Weight-loss drugs have NOT replaced gyms, Crunch Fitness CEO says

Key Concepts

• GLP-1 Medications: Medications for weight loss that can cause muscle wasting, potentially increasing gym attendance for strength training.
• Results Over Resolutions: Crunch Fitness’s 2025 campaign focusing on specific, measurable goals instead of broad New Year’s resolutions.
• Gym Membership Trends: January typically sees a spike in new memberships (around 12% nationally), with a dip following in subsequent months. December is also a strong month for sign-ups.
• Expansion Strategy: Crunch Fitness aims to open two gyms per week in 2025, increasing to 2.5 per week in 2026, with over 100 leases already signed for 2026.
• AI Integration: Utilizing AI for member outreach, lead management, and online joining processes, while prioritizing the human element of the gym experience.
• 14-Day Activation: The critical importance of a member’s first workout within 14 days of joining as a predictor of long-term engagement.

Crunch Fitness CEO Jim Roelly on Weight Loss Drugs, Expansion & the Future of Gyms

Introduction & Impact of Weight Loss Drugs

The interview centers on the current state of the fitness industry, particularly in light of the rising popularity of weight loss drugs like GLP-1s. Jim Roelly, CEO of Crunch Fitness, views these medications not as a threat, but as a potential benefit. He explains that while these drugs facilitate weight loss, they can also lead to muscle wasting, which in turn motivates individuals to engage in strength training to achieve a “balanced look.” As Roelly states, “every action has a reaction, right? So, yes, you're losing weight, but you have to stay in the gym. You have to eat your protein. You've got to lift the weights in order to get the balanced look that you're looking for.”

Membership Trends & the “Results Over Resolutions” Campaign

Industry reports indicate that approximately 12% of all new gym memberships are purchased in January, a significantly higher proportion than most other months. Roelly acknowledges the typical January rush, noting it’s often followed by a decline in attendance in February, March, and April as resolutions fade. To combat this, Crunch Fitness’s 2025 campaign is centered around “results over resolutions,” encouraging members to focus on specific, measurable goals – weight loss, muscle gain, strength improvement – rather than vague aspirations. This is supported by branded t-shirts for personal trainers and promotional discounts on personal training services. December also proved to be a record-breaking month for membership sales, exceeding previous historical highs.

Expansion & New Gym Openings

Crunch Fitness is experiencing substantial growth, having recently opened a new gym in Merced, California on December 4th, already securing over 5,000 memberships in the city. Roelly outlines an aggressive expansion plan, aiming to open two gyms per week in 2025, increasing to 2.5 per week in 2026. The company has already secured over 100 leases for 2026. The selection of new locations is based on population density, activity levels, and the presence of competition. Roelly emphasizes that Crunch Fitness differentiates itself through its fun, non-judgmental atmosphere, focus on strength training, longevity, and recovery. The long-term goal is to open another 1,000 gyms within the next five years.

Real Estate Considerations & New York City Market

Addressing concerns about market saturation, Roelly acknowledges the high cost of real estate, particularly in New York City. However, Crunch Fitness performs exceptionally well in New York, with over 15 gyms across Manhattan and the boroughs. In fact, some locations are so popular they require satellite gyms to alleviate overcrowding. Interestingly, competition in New York has decreased due to the high costs of rent and labor. Roelly states, “Crunch was born in New York City. We are New York City and we love being there.”

Artificial Intelligence (AI) Integration

The discussion shifts to the integration of AI within Crunch Fitness. Roelly clarifies that the company isn’t facing external pressure to adopt AI, but is proactively exploring its potential. The focus is on identifying the optimal balance between human interaction and AI-powered solutions. Current applications include using AI to respond to member inquiries, facilitate online joining processes, and enhance lead management systems. However, Roelly stresses the importance of maintaining the “human touch” that defines the Crunch Fitness culture, stating, “we’re never going to take the human touch out.”

Member Retention & the 14-Day Activation Rule

Roelly reveals a key indicator of member retention: a workout within the first 14 days of joining. He explains that members who do not work out within this timeframe are significantly more likely to cancel their memberships. To address this, Crunch Fitness offers a “Crunch One kickoff” – a free personal training session designed to orient new members to the gym, discuss their goals, and demonstrate proper equipment usage. As Roelly succinctly puts it, “if you join and don't come in at least once in the first two weeks, it's a high probability you're not going to come in and you're going to cancel.”

Conclusion

The interview highlights Crunch Fitness’s optimistic outlook on the fitness industry, fueled by strategic expansion, a focus on personalized results, and a willingness to embrace technology while preserving its core values. The company is well-positioned to capitalize on both the increasing demand for fitness solutions and the potential impact of emerging weight loss technologies, emphasizing the importance of strength training and a supportive gym environment for long-term success. The 14-day activation rule underscores the critical need for immediate engagement to foster member retention.