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NEWS
Ken Campling says Bannatyne is repositioning as a wellness provider – locations with spas are 'much more profitable'
POSTED 05 May 2021 . BY Tom Walker
On average, spas add 20–25 per cent to the profitability of a Bannatyne club Credit: Bannatyne
Gyms with a spa are 20-25 per cent more profitable than gyms without
– Ken Campling, FD, Bannatyne
Bannatyne focuses on wellbeing, as it looks to bounce back from the effects of the pandemic lockdowns
Financial director, Ken Campling, said clubs with spas are up to a quarter more profitable
All of the group's clubs offer physiotherapy and 48 of 71 have a spa
The group is expecting to report pre-tax losses of around £20-£21 for the year ending December 2020
Health club operator Bannatyne is repositioning itself as a wellness provider, as it looks to bounce back from the effects of the pandemic lockdowns.

Speaking exclusively to HCM, Bannatyne' FD, Ken Campling, says the decision has been partly driven by the fact that clubs with spas are up to 25 per cent more profitable.

In a wide-ranging interview (click here), Campling said: "The main strategy will be positioning ourselves as a wellness provider, which I believe can be a USP for us.

"We have all the elements needed to look after people’s wellness. We have gyms, but we also have physiotherapy on every site, café bar areas for a social element and spas at 48 of our clubs.

"Gyms with a spa are more profitable than gyms without: on average they add 20–25 per cent to the profitability of a location.

"We want to integrate the offering around these and get that holistic message across."

Campling said the repositioning will also require a training push across the workforce.

"We need to train our staff so they know more about each part of the business and we need to be more persuasive with our members," he said.

"We want them to understand it isn’t just about fitness, but about feeling better as a person – physically and mentally – and that taking advantage of more of our complementary services will help them achieve this."

As a result of the strategy, Bannatyne expects to be back making monthly profits by the end of the year.

"I believe we’ll be profitable again, month by month, by the end of 2021," Campling said.

"Early sales have been very encouraging. While I know the trend will drop off slightly, I’m hopeful there could even be a ‘January’ this September, for example, once people are back from their UK staycations – perhaps even foreign holidays – and are thinking: ‘I’ve got to get back to the health club now’."

Like other UK operators, Bannatyne has been hit hard by the pandemic and the subsequent lockdowns.

The group is expecting to report pre-tax losses of around £20-£21 for the year ending December 2020 – a huge drop from the pre-tax profit of £12.5m it achieved in 2019.

Campling also revealed that the group lost more than a third (34-35 per cent) of its members – a total of around 70,000 – during the pandemic.

He also revealed the company has permanently closed two clubs – Birmingham Priory and London’s Russell Square – which bringing its estate to 71.

Both sites were coming toward the end of their leases and – in contrast with the new focus on wellness – had no spa.

To read the full interview with Ken Campling, click here for HCM Issue 3, 2021.
Sign up here to get the Spa Business and Spa Business insider weekly ezines and every issue of Spa Business and Spa Business insider magazines free on digital.
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Following reports of a bid to buy the Bannatyne Group, we get the lowdown on how the business has been faring and plans for 2021 from its de facto CEO
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News   Products   Magazine
NEWS
Ken Campling says Bannatyne is repositioning as a wellness provider – locations with spas are 'much more profitable'
POSTED 05 May 2021 . BY Tom Walker
On average, spas add 20–25 per cent to the profitability of a Bannatyne club Credit: Bannatyne
Gyms with a spa are 20-25 per cent more profitable than gyms without
– Ken Campling, FD, Bannatyne
Bannatyne focuses on wellbeing, as it looks to bounce back from the effects of the pandemic lockdowns
Financial director, Ken Campling, said clubs with spas are up to a quarter more profitable
All of the group's clubs offer physiotherapy and 48 of 71 have a spa
The group is expecting to report pre-tax losses of around £20-£21 for the year ending December 2020
Health club operator Bannatyne is repositioning itself as a wellness provider, as it looks to bounce back from the effects of the pandemic lockdowns.

Speaking exclusively to HCM, Bannatyne' FD, Ken Campling, says the decision has been partly driven by the fact that clubs with spas are up to 25 per cent more profitable.

In a wide-ranging interview (click here), Campling said: "The main strategy will be positioning ourselves as a wellness provider, which I believe can be a USP for us.

"We have all the elements needed to look after people’s wellness. We have gyms, but we also have physiotherapy on every site, café bar areas for a social element and spas at 48 of our clubs.

