24 Hour Fitness "laysoff" top executives

ninerbuff

I saw this coming which is part of the reason I left 24 hour Fitness as a trainer.

http://clubindustry.com/24-hour-fitness/24-hour-fitness-lays-several-corporate-shakeup

They opened up a 24 Hour Fitness Super Sport a few miles away from where I currently work and we lost a few members to it due to pricing. What some have done is come back because of overcrowding and poor member service, but with this latest shake up, some more may even return.

Current members may see their monthly's go up or reduction in staff on floor.

A.C.E. Certified Personal and Group Fitness Trainer
IDEA Fitness member
Kickboxing Certified Instructor
Been in fitness for 28+ years and have studied kinesiology and nutrition

spicy618

I've been a member at 24 on and off for over 10 years and have witnessed the downgrade. I really like the one i attend but the broken down machines, broken A/C and the so called "personal trainers" have pushed me out of there.

Thanks for the info.

smantha32

Funny, I saw an episode of Tanked the other night (A reality show with this company that builds custom aquariums) and they built a huge custom tank for the owner of 24 hour fitness. He wanted a big tank for the mansion he's expanding by another 10,000 sq feet.

I wonder if he'll be downsizing now... probably not.

ninerbuff

I worked in the San Ramon 24 Hour Fitness Super Sport (which was the gym that all the execs used) and met most of them. Nice people for the most part, but they didn't see what was going on at the bottom. Main concern was just trying to monopolize the gym industry.

A.C.E. Certified Personal and Group Fitness Trainer
IDEA Fitness member
Kickboxing Certified Instructor
Been in fitness for 28+ years and have studied kinesiology and nutrition

Azdak

I don't have a huge amount of hands-on experience with the commercial club market. I have preferred to stay on the "clinical" side of things, first in actual clinical programs, then in hospital-based fitness. And while the "medical fitness" atmosphere is changing daily to become more like that at commercial clubs, it still a ways from the bottom. However, even though I never worked directly with clubs, I spent 8 years at a company that was heavily involved, and got a good sense of that business.

When I look at the titles of those who were laid off, it sounds like a top-heavy organization (VP of Group Fitness? ), although, given their size, maybe some of that was necessary.

It also sounds like a company that grew way beyond its initial focus, and has grown to a level of incompetence. Sometimes the business plan and the corporate officers that work well on smaller scale, are ill-equipped to perform when the business volume skyrockets.

It seems this company is owned by a private-equity firm. It sounds like they tried to sell the company, but took it off the market because the offer prices were too low. It makes me wonder if the equity firm is doing this restructuring to radically cut costs and make the product more attractive to prospective buyers.

This story is eerily familiar to one I experienced a number of years ago. Again, it was a smaller company, led with passion by the founders, that found a successful business strategy and became very successful on a local scale. Convinced of their superior plan and talents, over 2-3 years, they tripled/quadrupled the number of stores, backed by private-equity firm that had purchased 51% of the company a few years earlier.

Well, none of these guys had the talent to run the operations of the larger company. Large companies require procedures and systems to control costs and ensure quality. These guys had no personal discipline and put a bunch of cronies in key positions. They were never able get control of the larger business and, after a slight turndown in the business cycle, were instantly overwhelmed by debt. Barely 15 months after an industry magazine feature this company as an up-and-coming leader, and published the boastful quotes from the president on how they had conquered their world, they were out of business.

Fitness is a tough business. You've gotta pay attention every second of every day to the details and to the quality of the customer experience. The moment you start looking at spreadsheets rather than what's happening on the fitness floor, you are toast. It unfortunately also attracts a lot of "chest thumpers"--people who get too caught up in "beating" the competition, and not watching their own house.

Azdak

I worked in the San Ramon 24 Hour Fitness Super Sport (which was the gym that all the execs used) and met most of them. Nice people for the most part, but they didn't see what was going on at the bottom. Main concern was just trying to monopolize the gym industry.

A.C.E. Certified Personal and Group Fitness Trainer
IDEA Fitness member
Kickboxing Certified Instructor
Been in fitness for 28+ years and have studied kinesiology and nutrition

See my other remarks. That urge to "dominate" is endemic to the industry, in my experience. Maybe it's because so many of the people who work in clubs come from backgrounds as competitive athletes.

When I worked in sales, my company came out with a new line of power racks and platforms. They had never had any products for that area before, and saw the market growing as some of us had been very successful selling a line of premium racks and platforms to high schools and colleges.

They introduced their new products at our annual sales meeting. The products were pretty good for a first effort, but they insisted on pricing them at a level comparable to products that were much better. The sales guys started pointing out some of the shortcomings with the products and the pricing strategy with the product managers (who were happy to receive the input).

After a couple of minutes, the Sales VP for our region broke in and said: "Hey, you guys need to just shut up and do your jobs".

At other meeting, the Exec VP of Sales for the entire company announced: "I've been asked what we are going to do about the (new features) from (competitor name). We don't think about the competition--we DISMISS the competition."

