How to find the best location for a new gym

Choosing the best location for a gym is an important decision. With the right know-how and support, you’ll be certain of selecting the best possible location when opening a gym. How do you get started and what do you need to consider? Let’s take a look!

Location matters.

Where your gym is located can have a big impact on how successful your fitness business will be. So, it’s fair to say that choosing gym location is pretty much the biggest decision you’ll have to make when opening a new gym.

When you’re considering owning a gym for the first time (or expanding to a new location) it can be tempting to go on gut instinct. Opening a gym in a location in your hometown, or a place you know well, might seem to make sense.

But, it’s a risky approach.

Want to find the best location for a gym? You’re in the right place! We’ve partnered with the experts to create the ultimate guide to choosing a location when starting a gym.

Let’s get stuck in!

The most effective way to find the best location for a gym

There are many factors that influence the best places to open a gym. You’ll need to consider:

How can you really tell that a location will work for your new club? The answer is simple – look at latent demand.

What is latent demand?

Good question! According to the Cambridge Dictionary, latent demand is:

In short, there’s latent demand in locations where consumer demand for gyms and fitness clubs is not yet met. It helps you understand how many members you’d realistically be able to attract. All based on opening your gym in a specific location.

And why is it so important when choosing a gym location?

Latent demand opens up your eyes. It gives you a genuine idea of just how many people would be willing to join your gym. No guess work needed!

Being able to accurately forecast demand will help you know whether you stand a chance of success in your favoured location.

Need to attract funding and investment to cover the cost of opening a gym like most new gyms do? Providing details of latent demand will reassure your finance partners. And even give you a lot of the info you’ll need to create a compelling gym business plan.

Accurately predict potential to find the best location for a gym

So, how do you work out that there’s enough demand for the gym you’re planning to open at the location you’ve found? How do you know the potential to build a profitable business exists?

Invest in a latent demand report. It’s the best way to get a comprehensive site analysis covering the gym location you’re looking at. And when looking at options to access this type of insight, it’s vital to rely on the right partner.

Good news! There’s no need to shop around if you want to really know that a specific location is the best option for your new gym. You can rely on a partner with unmatched experience in analysing realistic demand for clubs across the UK.

Tapping into 20+ years of experience, with the data to back it up, only Leisure DB is able to truthfully tell you if a site is the best location for your new gym.

What do the most successful operators and owners, have in common? Leisure DB is the only independent market intelligence company they trust. And the first port of call when considering new gym locations.

Want to see what a latent demand report includes?

Sample

Using an example club, Leisure DB have created a sample report to show you what to expect when you invest in a latent demand report for your new gym.

View the sample

Calculating demand for a specific gym location – how it works

Understanding whether a specific location is the best place to open a gym starts with having a site in mind. And an idea of the type of gym or fitness club you want to run.

Armed with this info, Leisure DB can work with you to help you understand exactly how many members you’d be able to attract. As UK specialists, the insight you’ll rely on is unbeatable:

Calculations are influenced by demographics. Local competition. And the plans you have for your club – size, price point, facilities, target audience, etc.

Taking the plunge and opening your own business is a big investment. It’s a risk. The insights you get with this type of report will be the most accurate, realistic way to work out whether you should go ahead with it at the location you’ve found.

Want to understand more about what you can expect? Here’s how the process of working out realistic demand for your club in your proposed location works:

1: Identify a realistic catchment area

The first step is to work out a catchment area for your gym location. This means working out how far people are likely to travel to use your club. And seeing how big the population is within that area.

2: Understand who’s in that area

Next, it’s time to look at exactly who is in your catchment area and really get to know these potential gymgoers.

Using Experian’s Mosaic segmentation groups and types is the best way to get a really clear picture of your location.

Based on 450+ data variables, this way of looking at consumers covers 15 high level groups that break down into 66 detailed types. The groups give you a good feel for an area. And the types give you even more detail.

You’ll get a breakdown showing:

Plus, this stage of the process will give you info about the groups and types close to the location you’re investigating. So you’ll know:

3: Get a visual view

The next step is to put it on a map. So, you’ll understand more about your catchment population. And see exactly where each Mosaic group lives.

Plus, a competition map will be created. This’ll show you where all open and soon-to-open gyms (and pools) are in your area. And give details of their offering and pricing.

This competitive analysis will give you all the info you need on your local competitors. So, you won’t need to do your own analysis for these operators!

Together, the Mosaic map and competition map will draw your attention to important considerations. You’ll be able to see if a specific group or type of consumer is really an opportunity for your business. Or if they’re already catered for.

4: Calculate demand

A catchment area has been created. The local population has been analysed. And a clear picture of your competition has been painted.

So, the final step is to work out how many members you’re likely to attract to your new gym. And then you can take the guess work out of deciding if it’s the best location for you.

This calculation should have a robust model behind it. A model that’s informed by:

And one that continually changes and updates to give you an accurate prediction based on your chosen location. And your plans for your club. Benchmarking you against comparable clubs across the UK.

You’ll get a forecast of the total number of members that your club could achieve. A demand forecast that’s as accurate as it can possibly be. And realistic too.

Get a report for your new gym

Discount

As a Leisure DB partner, the Xplor Gym team is able to introduce you to the Leisure DB team. And help you secure a preferable rate on your latent demand report.

Contact us to learn more

What to consider when finding the best location for a gym

Understanding how many members you can realistically win is the most reliable way to know you’ve found the best location for a gym.

