| CBI Interview|
long-term goals are to grow the GGI brand around the world; help our franchisees become more profitable; and dominate the fitness industry in the years to come. Our philosophy is guided by these
goals, all of which demand that we balance the needs of our customers, associates, and owners. Identifying what was out of balance with GGI, and reme- dying that, has been my primary focus.
CBI: Tell us what you’ve accom- plished since becoming president. What progress have you made, thus far, in achieving your goals?
JS:During the past 18 months, we’ve completely rebuilt GGI’s technology platform and improved the level of
JS: Gold’s Gym Express was created in response to requests from our franchi- sees, who wanted a product to compete in the high-volume, low-price segment. Gold’s Gym Express is a $9.99-
$19.99-a-month gym with low labor costs. All Express clubs feature high- quality construction and design, our signature Cardio Cinema, unlimited guest passes, and a no-contract option. In addition, franchisees can choose to offer tanning, massage chairs, and a free training component. What differentiates us is the support
we provide that most low-cost players don’t offer, including the latest virtual training technology, advice from celebrity trainers, customized work- out programs, and comprehensive online tracking tools.
“The hospitality and fitness businesses … each have guests, facilities, sales departments, and a lot of competition, and rely heavily on great customer service and their ability to develop strong customer loyalty.”
service that we provide to our new and existing franchisees. This has included redoing Gold’s Gym University online; investing in a new franchise commu- nications platform; rebuilding our franchise sales systems; and revamping the Gold’s Gym Website. In addition, we’ve modified the
roles of our regional field managers; launched the Gold’s Gym Express concept; and introduced our new Gold’s Capital financing division to support our franchisees.
CBI: Let’s talk about those two additions for a moment. Can you tell us more about the Gold’s Gym Express clubs? What are their price points, what do they offer, and how do they differ from others in the economy segment?
32 Club Business Internat ional | JULY 2011 | Our brand can now expand in ways
that weren’t possible before, as this model works anywhere. Depending on the location and situation, franchisees can build a standalone Gold’s Gym Express or utilize it as part of a hub- and-spoke strategy.
CBI: And the new financing arm, Gold’s Gym Capital—what was the rationale for creating it? Will it aid your new franchisees and your existing ones, as well?
JS: Today, financing is the No. 1 impediment to growth in the industry. We’ve hired Chuck Lemar, the former president of Cybex Capital, to assist new and existing franchisees in obtaining financing for new operations, equipment financing, and renovations.
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CBI: You have an iconic, time- tested brand—one of the few in the industry. How have you managed to broaden your market, while maintaining brand integrity?
JS: Our founder, Joe Gold, was responsible for some of the earliest innovations in equipment and training, and, today, our iconic brand means so much to so many people around the world. We have the highest consumer awareness of any brand in the industry. More than ever, we’re focused on creating new offerings to help our members achieve their goals. We’ll continue to push the envelope on technology and innovation, whether that’s through our signature Cardio Cinema, our best-in-class customer- retention program, our new Max Burn Zone and Les Mills CX30 programs, or our new functional-training programs. Our “Know Your Own Strength”
campaign, which rolled out two years ago, this year evolved to become our “Stronger Than” campaign. It revolves around the notion of “redefining strength.” Strength refers not just to muscle, but also to inner strength, or the strength to get through tough times. This campaign has resonated strongly with consumers since we rolled it out in January.
CBI: Speaking of tough times, we’ve all just been through a painful economic downturn. How has the recession affected your corporate revenues and profitability since it began in 2007? How do you see a general economic rebound taking shape?
JS: After a couple of flat years in ’07 and ’08, GGI posted the two most successful years in the history of the company in 2009 and 2010. I’m confi- dent that we’ll continue to see strong growth moving forward as we continue to implement our business plan. We still have very high unemployment around the country, and the weakness of the dollar is a concern, but I believe we’re on track for a slow, extended recovery. I think the right question to ask is,
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