Consumer report: Drew Blakely, 2, peers out from the lobby window at the 2,000-square-foot Interactive Arena with obvious longing. The fact that the shock-absorbing Taraflex floor is imported from France, has a 98% rebound-accuracy rating for bouncing balls, and is infused with an antimicrobial shield that kills fungus on contact doesn’t matter to her. The carefully choreographed interactive video displays beamed onto three walls from multiple ceiling-mounted LCD projectors—operated by a bank of PCs running proprietary software designed for optimum visual impact and age-appropriate involvement—is appreciated on some level, but not her central focus at the moment. She likes the brightly colored activity stations of various shapes and configurations, but doesn’t care to comment on how each specifically addresses motor-skill development, balance, and coordination. All she knows is that kids are out there playing with their parents and having fun. They’re climbing ramps, crawling through tubes, and jumping on her personal favorite—the trampoline. Even though her face is still flushed and her blond hair a little bit sweaty from the 50-minute session she’s just finished, she seems more than ready to do it all over again. At two years old, Drew has been coming to the Great Play facility in Redmond, Washington, once a week for one-and-a-half years. “She loves it here,” her mother, Kim, says. The observation is welcome, but unnecessary—Drew’s beaming smile says it all.
Supplier report: It wasn’t all that long ago that the words clubs and children rarely occurred in the same sentence. But, for a number of years now, there’s been a steady shift toward providing youngsters with programs, equipment, facilities, and, even, fitness-franchise brands designed to meet their specific needs. Today, driven by greater awareness about children’s health and increased concerns about the lack of it—particularly given epidemic childhood obesity—the trend is accelerating.
Now, in addition to the kids’ Field House at Chelsea Piers, in New York City; Strive’s kidzSmart strength-training circuits; the O2 MAX club for teens in Santa Monica, California; and franchises such as Fitwize 4 Kids…Now we have a new generation of entrepreneurs who are bringing new ideas, technology, and business models, as well as a fresh passion, to the problem of keeping children active in an increasingly inactive world.
Their vision seems destined to, at the very least, inform and, possibly, to transform the industry’s perspective on the children’s market.
Linxx to youth fitness
Great Play, LLC, was launched in Stamford, Connecticut, in 2006 by cofounders Keith and Jyl Camhi. Today, are two corporate locations, in Stamford and in Scarsdale, New York, and one franchised operation, in Redmond, Washington, which opened one year ago. As anyone who’s been involved with the industry for a short while knows, Keith is one of its star entrepreneurs: the cofounder and chairman of FitLinxx, a Norwalk, Connecticut-based firm that delivers a wide range of technology-based fitness solutions worldwide.
A new generation of entrepreneurs is bringing new ideas, tech nology, and business models to bear on the problem of childhood inactivity .
“We wanted to get into the kids’ fitness market and considered operating an existing franchise, like a My Gym or a Gymboree,” he recalls, “but we felt the industry had grown a little stale relative to the emerging research and technologies. We were confident that, with my experience at FitLinxx and Jyl’s extensive marketing background at Microsoft, we could create a business model that would introduce innovation and energy to the sector and make it a whole lot better.”
Fitlinxx’s success at engaging exercisers is predicated on improving technique and providing ongoing encouragement, and, not surprisingly, the same approach is utilized by Great Play. “For instance,” Camhi explains, “the curriculum for older children includes six sports-skills programs—for football, baseball, basketball, soccer, volleyball, and floor hockey. Staff teaches individual competence across 24 skills, all of which are geared toward developing proper technique and sport proficiency. To enhance the learning experience, proper techniques are demonstrated by the staff and displayed on big screens.”
To make practice fun for young members, the video displays can be interactive, with features such as virtual bottles exploding when “hit” by a thrown ball. “We’re constantly building their skills and reinforcing their sense of success,” Camhi points out, “but the kids aren’t aware this is happening—all they know is that they’re having fun.”
A Great Play site requires about 3,000 square feet and can function as a stand-alone facility or as part of a health club. “It’s about the size of three racquetball courts,” says Camhi. Fees vary per market. In Stamford/Scarsdale, they include an annual initiation of $99 (often discounted to $49), plus $25 a week for one 50-minute class, plus open gym time. Typically, 300-500 kids are enrolled for each eight-week session, and there are an average of 15-18 in the gym at any given time.
