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- November 2004 (Revised September 2019)
- Background Note
The U.S. Health Club Industry in 2004
By: John R. Wells, Gabriel Ellsworth and Benjamin Weinstock
In 2004, the $16.8 billion U.S. health club industry continued its strong record of growth. There were almost 27,000 health clubs in the United States, up from 6,700 two decades earlier, and these clubs claimed 41 million members, over 14% of the U.S. population....
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Keywords:
Health Clubs;
Fitness;
Gyms;
Chain;
Weight Loss;
Obesity;
Exercise;
Personal Training;
Bally Total Fitness;
24 Hour Fitness;
YMCA;
Gold's Gym;
Curves;
Franchise;
Franchising;
Subscription;
Promotional Sales;
Promotions;
Fixed Costs;
Body;
Accrual Accounting;
Revenue Recognition;
Buildings and Facilities;
Business Growth and Maturation;
Business Model;
For-Profit Firms;
Trends;
Customers;
Demographics;
Age;
Income;
Private Equity;
Financing and Loans;
Profit;
Revenue;
Geographic Scope;
Multinational Firms and Management;
Health;
Nutrition;
Business History;
Employees;
Retention;
Human Capital;
Working Conditions;
Contracts;
Business or Company Management;
Goals and Objectives;
Growth and Development Strategy;
Markets;
Demand and Consumers;
Supply and Industry;
Industry Growth;
Industry Structures;
Operations;
Service Operations;
Franchise Ownership;
Private Ownership;
Public Ownership;
Problems and Challenges;
Sales;
Salesforce Management;
Situation or Environment;
Opportunities;
Nonprofit Organizations;
Welfare;
Sports;
Strategy;
Business Strategy;
Competition;
Competitive Strategy;
Consolidation;
Corporate Strategy;
Customization and Personalization;
Expansion;
Segmentation;
Hardware;
Health Industry;
United States
Wells, John R., Gabriel Ellsworth, and Benjamin Weinstock. "The U.S. Health Club Industry in 2004." Harvard Business School Background Note 705-445, November 2004. (Revised September 2019.)
- October 2016 (Revised January 2017)
- Background Note
The U.S. Health Club Industry, 2005–2016
By: John R. Wells and Gabriel Ellsworth
In 2015, the U.S. health-club industry generated revenues of $25.8 billion, up from $14.8 billion in 2004. Members of health clubs accounted for 17% of the population, up from 14%. The number of clubs had grown from 26,830 in 2004 to 36,180. In the process, the list of...
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Keywords:
Health Clubs;
Fitness;
Gyms;
Chain;
Weight Loss;
Obesity;
Exercise;
Personal Training;
Retention;
Bally Total Fitness;
24 Hour Fitness;
YMCA;
Gold's Gym;
Curves;
Franchise;
Franchising;
Subscription;
Promotional Sales;
Promotions;
Fixed Costs;
Body;
Business Ventures;
Strategy;
Health;
Investment;
Entertainment and Recreation Industry;
Health Industry;
United States
Wells, John R., and Gabriel Ellsworth. "The U.S. Health Club Industry, 2005–2016." Harvard Business School Background Note 717-421, October 2016. (Revised January 2017.)
- October 2016
- Case
The Quiet Ascension of LA Fitness
By: John R. Wells and Gabriel Ellsworth
In 2016, LA Fitness was the largest chain of non-franchised fitness clubs in North America, operating 676 clubs, serving 4.9 million members, and generating revenues of over $1.9 billion. Founded by Chinyol Yi, Louis Welch, and Paul Norris in 1984, the privately held...