It's a strange world.

auroranflash

I joined 24 Hour Fitness because it was inexpensive and on the way home from work. I went there for a year and a half, but I found myself dreading being there in that environment. The entire establishment from bathrooms to gym floor was dirty and never cleaned by the teenage staff who were too busy flirting with each other to really pay attention to any of the members. I inquired about the scale which used to be in the women's bathroom, only to be told it had broken and they would not replace it - you had to use the scale positioned at the front desk, in view of everyone. Unsatisfied with the answer, I asked another employee and he promised that the scale was in the process of being replaced. Of course, it never was.

Machines would break and stay out of commission permanently. There were cardio machines which would give an ungodly squeak every time someone used them, completely disturbing even those wearing headphones. I complained but it remained squeaky for another two weeks before they finally stuck the Rest In Peace sign 'Down for Maintenance' on it and it was never touched again.

The air conditioning on the cardio side of the room did not function properly, if at all, while the air seemed to be regulated decently more near the middle and weights side of the gym. Texas summers are hot enough, but try using a stairclimbing machine with little to no air circulation. You will be begging to die.

Not to mention the trainers whom I specifically told what I wanted to focus on, then went off in a completely different direction and wasted half the session talking about not eating after 8pm and other such silly advice they're not qualified to offer.

All of these complaints were voiced repeatedly to management both in the gym, over the phone, and online, but no progress was ever made. When I finally had enough and realized I was dreading going so much I was actually just letting my membership sit there unused, I called and canceled and told the cancellation department my entire experience. I doubt anything has changed since.

If I do get a gym membership in the future, it will be to L.A. Fitness. They are right down the road from me. They are a little higher priced but that money obviously goes to maintaining their equipment and employing their cleaning staff whom I regularly see going around and wiping the machines down - something I never once saw at 24. You're lucky if the gym goers at 24 even wipe down the machines, much less the staff.

Not impressed at all by 24 Hr Fitness. I hope whatever changes come, they are positive ones. Go back to the basics, care about your members as if they were family and care for your gym as if it were your home. A little consideration goes a long way.

DavPul

A bunch of executives at the top lost their job and/or were given new titles?

This is relevant to whom?

AZKristi

I'm not surprised they got rid of their VP of Human Resources. The company can't seem to keep front line employees - member service reps, trainers, managers, kids club attendants, etc. I love 24 hour fitness because its affordable. There are plenty of luxury gyms to choose from and I think a lot of people appreciate the no frills option combined with the large number of clubs.

NotThePest

This story proves out this saying:

You may not get what you pay for, but you always pay for what you get. Cheap doesn't mean inexpensive. I am an accountant, not-for-profit and I see the mentality in a lot of accountants, confusing cost with the need for an investment in products, people, etc.

pamelak5

I joined 24 Hour Fitness because it was inexpensive and on the way home from work. I went there for a year and a half, but I found myself dreading being there in that environment. The entire establishment from bathrooms to gym floor was dirty and never cleaned by the teenage staff who were too busy flirting with each other to really pay attention to any of the members. I inquired about the scale which used to be in the women's bathroom, only to be told it had broken and they would not replace it - you had to use the scale positioned at the front desk, in view of everyone. Unsatisfied with the answer, I asked another employee and he promised that the scale was in the process of being replaced. Of course, it never was.

Machines would break and stay out of commission permanently. There were cardio machines which would give an ungodly squeak every time someone used them, completely disturbing even those wearing headphones. I complained but it remained squeaky for another two weeks before they finally stuck the Rest In Peace sign 'Down for Maintenance' on it and it was never touched again.

The air conditioning on the cardio side of the room did not function properly, if at all, while the air seemed to be regulated decently more near the middle and weights side of the gym. Texas summers are hot enough, but try using a stairclimbing machine with little to no air circulation. You will be begging to die.

Not to mention the trainers whom I specifically told what I wanted to focus on, then went off in a completely different direction and wasted half the session talking about not eating after 8pm and other such silly advice they're not qualified to offer.

All of these complaints were voiced repeatedly to management both in the gym, over the phone, and online, but no progress was ever made. When I finally had enough and realized I was dreading going so much I was actually just letting my membership sit there unused, I called and canceled and told the cancellation department my entire experience. I doubt anything has changed since.

If I do get a gym membership in the future, it will be to L.A. Fitness. They are right down the road from me. They are a little higher priced but that money obviously goes to maintaining their equipment and employing their cleaning staff whom I regularly see going around and wiping the machines down - something I never once saw at 24. You're lucky if the gym goers at 24 even wipe down the machines, much less the staff.

Not impressed at all by 24 Hr Fitness. I hope whatever changes come, they are positive ones. Go back to the basics, care about your members as if they were family and care for your gym as if it were your home. A little consideration goes a long way.

Sorry for the random thread revival - but think twice before going to L.A. Fitness. When they took over gyms in the DC area, the clubs went downhill quickly. Especially be sure to avoid if you use personal training.

I go to quite a few 24 hour locations. Two are amazing. The others (one even being a super sport) is not amazing at all. I had the same experience with Gold's Gym - One facility was stellar, others were okay. Also another regional club - the club I used most was top notch, its sister location was decrepit. I recommend visiting all locations you'd use before signing up.