“Birthday parties are another important revenue stream and a great recruiting tool,” notes Camhi. “We project a picture of the birthday child on our big screen and surround them with a virtual stadium full of cheering fans. They really get the all-star treatment.” An average weekend has 100-150 kids participating in parties.
At the corporate sites, Camhi reports strong results despite the turbulent economy, with 9.0% growth in EBITDAR (earnings before interest, taxes, depreciation, amortization, and rent). And Redmond franchisee Marie Maxwell is also upbeat about her club’s prospects. “We opened right before the bad economy hit,” she reports, “but we’re already at 75% of projections.”
“We’re providing a safe, healthy environment for kids ages six months to 12 years to play, develop motor skills, improve sports performance, and increase confidence and self-esteem,” says Camhi. “It’s a very happy place to be.”
Kids in for a SHOKK
 Jonathan Williams embarked on his current entrepreneurial endeavor in 1999, at age 23, with three essential ingredients: an idea, a desk, and a telephone. A mere decade later, that idea—SHOKK, Ltd., which encompasses both owned-and-operated and franchised facilities—has emerged as a leading global brand in kids’ fitness. “My goal,” he says of those early days, “was to develop a youth-activity business dedicated to getting young people interested in an active and positive lifestyle.”
Williams, now the CEO of SHOKK, was convinced that, to succeed, SHOKK had to be “brand-focused,” delivering a product with a polished, professional look and feel, and offering the same level of expertise, equipment, and programs found in high-quality clubs for adults. His concept was not only viable: it has flourished.
“There are over 150 facilities in the U.K.,” he says. “All told, we have 200 gyms in 20 territories, including Central Europe, Scandinavia, Australasia, the Middle East, and China.” The company’s clubs and branded programs can be found in elite sports clubs, recreation centers, hospitals, prisons, and even mobile vans. The first U.K.-based, youth-fitness company to expand internationally, SHOKK made its U.S. debut in Anaheim, California, last October. Today, some 175,000 kids are enrolled in its programs, and more than 250,000 have been “touched” by the SHOKK experience.
“Young people are very savvy consumers,” observes Williams. “We listened carefully to what they wanted, and the result is a funky, enjoyable environment where kids ages 5-18 can have fun, meet friends, and be active.” Music, technology, and movement combine to create experiences that are motivating and endlessly creative. SHOKK exercise options include the interactive Motivatrix MX10 Workout Master (a DDR-like system on steroids); the SHOKK wireless dance mat system (activities include circuit training, dance lessons, and sports-specific workouts); and boxing, martial arts, branded cardio machines, FLT (Functional Lifting Technology) resistance training, interactive target walls, Vew-Do skateboard simulators, and a variety of boot camps. Programs range from basic movement and fitness to complex elite-sports training.
A special feature is SHOKK Tactics, a Web-based CRM system that members use to record any of 150 activities, earn points toward prizes, track their progress, and receive nutrition and other healthy lifestyle information. Kids access their account on-site using a biometric fingerprint scanner, or on the Web with a private username and password. “The Tactics system is crucial to the growth of SHOKK,” insists Williams. “It’s popular with the kids, and it teaches them about physical activity and healthy lifestyles. Given our mission, it’s the Holy Grail.”
Depending on the number of programs offered, SHOKK facilities can range in size from 1,500 square feet (minimum) to 4,500 (average). While, similarly, membership fees vary depending upon location, size, and scope of the facility, they’re typically $20 to $150 per month; revenues, correspondingly, run from $200,000 to $1 million a year.
Powering up its franchise efforts, SHOKK recently joined forces with the énergie Group, the leading fitness franchiser in the U.K., to form SHOKK énergie. Williams reports that approximately 10% of its current facilities are operated under franchise agreements.
Regardless of a site’s size or location—it could be in an inner-city recreation center, or an upscale mall in Dubai—SHOKK’s success rests firmly on its core values, attests Williams. “Young people recognize quality, so we strive to maintain a high level of professionalism in everything we do,” he says, “and we’ll always remain true to our roots.”
- Stephen Wallenfels, stevewall@charter.net
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