Making It

No matter what industry they’re in, entrepreneurs have the odds against them. Twenty percent of small businesses fail in the first year and only approximately 50% survive five years, according to the US Bureau of Labor Statistics.

Simply surviving isn’t thriving, and this is especially true in the boutique fitness space.

Just 10% of studios are sustainably profitable, according to Studio Grow, a boutique fitness consulting firm.

So what does it take to buck the trend? HFB spoke with two entrepreneurs who have very little in common but have made their mark in the industry.

Jennifer Maanavi, co-founder and CEO of Physique 57, helped pioneer the modern boutique concept when she opened her first location in New York City in 2006. She also popularized barre workouts by putting a unique spin on the concept that’s derived from ballet training.

Earlier this year, Maanavi appeared on an episode of the HFA podcast Shorts With Liz Clark, the source of some of her quotes in this article.

Chyna Willman, much newer to the industry, is founder and CEO of Grit City Wellness, which opened its doors in 2019. Willman is at the forefront of a more comprehensive service proposition, integrating numerous wellness, fitness, and holistic concepts under one roof.

Willman is active in advocacy for the industry, both on the state and federal level, and she joined the HFA board of directors in June.

Although the two successful entrepreneurs come from different eras and opposite corners of the United States—Maanavi is based in New York City and Willman in Tacoma, Washington—they share striking similarities. Their brands differ in value propositions, yet both are fueled by a deep passion, creative problem-solving, and an unrelenting vision that informs their decision-making and strategic outlook. Notably, each had a thriving career outside the health and fitness industry before entering it.

JENNIFER MAANAVI: FROM FINANCE TO FITNESS (Physique 57)

The Vision

While working as a Wall Street executive, Maanavi helped launch the modern boutique fitness studio industry 20 years ago. It started when her favorite local exercise studio, the Lotte Berk Method studio in New York City, closed in 2005 after being open for 35 years.

Maanavi partnered with the studio’s top instructor, Tanya Becker, to co-found Physique 57. They created a modern barre workout that used elements of the Lotte Berk Method, which had been created in 1959 using ballet strength techniques by former ballerina Lotte Berk, along with newer dance, strength training, and yoga movements.

The Launch

Physique 57 was born in February 2006 in New York City on the eighth floor of a building on 57th Street in Manhattan, sharing the building with an art gallery. The workout was 57 minutes long.

“Boutique studios as we know them today didn’t exist at the time, and neither did barre—no one understood what I was doing,” Maanavi recalls. “Although I was creating something that had never been done before, I was 100% sure that it was going to work.”

She was right. The concept took off quickly, and people—including celebrities like actress Sarah Jessica Parker and super-model Christy Turlington—crowded the small space in Midtown.

“We had very limited marketing and no signage and were very lucky to get celebrities,” Maanavi says. “It was very grassroots—people found us organically.”

Maanavi opened additional locations in the New York City metro—a second location in Bridgehampton on Long Island in May 2006 and a third location in Soho in lower Manhattan in 2007—before going to California to open the fourth location in Beverly Hills in 2010, and then back to New York for the fifth studio in Manhattan on the Upper West Side in 2011. Revenues were $2 million for each unit, though Bridgehampton was open only for the summer, not a full year.

Creative Solutions to Challenges

In the early 2010s, competition spiked with the explosive growth of boutique fitness.

“Suddenly, there was a new studio opening in New York every few months,” Maanavi says. “Rather than chase every trend, we doubled down on what made Physique 57 special and embraced the mindset that we needed to earn our clients’ trust and attention every single day.”

Maanavi credits her strong team, a solid foundation, and the ability to stay agile as keys to the company’s resilience. “Forced to innovate in ways we never would have otherwise, we didn’t just survive but came back stronger than before,” she says.

In 2009, Physique 57 began offering workout DVDs. As technology evolved, the company added an on-demand platform in 2012. The digital offerings took on a critical role when the pandemic hit, as studios in New York City were closed for a year.

“I made the difficult decision to terminate most of our leases and essentially rebuild from the ground up,” Maanavi says about the pandemic period. “We literally threw out everything we thought we knew about running a fitness business and reimagined every aspect—from how we deliver classes to how we connect with our community.”