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Keywords:
LA Fitness;
Health Clubs;
Fitness;
Gyms;
Chain;
Exercise;
Personal Training;
Retention;
Bally Total Fitness;
24 Hour Fitness;
Planet Fitness;
Buildings and Facilities;
Acquisition;
Business Growth and Maturation;
Business Model;
For-Profit Firms;
Customers;
Customer Focus and Relationships;
Customer Satisfaction;
Demographics;
Age;
Gender;
Income;
Residency;
Borrowing and Debt;
Capital;
Capital Structure;
Cash;
Cash Flow;
Cost;
Private Equity;
Financial Condition;
Financial Liquidity;
Financing and Loans;
Investment Return;
Price;
Profit;
Revenue;
Geographic Location;
Geographic Scope;
Multinational Firms and Management;
Business History;
Employees;
Recruitment;
Selection and Staffing;
Human Capital;
Contracts;
Business or Company Management;
Goals and Objectives;
Growth and Development Strategy;
Market Entry and Exit;
Operations;
Service Operations;
Leasing;
Private Ownership;
Problems and Challenges;
Sales;
Salesforce Management;
Situation or Environment;
Opportunities;
Sports;
Strategy;
Business Strategy;
Competition;
Competitive Strategy;
Competitive Advantage;
Corporate Strategy;
Expansion;
Segmentation;
Information Technology;
Mobile Technology;
Technology Platform;
Health Industry;
United States;
California;
Los Angeles
Wells, John R., and Gabriel Ellsworth. "The Quiet Ascension of LA Fitness." Harvard Business School Case 717-424, October 2016.
- November 2005 (Revised December 2016)
- Case
Bally Total Fitness (A): The Rise, 1962–2004
By: John R. Wells, Elizabeth A. Raabe and Gabriel Ellsworth
From a single, modest club in 1962, Bally Total Fitness had grown to become—in management’s words—the “largest and only nationwide commercial operator of fitness centers” in the United States in 2004. Bally had faced its share of challenges, but the last couple of...
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Keywords:
Bally Total Fitness;
Fitness;
Gyms;
Health Clubs;
Chain;
Securities And Exchange Commission;
Paul Toback;
Weight Loss;
Exercise;
Contracts;
Personal Training;
Retention;
Accounting;
Accounting Audits;
Accrual Accounting;
Finance;
Advertising;
Business Growth and Maturation;
Business Model;
For-Profit Firms;
Customers;
Customer Satisfaction;
Public Equity;
Financing and Loans;
Revenue;
Revenue Recognition;
Geographic Scope;
Multinational Firms and Management;
Health;
Nutrition;
Business History;
Lawsuits and Litigation;
Management;
Business or Company Management;
Goals and Objectives;
Growth and Development Strategy;
Marketing;
Operations;
Service Delivery;
Service Operations;
Public Ownership;
Problems and Challenges;
Business and Shareholder Relations;
Business Strategy;
Competition;
Corporate Strategy;
Expansion;
Segmentation;
Trends;
Cost Management;
Profit;
Growth and Development;
Leadership Style;
Five Forces Framework;
Private Ownership;
Opportunities;
Motivation and Incentives;
Competitive Strategy;
Health Industry;
United States;
Illinois;
Chicago
Wells, John R., Elizabeth A. Raabe, and Gabriel Ellsworth. "Bally Total Fitness (A): The Rise, 1962–2004." Harvard Business School Case 706-450, November 2005. (Revised December 2016.)
- July 2005 (Revised September 2016)
- Case
24 Hour Fitness (A): The Rise, 1983–2004
By: John R. Wells, Elizabeth A. Raabe and Gabriel Ellsworth
In October 2004, Mark S. Mastrov, CEO of 24 Hour Fitness, reflected on how far his company had come in just over 20 years. From humble beginnings in 1983 in San Leandro, California, 24 Hour Fitness had grown to become the largest privately-owned health-club chain in...
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Keywords:
24 Hour Fitness;
Mark Mastrov;
Health Clubs;
Fitness;
Gyms;
Chain;
Weight Loss;
Exercise;
Personal Training;
Retention;
Sales Force Compensation;
Incentive Systems;
Buildings and Facilities;
Business Growth and Maturation;
Business Model;
For-Profit Firms;
Customers;
Customer Focus and Relationships;
Customer Satisfaction;
Private Equity;
Revenue;
Geographic Scope;
Multinational Firms and Management;
Nutrition;
Business History;
Employees;
Recruitment;
Selection and Staffing;
Human Capital;
Business or Company Management;
Goals and Objectives;
Growth and Development Strategy;
Marketing;
Operations;
Service Operations;
Private Ownership;
Problems and Challenges;
Sales;
Salesforce Management;
Sports;
Strategy;
Business Strategy;
Competition;
Competitive Advantage;
Competitive Strategy;
Corporate Strategy;
Expansion;
Segmentation;
Information Technology;
Internet;
Technology Platform;
Web;
Web Sites;
Capital Structure;
Performance;
Organizational Structure;
Organizational Culture;
Health Industry;
United States;
California;
San Francisco
Wells, John R., Elizabeth A. Raabe, and Gabriel Ellsworth. "24 Hour Fitness (A): The Rise, 1983–2004." Harvard Business School Case 706-404, July 2005. (Revised September 2016.)
