Entrepreneur USA - January 2018

(Jeff_L) #1

market or location? What’s


that person’s age, income,


and gender? The core of our


brand is to make it accessible


to all ages and fitness levels,


but the largest percentage of


our customers are 25- to


49-year-old females with


midlevel income. Our


ultimate goal is to figure out


how to get deeper into those


other buckets of consumers,


but if you’re talking about


opening a new location, we


want to make sure we’re


lined up with our biggest


customer group.


Say location A is here on


the corner and it’s doing well,


and we’re trying to decide if


we should open location B


three miles away. Because


we’ve laid the groundwork


for the analytics, we’ll see all


the potential customers in


that area. And it will show


any customers in that area


who are already customers of


location A, so now you can


see the overlap and that


there’s still plenty of potential


for location B—or not, for


that matter. It’s in black-and-


white. If for any reason


location B doesn’t end up


being successful, we can


examine other factors—not


that the location wasn’t set


up for success.


Where do you see Orange-


theory going as a business


in the next year? The next


decade?


Very soon, we’re going to


mature domestically and


have locations in most areas


that can support them. Now


we have a huge opportunity


internationally. We’re already


open in 16 countries. If we


end up doing 1,400 locations


in the U.S., we believe we can


do 5,000 locations outside


the U.S. We started very early


franchising in Canada, and


we have 60 locations there.


Next year our big growth


markets are Japan, the U.K.,


and Australia, where we’ll


open 25 locations next year.


My other long-term goal


is, I’ve started to see that a lot


of folks who need the


Orangetheory product can’t


necessarily afford it. So I


want to develop relationships


with health insurance


companies and healthcare


providers to subsidize our


The next step:


Working with insurance


companies to subsidize


memberships for people


who can’t afford them.

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