Today, the streaming service has subscribers in more than 100 countries. The streaming service earns 30% of the company’s revenue and 50% of its profits, Maanavi says.

Differentiators and Growth Strategies

Essential to Physique 57’s success has been its emphasis on hospitality by team members. “We wanted to create a warm environment where people felt confident and comfortable,” Maanavi says. “It’s our job to make sure that clients feel better leaving than showing up. Every studio owner should be thankful for every person who comes in.”

Hospitality also extends to the studios’ teams. Physique 57 trainers remain with the brand on average seven years, with many celebrating 10- and 12-year anniversaries.

“Your employees are your most valuable asset, so treat them as well as your clients,” Maanavi recommends. “When your team feels valued and respected, that energy translates directly to the client experience.”

Human interaction trumps technology as well, she says.

“Use AI to automate back-office tasks,” she says. “Then, take that time saved and give it back to your clients. There’s never a better opportunity for impact than looking a client in the eye and listening.”

Physique 57 began franchising in 2019.

Today, it has three corporate-owned studios in New York City, three licensees in New York and New Jersey, and seven licensed locations in Dubai, Mumbai, and Bangkok. Maanavi says the company plans to open more studios in New York City and continue to expand internationally, with a focus on Asia and the Middle East.

Though profit margins are higher today than pre-pandemic, total revenue is lower because Maanavi closed so many studios.

Today, she no longer operates any of the pre-pandemic studios.

Launching a Movement, Not Just a Brand

Physique 57 balances innovation and consistency to continue thriving by constantly evolving its signature method with new class formats, digital offerings, and teaching techniques.

“On the business side, we’re consistently improving our management practices, technology, and marketing strategies,” she says. “It’s actually harder to be relevant and to be fresh the longer you’ve been in it.

We never rest on our laurels, and remain open-minded, active listeners.”

As for the fitness industry overall?

Maanavi sees a big opportunity as part of the healthcare continuum.

“We are healthcare and can keep people healthy while building trust and relationships, which clients are craving. The industry can grow 10 times if we can deliver on this need.”

CHYNA WILLMAN: FROM GRIT TO GREAT (GRIT CITY WELLNESS)

The Vision

It was 2017 and Chyna Willman was struggling. A marketing and sales executive for companies tied to the automotive industry, she had spent the last 20 years in high-pressure corporate positions that demanded constant travel and long hours, leaving her stressed and exhausted.

“I was experiencing chronic fatigue, pain, and burnout, and there simply weren’t enough hours in the day to keep my health in check,” Willman recalls.

“Going from my acupuncturist to my massage therapist to my chiropractor consumed my entire day.”

One day, while racing between appointments, she envisioned a single haven that could provide a variety of holistic service that offered effective solutions and could be incorporated into a busy schedule.

Willman figured that she was far from alone in wanting a place that integrated all of these services in one location. She created Grit City Wellness, integrating ancient techniques with cutting-edge sports science to help people achieve total well-being.

“Grit City Wellness became the space I wish I had when I was grinding it out in the corporate world,” she says.

The Launch

Two years after this initial spark, the Canadian-born Willman opened Grit City Wellness on October 4, 2019, in Tacoma, Washington, not far from her home in nearby Puyallup. The 5,000-square-foot center offers a 24/7 fitness center; yoga, Pilates, and mind-body classes; personal training; mind-body-life coaching; and a multitude of recovery services, including cryotherapy, infrared sauna, compression therapy, Somadome meditation, massage, and more.

Today, about 500 members renew their bodies, minds, and spirits at Grit City Wellness. Dues are $80 per month for a basic membership up to $228 per month for unlimited. Annual revenue is $750,000 at a 43% margin.

Creative Solutions to Challenges

Facing the pandemic six months after opening was incredibly difficult, Willman acknowledges. She looked for support from a variety of sources, including federal relief programs, county grants, and industry guidance so she could keep the business afloat.

“Grit City Wellness was built to serve people during their most stressful times, and that purpose kept me going,” she says.

A challenge beyond the pandemic has been persistent issues with the mixed-use development where Grit City Wellness is located. To seek solutions, she collaborated with area business owners, property stakeholders, and the city to found a 501(c)6 merchants alliance. A 501(c)6 organization is a common designation by the IRS. Many associations, including HFA, are 501(c)6 organizations.