- 28 Aug 2023
- Research & Ideas
How Workplace Wellness Programs Can Give Employees the Energy Boost They Need
While companies may tout their wellness programs as a way of investing in their employees’ well-being, many are overly focused on reducing healthcare costs, so they tend to offer step challenges and gym discounts that workers don’t have...
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Keywords:
by Hise Gibson
- March 2020
- Case
Behavior Change for Good
By: Max Bazerman, Michael Luca and Marie Lawrence
In 2017, Katy Milkman and Angela Duckworth created Behavior Change for Good (BCFG)—a behavioral science initiative founded with the goal of helping people achieve long-term behavior change in the areas of personal health, financial decisions (savings), and education....
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Bazerman, Max, Michael Luca, and Marie Lawrence. "Behavior Change for Good." Harvard Business School Case 920-049, March 2020.
- 04 Jan 2022
- Research & Ideas
Scrap the Big New Year's Resolutions. Make 6 Simple Changes Instead.
Ambitious New Year’s resolutions often end in disappointment. So instead of setting unrealistic goals in 2022, business leaders should consider making smaller, simpler changes—and they just might see better results, says Harvard Business School Professor Hirotaka...
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Keywords:
by Kristen Senz
- July 2021
- Article
Creating Exercise Habits Using Incentives: The Trade-off Between Flexibility and Routinization
By: John Beshears, Hae Nim Lee, Katherine L. Milkman, Robert Mislavsky and Jessica Wisdom
Habits involve regular, cue-triggered routines. In a field experiment, we tested whether incentivizing exercise routines—paying participants each time they visit the gym within a planned, daily two-hour window—leads to more persistent exercise than offering flexible...
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Keywords:
Behavior And Behavioral Decision Making;
Healthcare;
Exercise;
Habit;
Routine;
Health;
Behavior;
Decision Making
Beshears, John, Hae Nim Lee, Katherine L. Milkman, Robert Mislavsky, and Jessica Wisdom. "Creating Exercise Habits Using Incentives: The Trade-off Between Flexibility and Routinization." Management Science 67, no. 7 (July 2021): 4139–4171.
- June 2014
- Article
The Red Sneakers Effect: Inferring Status and Competence from Signals of Nonconformity
By: Silvia Bellezza, Francesca Gino and Anat Keinan
We examine how people react to nonconforming behaviors, such as entering a luxury boutique wearing gym clothes rather than an elegant outfit or wearing red sneakers in a professional setting. Nonconforming behaviors, as costly and visible signals, can act as a...
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Bellezza, Silvia, Francesca Gino, and Anat Keinan. "The Red Sneakers Effect: Inferring Status and Competence from Signals of Nonconformity." Journal of Consumer Research 41, no. 1 (June 2014): 35–54. (Finalist, 2017 Best Article Award for a paper published in JCR in 2014.))
- October 2016
- Supplement
24 Hour Fitness (B): Ownership Changes, 2005–2016
By: John R. Wells and Gabriel Ellsworth
In 2016, 24 Hour Fitness was the number-two fitness chain in the United States, generating revenues of $1.4 billion from 441 clubs serving 3.8 million members. Based in San Ramon, California, 24 Hour Fitness operated clubs in 13 states. Having grown rapidly to become...