And there are some general factors you can look at. Consider these when you’re finding locations initially:

Target audience

There are many different types of gymgoer. And it’s tempting when you’re opening a new gym to target everyone. However, if you want to differentiate your business and build loyal members, you should be more specific about your audience.

Knowing who you’re trying to attract will help you identify possible locations. So, you’ll find gym locations that tick the right boxes for your prospective members.

Visibility & ease of access

Where the location of your gym is can have a big impact on how well it will work for your business. When looking at locations, think about how easy it will be for people to spot your club.

Will they drive or walk by it often? Is it near other places they may visit regularly? How easy is it to get to?

When people know where your gym is, they’ll be more likely to think of joining. And when it’s easy to use the gym, they’re more likely to stick with you.

Legal & building considerations

Commercial buildings are categorised by what they can be used for in the UK. Gyms and fitness clubs have traditionally been categorised as entertainment venues. Mainly due to high noise levels and footfall.

Previously Use Class D2, gyms now fall under Use Class E – for commercial, business and service use. Selecting a gym location that’s already Class E can mean that you may not need to get planning permission to change the use of a building. Especially if there are no planning conditions mentioning the use class and you’re not making structural changes.

Choosing a location where there are minimal requirements in this area can help keep costs down.

Parking

Unless you’re planning on opening a gym in a city centre where few people use cars to get around, parking is important. Members and your gym staff are all likely to want to park somewhere.

If you don’t have enough spaces, or it’s expensive to park, attracting and retaining members becomes tough. Consider how parking will work at busy times – like when group fitness classes start/finish.

Size & facilities

Think about your planned offering. This will play a significant role in which locations will work for your gym. For example, if you want to run classes, you’ll need space for studios or enough room on the gym floor.

Size will influence how many members you can accommodate and the atmosphere of your club. There’s a fine line between buzzing and packed. And an empty gym can also be off putting for some members.

When looking at potential gym locations, think about what the layout may look like for your new club. Consider amenities you’ll need – like changing rooms. Understand the changes you may need to make to accommodate everything.

Also think to the future. Do you want to grow into the space and expand? Can your location accommodate that?

Cost & lease

The cost of opening a gym can quickly stack up. And the site you choose for your gym can take up a sizeable chunk of the investment you’ll need to make. Location plays a big role in how much it will cost to secure the best space for your gym.

Usually it’s an ongoing cost too. Most likely you’ll have a lease. Leases are usually open to negotiation – most owners will seek legal advice to review and understand terms.

Think about the costs that might be involved in refurbishing the space to make it work for your planned gym. Understand what costs you’ll be responsible for when it comes to the building.

Competition

A little competition never hurt anyone! It can keep you on the top of your game. And show that there’s demand for fitness clubs in a specific area.

You need to know about your local competition though. If you’re going to invest in a latent demand report from Leisure DB, you’ll get a detailed market analysis. As a starting point, be aware of any competitors near your preferred location.

Have a gym location in mind

Once you have a location in mind, you’re ready to work with the team at Leisure DB. That way, you’ll have a better idea if it’ll really be the best location for your new gym or fitness club. And you’ll know if you’ll be able to attract enough members to make it work.

Create a shortlist of sites

Tip

Have a few options in mind for your new club? The Leisure DB team will be able to work with you to provide a solution to narrow that list down. So, you then only need to invest in a full site analysis for the best option.

Best places to open a gym

The best places to open a gym are areas where you’ll be able to attract enough members to make your business work. There are many factors that make a location attractive and the right research will really let you know if demand is sufficient.

Honestly, the best place to open a gym will be different for every business. There’s no-one-size-fits all answer. With the right mix of industry and consumer insight you can find the best location for the new gym you want to open.

Generally places where you’ll often find successful gyms and fitness clubs include:

Retail parks

Retail parks are shopping developments located outside of town and city centres. Often they’ll include big chain names and supermarkets. And that means they have the potential to bring visibility, footfall, and parking for gyms.

City centres

Many city centres are packed during the week with commuters. Creating an audience for gyms and fitness clubs.

The type of club that can operate in a city centre can be restricted to formats that work for smaller spaces. Costs can be higher and you can usually demand a higher gym membership price.

Town centres

Likewise, town centres can work well for gyms and fitness clubs. Shoppers, workers, local residents – footfall can be high. Parking is a consideration in identifying which town centre locations will work.

With recent increases in home and hybrid working patterns, town centre locations can offer an alternative to other areas.

Near transport hubs

Gyms located near train stations and other public transport hubs can attract commuters. People who want to squeeze a workout in on their way to work/home. Plus, it can be a way to bring in people who can’t or prefer not to drive.

Accessibility can be an issue though. If a train line makes it hard to access a club, potential member numbers may be impacted.

The wrap up…

Location plays a big role in the success of gyms and fitness clubs. Perhaps even the biggest role.

Choosing the best location for a gym you want to open is an important decision. There are a lot of factors that influence how well you’ll do in a certain location.

Basing your decision on gut instinct and guess work is risky. You need to fully understand exactly how many members you’d realistically be able to win.

Successful owners and operators of all shapes and sizes have one thing in common. When opening a new gym, they choose to invest in a site analysis.

An accurate, realistic site analysis. One from the only market intelligence company that those in the UK health & fitness industry trust – Leisure DB. So, it’s based on 20+ years of experience, the most complete fitness industry data available, and trusted consumer profiling.

This is the most effective way to make sure you’re opening a gym in a location where you’ll be able to thrive.

Planning to open a new gym? Looking at gym locations? Let us introduce you to our partners at Leisure DB.

Get in touch to chat with our team