Is the Fitness Industry Recession-Proof? Four Strategies for Long-Term Stability

The fitness industry has always been a fascinating case in terms of economic resilience. On one hand, health and wellness are essential, with many consumers prioritizing fitness even in tough times. Conversely, gym memberships and personal training services are often viewed as discretionary spending, making the industry susceptible to economic downturns.

The COVID-19 pandemic forced gym operators to adapt rapidly, and those who survived learned valuable lessons in change and adaptability. But how well-positioned is the industry to withstand a future recession? More importantly, what can gym owners do to make their businesses as recession-proof as possible? Here are four key strategies gym operators should consider to enhance their financial stability in uncertain economic times.

1.  Diversify revenue streams

One of the biggest lessons from the pandemic was the importance of having multiple revenue streams. Traditionally, gyms have relied heavily on membership fees. However, those with additional income sources — such as virtual training, corporate wellness programs, retail sales or hybrid membership models — fared much better during the pandemic’s economic turbulence.

To recession-proof a gym, owners should consider diversifying income by offering online training and digital content, such as virtual personal training and recorded workout libraries. Corporate wellness programs are another avenue that allows gyms to partner with businesses to provide fitness solutions for employees. Retail and supplement sales, including apparel and branded merchandise, can also help increase per-member spending. 

Additionally, premium or tiered memberships that provide added benefits or exclusivity create increased revenue opportunities. Personal and small group training are valuable revenue streams that boost income and enhance member engagement and retention.

Expanding the value proposition beyond workouts is another way to improve revenue and retention. Gyms that offer wellness education, nutrition guidance and mental health resources help members see their membership as essential rather than discretionary. This increases the perceived value and creates more opportunities for revenue diversification.

In my conference presentation “Diversified Member Engagement,” I discuss the concept of diversified revenue streams. A key takeaway is that when one revenue stream dries up, others can sustain the business, reducing overall financial vulnerability. The more revenue sources a gym has, the less susceptible it is to economic downturns.

2.  Focus on retention

In a recession, potential gymgoers are tightening their budgets, and joining a new fitness facility often falls into the “nonessential” category, making member retention far more valuable than chasing new signups. Instead of relying on a consistent influx of new prospect conversions, successful gyms will focus on retaining existing members. Member experience and engagement are key to retention.

Staff should be trained to connect with members personally by learning their names, goals and preferences. Creating a strong sense of community through events, challenges and social gatherings fosters belonging and strengthens member loyalty. Ensuring a high-quality experience — with clean facilities, well-maintained equipment and top-notch customer service — is crucial to keeping members engaged. Loyalty and rewards programs involving referral bonuses, discounts for extended memberships or milestone rewards can incentivize long-term commitment. Gamification strategies such as tracking workouts, earning badges and setting challenges can drive engagement by making fitness more interactive and rewarding.

Flexible membership options — including freeze options, short-term contracts or pay-as-you-go alternatives — can accommodate different financial situations and prevent cancellations. Additionally, enhanced communication that emphasizes the benefits of staying physically and mentally active can reinforce the value of maintaining a membership, especially during the stress of economic hardship.

3.  Optimize efficiency

During economic downturns, businesses operating efficiently without compromising quality are more likely to survive. Gym owners should evaluate their expenses and optimize operations to maximize profitability.

One way to improve efficiency is by streamlining staffing models, adjusting staffing levels to match peak hours and automating processes where possible. Many clubs we consult with have adopted a hybrid role of front desk attendant and sales, which maximizes efficiency while maintaining strong customer service. Leveraging technology such as CRM software for member management, automated billing and AI-driven customer engagement can help reduce overhead costs. Reassessing agreements with landlords, equipment suppliers and service providers can lead to better financial terms and cost savings. Monitoring key financial metrics — cost per member, profit margins and revenue per square foot, to name three — enables data-driven decision-making.

Additionally, when fewer employees are expected to take on more responsibilities, it is crucial to embrace servant leadership. Gym owners and managers must ensure that staff feel valued, appreciated and supported. Providing regular recognition, professional development opportunities and a strong sense of purpose will help maintain morale and prevent burnout. A lean and efficient gym operation will be better positioned to weather economic uncertainty, but only if staff remain motivated and engaged in delivering exceptional member experiences.

4.  Learn from the pandemic

Gyms that survived the pandemic learned much about adaptability, resilience and member engagement. Those lessons should not be forgotten, but rather used as a blueprint for facing future challenges.

Many gyms successfully integrated virtual and in-person services, making them more adaptable to changing circumstances. Hygiene and cleanliness became top priorities, and members now expect higher standards in gym environments. Ironically, before the pandemic, cleanliness was often seen as a perk at gyms — something that set a facility apart — but now it is an absolute necessity. Members no longer tolerate unclean facilities, making hygiene a non-negotiable standard for trust and retention.

Strengthening crisis management plans, such as maintaining financial reserves and having adaptable business strategies, can prevent panic when challenges arise. While all the strategies discussed in this article are valuable practices, gym owners should not underestimate the power of firm financial reserves. Cash on hand provides a critical safety net, allowing businesses to navigate economic downturns, unexpected expenses and operational challenges without immediate drastic measures.

Investing in member trust through transparency, communication and authenticity was critical in keeping members engaged during difficult times over the past five years. By applying these lessons proactively, gym owners can build a strong business amid economic uncertainty moving forward.

Not every facility will implement every one of these strategies, but the key is to determine which will work best for your business and act on those. Even minor improvements in these areas can make a meaningful difference. While the fitness industry may not be entirely recession-proof, strategic planning can make gyms more resilient during economic downturns.

By diversifying revenue streams, prioritizing retention, optimizing operations and leveraging lessons learned from the pandemic, gym owners can fortify their businesses against financial instability. The key is to shift from a reactive mindset to a proactive one — ensuring that the gym remains a vital, valuable and indispensable part of members’ lives in any economy.