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Keywords:
Advertising;
Advertising Campaigns;
Buildings and Facilities;
Acquisition;
Business Growth and Maturation;
Business Model;
Business Organization;
For-Profit Firms;
Customers;
Customer Focus and Relationships;
Customer Satisfaction;
Age;
Training;
Private Equity;
Financing and Loans;
Price;
Profit;
Revenue;
Geographic Location;
Geographic Scope;
Health;
Nutrition;
Business History;
Human Resources;
Employees;
Employee Relationship Management;
Recruitment;
Selection and Staffing;
Journals and Magazines;
Human Capital;
Business or Company Management;
Goals and Objectives;
Growth and Development Strategy;
Management Teams;
Marketing;
Brands and Branding;
Marketing Channels;
Marketing Communications;
Marketing Strategy;
Social Marketing;
Demand and Consumers;
Market Entry and Exit;
Media;
Organizational Design;
Private Ownership;
Problems and Challenges;
Groups and Teams;
Sales;
Salesforce Management;
Situation or Environment;
Welfare or Wellbeing;
Sports;
Strategy;
Business Strategy;
Competition;
Competitive Strategy;
Competitive Advantage;
Corporate Strategy;
Expansion;
Segmentation;
Information Technology;
Internet;
Mobile Technology;
Online Technology;
Software;
Web Sites;
Value;
Valuation;
Health Industry;
Media and Broadcasting Industry;
United States;
California;
San Francisco
Wells, John R., and Gabriel Ellsworth. "24 Hour Fitness (B): Ownership Changes, 2005–2016." Harvard Business School Supplement 717-423, October 2016.
- Article
Megastudies Improve the Impact of Applied Behavioural Science
By: Katherine L. Milkman, Dena Gromet, Hung Ho, Joseph S. Kay, Timothy W. Lee, Pepi Pandiloski, Yeji Park, Aneesh Rai, Max Bazerman, John Beshears, Lauri Bonacorsi, Colin Camerer, Edward Chang, Gretchen Chapman, Robert Cialdini, Hengchen Dai, Lauren Eskreis-Winkler, Ayelet Fishbach, James J. Gross, Samantha Horn, Alexa Hubbard, Steven J. Jones, Dean Karlan, Tim Kautz, Erika Kirgios, Joowon Klusowski, Ariella Kristal, Rahul Ladhania, Jens Ludwig, George Loewenstein, Barbara Mellers, Sendhil Mullainathan, Silvia Saccardo, Jann Spiess, Gaurav Suri, Joachim H. Talloen, Jamie Taxer, Yaacov Trope, Lyle Ungar, Kevin G. Volpp, Ashley V. Whillans, Jonathan Zinman and Angela L. Duckworth
Policy-makers are increasingly turning to behavioural science for insights about how to improve citizens’ decisions and outcomes. Typically, different scientists test different intervention ideas in different samples using different outcomes over different time...
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Milkman, Katherine L., Dena Gromet, Hung Ho, Joseph S. Kay, Timothy W. Lee, Pepi Pandiloski, Yeji Park, Aneesh Rai, Max Bazerman, John Beshears, Lauri Bonacorsi, Colin Camerer, Edward Chang, Gretchen Chapman, Robert Cialdini, Hengchen Dai, Lauren Eskreis-Winkler, Ayelet Fishbach, James J. Gross, Samantha Horn, Alexa Hubbard, Steven J. Jones, Dean Karlan, Tim Kautz, Erika Kirgios, Joowon Klusowski, Ariella Kristal, Rahul Ladhania, Jens Ludwig, George Loewenstein, Barbara Mellers, Sendhil Mullainathan, Silvia Saccardo, Jann Spiess, Gaurav Suri, Joachim H. Talloen, Jamie Taxer, Yaacov Trope, Lyle Ungar, Kevin G. Volpp, Ashley V. Whillans, Jonathan Zinman, and Angela L. Duckworth. "Megastudies Improve the Impact of Applied Behavioural Science." Nature 600, no. 7889 (December 16, 2021): 478–483.
- January 2023 (Revised May 2023)
- Case
Peloton Interactive (A)
By: Suraj Srinivasan, Lynn S. Paine and David Lane
Early in February 2022, the board of Peloton Interactive faced some knotty challenges. Immense pandemic demand for its stationary exercise bicycles and treadmills had prompted the firm to scale up production rapidly. But as gyms reopened and the virulence of the virus...