"Gyms with a spa are more profitable than gyms without: on average they add 20–25 per cent to the profitability of a location.

"We want to integrate the offering around these and get that holistic message across."

Campling said the repositioning will also require a training push across the workforce.

"We need to train our staff so they know more about each part of the business and we need to be more persuasive with our members," he said.

"We want them to understand it isn’t just about fitness, but about feeling better as a person – physically and mentally – and that taking advantage of more of our complementary services will help them achieve this."

As a result of the strategy, Bannatyne expects to be back making monthly profits by the end of the year.

"I believe we’ll be profitable again, month by month, by the end of 2021," Campling said.

"Early sales have been very encouraging. While I know the trend will drop off slightly, I’m hopeful there could even be a ‘January’ this September, for example, once people are back from their UK staycations – perhaps even foreign holidays – and are thinking: ‘I’ve got to get back to the health club now’."

Like other UK operators, Bannatyne has been hit hard by the pandemic and the subsequent lockdowns.

The group is expecting to report pre-tax losses of around £20-£21 for the year ending December 2020 – a huge drop from the pre-tax profit of £12.5m it achieved in 2019.

Campling also revealed that the group lost more than a third (34-35 per cent) of its members – a total of around 70,000 – during the pandemic.

He also revealed the company has permanently closed two clubs – Birmingham Priory and London’s Russell Square – which bringing its estate to 71.

Both sites were coming toward the end of their leases and – in contrast with the new focus on wellness – had no spa.

To read the full interview with Ken Campling, click here for HCM Issue 3, 2021.
Sign up here to get the Spa Business and Spa Business insider weekly ezines and every issue of Spa Business and Spa Business insider magazines free on digital.
RELATED STORIES
FEATURE: Interview: Ken Campling


Following reports of a bid to buy the Bannatyne Group, we get the lowdown on how the business has been faring and plans for 2021 from its de facto CEO
Bannatyne says impact of COVID-19 could be £30m


Duncan Bannatyne, CEO of Bannatyne Group, which runs spas, health clubs and hotels, says the coronavirus shutdown could cost the company £30m.
Duncan Bannatyne takes back the reins at Bannatyne as CEO Justin Musgrove steps down


Duncan Bannatyne is to return to frontline involvement in the health club, spa and hotel business that bears his name, as current CEO, Justin Musgrove, announces his departure for a new role in the Middle East.
MORE NEWS
First glimpses of new coastal retreat inspired by Scotland’s wildlife and heritage
The Isle of Mull Hotel & Spa, part of Crerar Hotels, will reveal its all-new wellness facility called the Driftwood Spa on 5 July 2021.
Social enterprise salon launches to support young people interested in a future in beauty industry
Scotland’s capital city of Edinburgh has welcomed its second hair and beauty salon operating as a social enterprise – named Brave, Strong, Beautiful (BSB).
G7 Summit to be hosted at sustainable beachfront spa hotel in Cornwall
Eco-hotel and beachfront spa resort Carbis Bay Estate and Hotel in Cornwall, UK, will host leaders from Canada, France, Germany, Italy, Japan, the UK and the US for the 2021 G7 Summit from 11 – 13 June.
Guerlain launches first spa in Israel with design inspired by Jerusalem’s architectural heritage
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Spa Life UK focuses on education and self-development in a COVID-19 landscape
The Spa Life UK Convention 2021 promises to be a celebration of excellence and innovation, with a unique focus on education and self-development. [more...]

Iyashi Dôme sets industry standard for touchless infrared sauna technology
Iyashi Dôme has been an industry pioneer for 20 years and is responsible for creating the authentic Japanese long infrared sauna. [more...]
+ More featured suppliers  
COMPANY PROFILES
MCCM Medical Spa

Mesosystem created the brand MCCM in 2006, following the desire of a concept to achieve the best r [more...]
+ More profiles  
CATALOGUE GALLERY
+ More catalogues  

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ResortSuite mobile. Deploy your own fully branded app. Give your guests unlimited access to your resort with real time booking capabilities, dining reservations, itineraries, member profiles and more... Find out more...
+ More videos  

DIRECTORY
+ More directory  
DIARY

 

13-14 Jun 2021

2021 FHT Virtual Conference

Online,
20-21 Jun 2021

International Esthetics, Cosmetics & Spa Conference

Las Vegas Convention Center, Las Vegas, United States
+ More diary  
 


ADVERTISE . CONTACT US

Leisure Media
Tel: +44 (0)1462 431385

©Cybertrek 2021

ABOUT LEISURE MEDIA
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