Equinox: Unfazed by Weight-Loss Meds

Upscale fitness chain Equinox seemed to be surrendering. In January, gym members in select areas began receiving notifications about a new club benefit:

 a training program described by Equinox as a “unique approach to weight loss with GLP-1.”

 Following WeightWatchers’s launch of a telehealth program to prescribe weight-loss medications to its members last December, Equinox’s GLP-1 training “protocol” seemed like another acknowledgment that diet and exercise alone couldn’t compete with potent drugs such as Wegovy and Zepbound (or Ozempic and Mounjaro, which are approved for treating Type 2 diabetes but are often prescribed off-label for weight loss).

 Moreover, as Equinox sought lenders to help refinance approximately $1.5 billion in maturing loans, it appeared to be a desperate move.

 With the seemingly effortless weight loss achievable through drugs like Wegovy or Zepbound, one might wonder why anyone would bother going to the gym at all.

It turns out, that’s just a misconception held by those who are uninterested in fitness. And such individuals don’t frequent Equinox. “I’m fortunate to have a membership base that sees the bigger picture,” says Michael Crandall, a long-time personal trainer at one of Equinox’s private-training-only E Clubs in New York City.

 “Being at a healthy weight or working towards one doesn’t mean fitness loses its importance in your life. From what I’ve observed, the demand for memberships and training is actually increasing because of these drugs. I’m having to turn away potential clients more than ever.”

Based on the positive feedback in its test markets, just three months after creating its first batch of GLP-1-certified personal trainers, Equinox reports it is now serving GLP-1 clients in every market.

 In March, Equinox’s parent company, Equinox Group—which also operates brands like Equinox Hotels, Blink Fitness, and SoulCycle—announced it had secured $1.8 billion in new capital and credit for refinancing and expansion.

 Currently operating 104 U.S. locations, Equinox plans to add more than 25 gyms in major markets.

Equinox’s GLP-1 protocol isn’t a universal program but rather a set of best practices developed by Equinox’s new Health Advisory Board, a team of fitness professionals and doctors.

These guidelines assist the company’s personal trainers in supporting clients who experience significant physical and metabolic changes due to drugs like Wegovy.

“The drugs excel at inducing fat loss,” says Crandall. Strength training becomes crucial to ensure clients maintain or mitigate the loss of muscle mass, which can be an issue for individuals taking weight-loss drugs.

 Personal trainers also provide extensive lifestyle coaching. Since people on GLP-1s like Wegovy and Zepbound often have reduced appetites, they might not consume enough protein to build muscle, and “they may lack the energy for intense workouts,” says Crandall.

Having worked with numerous clients on GLP-1 drugs, Crandall notes that none have stopped taking the medication—though some are gradually discontinuing it—and none have regained their previous weight.

Equinox isn’t partnering with drug companies or facilitating access to GLP-1 drugs for its members. However, other fitness chains are:

 In October 2023, Life Time, which operates about 170 “athletic resort” destinations in North America, announced a pilot program to prescribe weight-loss injections to members.

 In December, Xponential Fitness—whose boutique fitness franchises include Club Pilates, Pure Barre, and Rumble—announced it was acquiring “metabolic health” brand Lindora, which currently offers weight-loss medications, hormone replacement therapy, and IV hydration at 31 clinics in Southern California and Washington State.

The average cost of personal training at Equinox is $160 per session. Last May, Equinox announced plans to hire 5,000 new personal trainers, indicating substantial unmet demand.

 While the company didn’t disclose what percentage of its customers use personal trainers, the Health and Fitness Association’s 2023 Health Club Membership Trends report found that, industry-wide, 16% of gym members engage in personal training. The specialized GLP-1 offering promises to increase those numbers at Equinox, and as the brand positions itself as a lifestyle and wellness hub, it’s exploring additional ways to monetize memberships.

In May, it introduced the Equinox Circle program, which grants gym members access and perks at partner brands across health tech, nutrition, and travel, including “smart ring” maker Oura, helicopter service Blade, restaurant-reservation platform Dorsia, sneaker-and-streetwear marketplace StockX, and supplement maker Thorne.

 This April, Equinox launched a partnership with Function Health, a subscription lab-test service, to create personal training programs based on individual biological data.

These initiatives appear to be effective. In March, the company announced a 27% increase in revenue for 2023 compared to the previous year. (Equinox reportedly raised its membership fees last year.)

 This trend aligns with the broader industry: according to the Health and Fitness Association, membership at U.S. fitness facilities hit a record high of 68.9 million in 2022, with 2023 figures expected to surpass that.

However, some early signs indicate that 2024 may not be as promising for fitness chains. Mobile phone location data for 10 chains—including Equinox, Xponential Fitness, and Planet Fitness—monitored by Placer.ai, showed that gym foot traffic in January 2024 remained unchanged from January 2023.

 Given that January visits to these gyms increased by more than 40% in each of the last two years, this suggests that the post-pandemic surge in gym attendance might be ending.

Equinox is relying on the idea that it’s not just an ordinary gym. The inclusion of its new GLP-1 protocol and other extras is expected to help it thrive in a future where weight loss is less of a motivation for gym-goers.



Source: fastcompany

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