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Keywords:
Corporate Governance;
Governing and Advisory Boards;
Growth Management;
Investment Activism;
Leadership;
Entertainment and Recreation Industry;
Sports Industry;
United States
Srinivasan, Suraj, Lynn S. Paine, and David Lane. "Peloton Interactive (A)." Harvard Business School Case 323-005, January 2023. (Revised May 2023.)
- February 2015 (Revised February 2016)
- Case
CrossFit (A)
By: Shikhar Ghosh, Ali Huberlie and Christopher Payton
The case provides a sense of motivations of venture capital firms, the pivotal role that founders play, and explores the limits of founder-driven growth.
CrossFit (CF) describes the approach taken by its founder Greg Glassman in setting up one of the most... View Details
CrossFit (CF) describes the approach taken by its founder Greg Glassman in setting up one of the most... View Details
Keywords:
Finance;
Venture Capital;
Strategy;
Organizational Culture;
Entrepreneurship;
Franchise Ownership;
Innovation and Invention;
United States;
North America
Ghosh, Shikhar, Ali Huberlie, and Christopher Payton. "CrossFit (A)." Harvard Business School Case 815-089, February 2015. (Revised February 2016.)
- September–October 2022
- Article
Case Study: What's the Right Career Move After a Public Failure?
By: Jon M. Jachimowicz and Francesca Gino
“Reunions are for happy people,” Mariani Kallis said to her friend Whitney on the phone. “I’m not going.” “Come on, it won’t be the same without you,” Whitney pleaded. “Besides, no one is happy right now. Everyone’s life is a mess.”
“I’m pretty sure none of our...
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Jachimowicz, Jon M., and Francesca Gino. "Case Study: What's the Right Career Move After a Public Failure?" Harvard Business Review 100, no. 5 (September–October 2022): 144–149.
- 2023
- Working Paper
'It Wouldn’t Have Mattered Anyway': When Overdetermined Outcomes Justify Our Sins
By: Stephanie C. Lin, Julian J. Zlatev and Dale T. Miller
We identify and document an “overdetermined outcome defense” which occurs when one learns
that circumstances besides one’s own actions were sufficient to produce a negative effect (e.g.,
deciding not to go to the gym, but later discovering that the gym had been...
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Lin, Stephanie C., Julian J. Zlatev, and Dale T. Miller. "'It Wouldn’t Have Mattered Anyway': When Overdetermined Outcomes Justify Our Sins." Harvard Business School Working Paper, No. 23-045, January 2023.
- January – February 2011
- Article
Stop Holding Yourself Back
By: Anne Morriss, Robin J. Ely and Frances X. Frei
After working with hundreds of leaders in a wide variety of organizations and in countries all over the globe, the authors found one very clear pattern: when it comes to meeting their leadership potential, many people unintentionally get in their own way. Five barriers...
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Keywords:
Transformation;
Decision Choices and Conditions;
Leadership;
Personal Development and Career;
Personal Characteristics
Morriss, Anne, Robin J. Ely, and Frances X. Frei. "Stop Holding Yourself Back." Harvard Business Review 89, nos. 1-2 (January–February 2011).
- 12 Nov 2013
- First Look
First Look: November 12
wearing gym clothes rather than an elegant outfit or wearing red sneakers in a professional setting. Nonconforming behaviors, as costly and visible signals, can act as a particular form of conspicuous consumption and lead to positive...
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Keywords:
Sean Silverthorne
- 30 Jun 2022
- HBS Case
Peloton Changed the Exercise Game. Can the Company Push Through the Pain?
committed to in-person classes could no longer head to gyms and fitness studios. At the end of June 2020, Peloton had 1.09 million subscribers, 113 percent over the previous year, with people paying $39 a month for the videos they could...
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- 19 Dec 2022
- Research & Ideas
The 10 Most Popular Articles of 2022
collaboration. 1. Scrap the Big New Year's Resolutions. Make 6 Simple Changes Instead. Self-improvement doesn't need to be painful. Rather than set yet another gym goal, look inward, retrain your brain, and get outside, says Hirotaka...
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Keywords:
by Danielle Kost