“Together we share a unified voice and solve for the needs of our business community,” Willman says.

Differentiators and Growth Strategies

Based on her automotive industry experience, Willman envisioned she would eventually franchise Grit City Wellness.

“I was part of a high-performing, well-oiled system where brand standards, operational excellence, and customer experience were everything,” Willman says. “That foundation gave me a deep understanding of how to replicate success at scale.”

After years of focusing on strengthening the business’ foundation, refining its systems, and building something that was worth replicating, she will launch franchising this fall and looks forward to collaborating with franchisees who want to share the studio’s transformational experience with their communities.

“The timing couldn’t be better, as the industry is catching up with the integrated model we’ve been building on, and the demand for in-person, community-centered connection has never been greater,” she says.

Data backs her statement. According to HFA’s 2024 US Health & Fitness Consumer Report, 78.7% of studio members belonged to more than one facility type, a statistic that rises the younger the demographic.

Launching a Movement, Not Just a Brand

Willman sees Grit City Wellness becoming a force in the industry.

“The typical single-modality studio doesn’t meet the full spectrum of consumer needs anymore,” she says. “Today’s consumer is more informed, more stressed, and more results-driven than ever. It’s not just about offering multiple services; it’s about how they work together to help people feel better, perform better, and live better.”

Wellness is more than a business—it’s a movement, Willman says. “This is where the industry is headed—and we’re already there.”

Over the years, as the fitness and wellness industries have evolved, Willman has recognized her role as an innovator in integrating wellness and holistic services with traditional studio offerings.

“It’s incredible to see something that started as a bold idea helping set the standard for where modern wellness is headed.”

THE 5 ESSENTIALS FOR BOUTIQUE FITNESS SUCCESS

Boutique studios have been returning in force post-pandemic, and the market is expected to grow. But, as noted in the accompanying article, reaching a profitable status is far from guaranteed. Only 17% of studios have a profit margin of 20% or more, according to the 2024 Boutique Fitness Solutions State of the Industry Report.

So what does it take to succeed as an entrepreneur in the boutique fitness studio business? And what is critical for aspiring, new, or current studio owners?

HFB asked Lise Kuecker to weigh in. She is the founder and CEO of Studio Grow, co-founder of The Boutique Fitness Coalition, creator of The Business of Boutique Fitness podcast, and a six-time studio owner.

Profitable Presales

Presale numbers are linked with profitability three and five years after opening, yet many boutiques don’t take advantage of or don’t know about this opportunity, Kuecker says.

The process includes deliberately building a waitlist 12 to 16 weeks before opening and selling founding memberships six weeks prior to grand opening. “A successful grand opening assumes studio owners will double their presale numbers in the first 90 days,” she says.

OMNICHANNEL MARKETING

No longer can studio owners rely on a few marketing vehicles in today’s highly competitive landscape, with a distracted audience. “Consumer behavior is forcing us to operate across a wide variety of channels—including social media, email, SMS, content marketing, referrals, and even traditional community outreach,” Kuecker says. “Studios need a comprehensive approach and smart strategy to manage these.”

AN EMPLOYEE GROWTH PLAN

After an estimated 1.1 million people left the boutique industry during the pandemic, studios continue to contend with a labor shortage. According to Kuecker, boutique gyms need to change their employment models.

“Our teams want to grow, yet our industry has largely relegated them to independent contractors doing hourly work,” she says.

“It’s time to flip this narrative and give them a chance at a career rather than a hobby.” That includes comprehensive onboarding, ongoing training, salaries, health insurance, paid leave, and a 401k plan.

EXCEPTIONAL MID-LEVEL MANAGEMENT

Most studio owners also serve as instructors, salespeople, HR leaders, custodians, and more.

But to sustain growth, they need to hire and delegate to a manager so they can function more like a CEO. “If you’re growing past three studios, it’s time to begin building a mid-level management team that can scale you quickly,” Kuecker suggests.

A VOICE

“If the pandemic taught us anything, it’s that advocacy matters,” Kuecker says, having co-founded the Boutique Fitness Coalition in 2020 to represent the industry and create community.

An annual participant in the Health & Fitness Association’s Fly-In and Advocacy Summit, Kuecker emphasizes active support. “Don’t be afraid to share why this industry is critical. We are preventive healthcare.”