interview CRUNCH FITNESS T


he original chain of 20 Crunch health clubs was developed by Doug Levine in the 90s and known for its unusual classes: pole dancing, bicycle yoga, co-ed wrestling and


‘Abs, Thighs and Gossip’ sessions run by a drag queen. Levine sold out to Bally Total Fitness for US$90m in 2001 and,


in 2005, the chain was sold on to Angelo Gordon & Co private equity for US$45m. Crunch fi led for bankruptcy in May 2009, when it was bought by Mastrov’s New Evolution Ventures (NeV). NeV has since launched a Crunch franchise and Crunch


budget clubs. Mastrov says these are priced at between US$10 and US$20 a month. “We’ve built and opened three and have another three in construction,” he says. “We’ve also begun selling franchises and have quite a few sold already. We’ve launched Crunch on a global basis, beginning in Australia, and we’re looking at going into Europe over the next six to 12 months.” Of the full-service Crunch clubs, Mastrov says: “We have 24 of


the originals and have opened quite a few new clubs in the last six months; we have four or fi ve in construction and are still opening in all the major cities: Miami, New York, LA and San Francisco.”


How team members look is also


important, he adds: “We’ve created some very interesting uniforms that emit the cool, funky brand we’re developing.”


tuning into the fans Although the first club doesn’t have a spa, Mastrov says two of the Russian clubs will, as will others where space allows. “I really enjoy the spa business,” he says. “I think it has great synergies with our industry.” Hard Candy spas will be run under


the M brand. “We’re still firming up what this will mean,” says Mastrov, “but it will be unique and different. Madonna has definite views on spas and has more experience of being in and out of them than anyone I’ve ever met. “We’re looking for a fairly signifi cant chunk of real estate for the spas –


around 500sq m to 700sq m. They’ll be multi-room and multi-faceted, with a very high-end fi t out,” he adds. When it comes to marketing, Mastrov


says the team intends to harness the power of social media: “We plan to let Madonna’s fans experience what we’re building, to get their feedback and get them integrated into the brand,” he says.


“The fans in Mexico have a different way of looking at things from the fans in Russia and London, so the social media approach will be fi ne-tuned to this. “We plan to take the tens of millions


of fans she has on a global basis and talk to and integrate them into our strategy, understanding from them what they expect, what they want and what we can do better. “The beauty of social media is that it’s


a way for people to voice their opinions and, at the same time, others can counter those opinions and say whether they agree or don’t agree. We’ve already had great feedback from people who’ve seen the fact that we’re launching – saying ‘it should be this’, ‘it should be that’, ‘we’d like to see this’ and so on. It’s fabulous to so quickly have your fi nger on the pulse of the community of people she speaks to.” I ask Mastrov how he plans to


handle Madonna’s legion of fans. “If fans want to see and tour the facility, we’re happy to host them,” he says.


“We have pro shops selling branded merchandise from her tours, as well as different and interesting things that come from the Madonna world. “In Mexico City we also have a


Mastrov is involved in the women-only Mrs.Sporty franchise with Steffi Graf


34


phenomenal juice bar with healthy food choices that Madonna has approved. It’s open to non-members and has a great


Read Health Club Management online at healthclubmanagement.co.uk/digital


Crunch is known for its unusual classes, such as AntiGravity Yoga (above)


outdoor deck so people can come and grab some food and healthy refreshments. So we’ve done a lot of interesting things to keep everybody in great shape and engaged, whether they’re interested in membership or just want to be in touch with a little bit of Madonna.” How much time will Madonna spend


on the venture? “She’s an extremely busy lady,” says Mastrov, “so it will be based on the time she has available, but she’s been very engaged. If her brand’s on it, she spends the time needed. She doesn’t delegate – she does it herself, which I really respect and appreciate. She’s given us great feedback to date and we’ve made adjustments to everything she’s commented on. She has a very sharp eye. “I think people are going to fi nd Hard


Candy very Madonna-esque – high touch, high feel, a cool environment with a hip, fun culture among the team delivering the experience. I think it will bring a fresh fl avour to health and fi tness. Looking more widely, I ask Mastrov where he sees the industry heading.


“We’re looking at a period of time where you have to be smart about how you manage your cost lines and work on your member acquisition areas,” he says, “but overall I think the business is holding its own. Most of the operators I talk to around the world are pretty pleased – comparing ourselves to other industries – that people are still valuing their health. It’s very important and an integral part of their life, and the fi tness industry has weathered the storm fairly well so far compared to most.”


healthclub@leisuremedia.com liz terry, editorial director


january 2011 © cybertrek 2011


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