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Ken Campling says Bannatyne is repositioning as a wellness provider – locations with spas are 'much more profitable'
POSTED 05 May 2021 . BY Tom Walker
On average, spas add 20–25 per cent to the profitability of a Bannatyne club Credit: Bannatyne
Gyms with a spa are 20-25 per cent more profitable than gyms without
– Ken Campling, FD, Bannatyne
Bannatyne focuses on wellbeing, as it looks to bounce back from the effects of the pandemic lockdowns
Financial director, Ken Campling, said clubs with spas are up to a quarter more profitable
All of the group's clubs offer physiotherapy and 48 of 71 have a spa
The group is expecting to report pre-tax losses of around £20-£21 for the year ending December 2020
Health club operator Bannatyne is repositioning itself as a wellness provider, as it looks to bounce back from the effects of the pandemic lockdowns.

Speaking exclusively to HCM, Bannatyne' FD, Ken Campling, says the decision has been partly driven by the fact that clubs with spas are up to 25 per cent more profitable.

In a wide-ranging interview (click here), Campling said: "The main strategy will be positioning ourselves as a wellness provider, which I believe can be a USP for us.

"We have all the elements needed to look after people’s wellness. We have gyms, but we also have physiotherapy on every site, café bar areas for a social element and spas at 48 of our clubs.

"Gyms with a spa are more profitable than gyms without: on average they add 20–25 per cent to the profitability of a location.

"We want to integrate the offering around these and get that holistic message across."

Campling said the repositioning will also require a training push across the workforce.

"We need to train our staff so they know more about each part of the business and we need to be more persuasive with our members," he said.

"We want them to understand it isn’t just about fitness, but about feeling better as a person – physically and mentally – and that taking advantage of more of our complementary services will help them achieve this."

As a result of the strategy, Bannatyne expects to be back making monthly profits by the end of the year.

"I believe we’ll be profitable again, month by month, by the end of 2021," Campling said.

"Early sales have been very encouraging. While I know the trend will drop off slightly, I’m hopeful there could even be a ‘January’ this September, for example, once people are back from their UK staycations – perhaps even foreign holidays – and are thinking: ‘I’ve got to get back to the health club now’."

Like other UK operators, Bannatyne has been hit hard by the pandemic and the subsequent lockdowns.

The group is expecting to report pre-tax losses of around £20-£21 for the year ending December 2020 – a huge drop from the pre-tax profit of £12.5m it achieved in 2019.

Campling also revealed that the group lost more than a third (34-35 per cent) of its members – a total of around 70,000 – during the pandemic.

He also revealed the company has permanently closed two clubs – Birmingham Priory and London’s Russell Square – which bringing its estate to 71.

Both sites were coming toward the end of their leases and – in contrast with the new focus on wellness – had no spa.

To read the full interview with Ken Campling, click here for HCM Issue 3, 2021.
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Jobs   News   Products   Magazine
NEWS
Ken Campling says Bannatyne is repositioning as a wellness provider – locations with spas are 'much more profitable'
POSTED 05 May 2021 . BY Tom Walker
On average, spas add 20–25 per cent to the profitability of a Bannatyne club Credit: Bannatyne
Gyms with a spa are 20-25 per cent more profitable than gyms without
– Ken Campling, FD, Bannatyne
Bannatyne focuses on wellbeing, as it looks to bounce back from the effects of the pandemic lockdowns
Financial director, Ken Campling, said clubs with spas are up to a quarter more profitable
All of the group's clubs offer physiotherapy and 48 of 71 have a spa
The group is expecting to report pre-tax losses of around £20-£21 for the year ending December 2020
Health club operator Bannatyne is repositioning itself as a wellness provider, as it looks to bounce back from the effects of the pandemic lockdowns.

Speaking exclusively to HCM, Bannatyne' FD, Ken Campling, says the decision has been partly driven by the fact that clubs with spas are up to 25 per cent more profitable.

In a wide-ranging interview (click here), Campling said: "The main strategy will be positioning ourselves as a wellness provider, which I believe can be a USP for us.

"We have all the elements needed to look after people’s wellness. We have gyms, but we also have physiotherapy on every site, café bar areas for a social element and spas at 48 of our clubs.

"Gyms with a spa are more profitable than gyms without: on average they add 20–25 per cent to the profitability of a location.

"We want to integrate the offering around these and get that holistic message across."

Campling said the repositioning will also require a training push across the workforce.

"We need to train our staff so they know more about each part of the business and we need to be more persuasive with our members," he said.

"We want them to understand it isn’t just about fitness, but about feeling better as a person – physically and mentally – and that taking advantage of more of our complementary services will help them achieve this."

As a result of the strategy, Bannatyne expects to be back making monthly profits by the end of the year.

"I believe we’ll be profitable again, month by month, by the end of 2021," Campling said.

"Early sales have been very encouraging. While I know the trend will drop off slightly, I’m hopeful there could even be a ‘January’ this September, for example, once people are back from their UK staycations – perhaps even foreign holidays – and are thinking: ‘I’ve got to get back to the health club now’."

Like other UK operators, Bannatyne has been hit hard by the pandemic and the subsequent lockdowns.

The group is expecting to report pre-tax losses of around £20-£21 for the year ending December 2020 – a huge drop from the pre-tax profit of £12.5m it achieved in 2019.

Campling also revealed that the group lost more than a third (34-35 per cent) of its members – a total of around 70,000 – during the pandemic.

He also revealed the company has permanently closed two clubs – Birmingham Priory and London’s Russell Square – which bringing its estate to 71.

Both sites were coming toward the end of their leases and – in contrast with the new focus on wellness – had no spa.

To read the full interview with Ken Campling, click here for HCM Issue 3, 2021.
RELATED STORIES
FEATURE: Interview: Ken Campling


Following reports of a bid to buy the Bannatyne Group, we get the lowdown on how the business has been faring and plans for 2021 from its de facto CEO
Bannatyne says impact of COVID-19 could be £30m


Duncan Bannatyne, CEO of Bannatyne Group, which runs spas, health clubs and hotels, says the coronavirus shutdown could cost the company £30m.
Duncan Bannatyne takes back the reins at Bannatyne as CEO Justin Musgrove steps down


Duncan Bannatyne is to return to frontline involvement in the health club, spa and hotel business that bears his name, as current CEO, Justin Musgrove, announces his departure for a new role in the Middle East.
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The number of active memberships across European health clubs fell by roughly 10 million – or 15.4 per cent – during 2020, a year defined by the pandemic.
Peloton launches Corporate Wellness platform
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Calories don't count – but the way a body absorbs them does
Dr Giles Yeo, a geneticist at Cambridge University in the UK, has written a new book in which he makes the case that the current approach to understanding calories is "entirely wrong".
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As gyms begin to reopen, cleanliness and hygiene remain an essential part of ensuring staff and members are confident to return. [more...]
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Physical Company’s mission statement is ‘First for Fitness Solutions’ – a statement that reflects th [more...]
+ More profiles  
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+ More catalogues  

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A new zone is here for your club, for your members and for you. Find out more...
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Tel: +44 (0)1462 431385

©Cybertrek 2021

ABOUT LEISURE MEDIA
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