, we had zero permanently closed stores coming out 359 00:20:37,320 --> 00:20:39,520 Speaker 1: of COVID. If we were able to do that with 360 00:20:39,720 --> 00:20:44,119 Speaker 1: you know, with no notice and no playbook, um, you know, 361 00:20:44,160 --> 00:20:47,640 Speaker 1: we're very well positioned today to do it with notice 362 00:20:47,840 --> 00:20:50,840 Speaker 1: and a playbook, with the team that you know has 363 00:20:50,840 --> 00:20:53,679 Speaker 1: been through the paces before. All right, So, Anthony, as 364 00:20:53,680 --> 00:20:56,600 Speaker 1: we wrap up here, I have a question you may 365 00:20:56,640 --> 00:20:58,439 Speaker 1: or may not want to answer, because you know you 366 00:20:58,480 --> 00:21:02,120 Speaker 1: do have these nine children in some ways, like what's 367 00:21:02,160 --> 00:21:11,000 Speaker 1: your workout? Yes, exactly what's your jam? Oh? Thank god 368 00:21:11,040 --> 00:21:13,280 Speaker 1: nobody asked me this. Between my two girls, you know, 369 00:21:14,960 --> 00:21:19,480 Speaker 1: they're both extra special in their own way, but very different, right. Uh. 370 00:21:19,640 --> 00:21:23,640 Speaker 1: I mean, look it is you know for me, Um, 371 00:21:24,040 --> 00:21:26,399 Speaker 1: you know, if I had to choose between the nine, 372 00:21:26,480 --> 00:21:29,040 Speaker 1: it's really not about the brands. For me, it's really 373 00:21:29,080 --> 00:21:32,960 Speaker 1: about the modality. Uh. That speaks to me. And you know, 374 00:21:33,080 --> 00:21:35,720 Speaker 1: my dad grew up in Philly. I grew up thinking 375 00:21:35,840 --> 00:21:39,639 Speaker 1: Rocky was a real person, um, you know, and obviously 376 00:21:40,080 --> 00:21:43,239 Speaker 1: cut my teeth with l a boxing and so you know, 377 00:21:43,320 --> 00:21:47,840 Speaker 1: I'm definitely passionate about the boxing modality. Um, you know 378 00:21:48,160 --> 00:21:51,520 Speaker 1: I do for my basic workout, I get up early 379 00:21:51,520 --> 00:21:53,800 Speaker 1: in the morning and I you know, I train at 380 00:21:54,200 --> 00:21:58,360 Speaker 1: five in the morning doing you know, stuff like flipping 381 00:21:58,359 --> 00:22:03,080 Speaker 1: tires and pushing sleds and you know, lifting ridiculous types 382 00:22:03,119 --> 00:22:06,119 Speaker 1: of weight off of my chest. Um so I do 383 00:22:06,200 --> 00:22:09,159 Speaker 1: that very early in the morning. But but out of 384 00:22:09,200 --> 00:22:13,960 Speaker 1: our modalities, um, you know, boxing is has always been, 385 00:22:14,560 --> 00:22:17,439 Speaker 1: has always been my favorite. That's out there right, all right, 386 00:22:17,520 --> 00:22:19,840 Speaker 1: good answer, good, it's good, honest answer. I like that. 387 00:22:20,240 --> 00:22:22,119 Speaker 1: You know. It's sort of like, you know, when you 388 00:22:22,160 --> 00:22:23,840 Speaker 1: go to a restaurant, you're like, what, you know, what 389 00:22:23,880 --> 00:22:26,040 Speaker 1: do you recommend? They're like it's all good. You know, 390 00:22:26,240 --> 00:22:28,639 Speaker 1: I hate that, you know, It's like people need to 391 00:22:28,640 --> 00:22:30,760 Speaker 1: make a choice, you know what you like, like, don't 392 00:22:30,920 --> 00:22:36,240 Speaker 1: just don't get the ribs? Exactly, exactly, exactly, all right, Anthony, 393 00:22:36,240 --> 00:22:38,080 Speaker 1: guys are good to catch up with you, founder CEO 394 00:22:38,160 --> 00:22:43,120 Speaker 1: of Exponential Fitness, newly publicly traded UH and clearly growing 395 00:22:43,240 --> 00:22:47,560 Speaker 1: amid this resurgence as it were, in the fitness space 396 00:22:47,600 --> 00:22:50,320 Speaker 1: and obviously a very different world from when we first met. 397 00:22:50,359 --> 00:22:52,920 Speaker 1: So Anthony, thanks a lot. Good luck, all right, thank 398 00:22:52,960 --> 00:22:55,439 Speaker 1: you all well, Anthony, bless you man. If I'm flipping 399 00:22:55,480 --> 00:23:00,879 Speaker 1: the tires because I ran over and U. This is 400 00:23:01,040 --> 00:23:05,399 Speaker 1: the Bloomberg Business of Sports podcast Michael Barr. Find me 401 00:23:05,480 --> 00:23:07,919 Speaker 1: on Twitter at Big Bar Sports, and I'm Lynchy. I'm 402 00:23:07,920 --> 00:23:09,639 Speaker 1: getting out of the chair as soon as we finish 403 00:23:09,720 --> 00:23:12,439 Speaker 1: this interview. You can follow me at Lynchy w CBV. 404 00:23:12,840 --> 00:23:15,440 Speaker 1: Find me Jason Kelly at Jason Kelly News. We're here 405 00:23:15,440 --> 00:23:18,080 Speaker 1: each and every Monday, Wednesday and Thursday talking about the 406 00:23:18,080 --> 00:23:22,080 Speaker 1: world money, fitness and sports. You know, Jason has built 407 00:23:22,160 --> 00:23:26,040 Speaker 1: like Spider Man. Just cut. You're listening to Bloomberg Business 408 00:23:26,080 --> 00:23:29,119 Speaker 1: of Sports on Bloomberg Radio around the world and online 409 00:23:29,160 --> 00:23:30,840 Speaker 1: wherever you get your podcasts.