CASE STUDY

How does location data analysis support the dynamic growth of Xtreme Fitness Gyms?

FITNESS
100
profitable clubs
72%
year-over-year growth
70%
reduction in analysis time

About the client

Xtreme Fitness Gyms is the fastest-growing fitness franchise network in Poland, with an ambitious goal of opening 227 clubs by 2027. The network's dynamic growth requires a precise approach to selecting new locations to ensure that every new club is a guaranteed success—both for the chain and its franchisees. Consequently, Xtreme Fitness Gyms chose to partner with dataplace.ai, an expert in data analysis, to optimize the site selection process and maximize the profitability of new investments.

With increasing competition in the fitness market, maintaining high-quality partner collaboration has become a key element of Xtreme Fitness Gyms' expansion strategy. The company offers its franchisees full support—from identifying the optimal location to providing a fully equipped club. The partnership with dataplace.ai allowed Xtreme Fitness Gyms to utilize advanced data analysis tools, which significantly streamlined the process of selecting the best sites for new facilities.

Challenge

The dynamic development of a franchise network at such a rapid pace comes with significant challenges. In the first half of 2024, Xtreme Fitness Gyms opened 13 new clubs, with 29 more openings planned for the next 6 months. New clubs are appearing every few days on average, and this growth rate requires an automated and precise approach to identifying locations with the highest potential. Minimizing risk was crucial to ensuring that every new club had a solid foundation for success from the very beginning.

Building a network and expanding at such a pace, especially in the early stages, required a strategic approach. Xtreme Fitness Gyms needed to standardize its process and criteria for selecting new locations to effectively scale operations and maintain a consistent expansion strategy.

The tools previously used by the expansion team offered only basic demographic data. Decisions were based on intuition and the team's experience, which might have worked on a smaller scale, but with the company's ambitious growth plans, implementing a more advanced solution became necessary. Requirements included more accurate competitor mapping and analysis of demographic and market data that could genuinely support the decision-making process, especially in the fragmented fitness market.

The challenge was to create a tool capable of quickly and precisely identifying the most promising locations while providing the expansion team with hard data and analytics to minimize risk and maximize the profitability of new clubs.

The location assessment process is crucial for us, which is why we dedicate so much time to the individual analysis of potential investment sites. Both fieldwork and the analysis of hard data regarding a given area are essential to us, which is why we use advanced analytical tools to support this process. What allows us to effectively stand out in the market is our use of innovative technology and the implementation of the best available solutions, such as placeme. – Filip Puchalski, Commercial Director Xtreme Fitness Gyms

Solution

To meet the challenges of dynamic growth, Xtreme Fitness Gyms decided to integrate the placemeapplication into its processes, which provides the team with a wide range of key data needed to make sound location decisions in just a few clicks. Thanks to placeme, the expansion team can quickly and accurately obtain information that supports the selection of the best sites for new clubs.

The placeme application enables the acquisition of detailed data on foot traffic, surrounding characteristics, and the demographic profile of residents in a given area. This allows for a precise assessment of a location's potential for a new investment, which is key to success in the highly competitive fitness industry.

Thanks to placeme, the Xtreme Fitness Gyms team has access to a range of analyses and metrics, including:

  • Number and demographic profile of residents – a precise understanding of where the target audience is located, which facilitates effective planning for new clubs.
  • Presence of competition – analysis of the existing market and identification of niches that may be untapped by other chains.
  • Presence of new developments – discovering strategic locations in developing neighborhoods, which enables early entry into promising markets.
  • Avoiding cannibalization with existing network locations – avoiding situations where opening a new club could negatively impact foot traffic at existing locations.
  • Traffic and population density – assessing the market potential of a given location based on real-world traffic data.
  • Traffic generators and retail/service hubs – identifying locations such as shopping centers, office buildings, and other customer-attracting facilities to increase the chances of a club's success.

Using placeme has revolutionized the location selection process for Xtreme Fitness Gyms – decisions are now based on hard data rather than just intuition, allowing for more precise and accurate choices. This enables the team to effectively identify locations with the highest potential while minimizing the risks associated with opening new facilities.

Our ambitious plans are becoming reality. Scaling our business to this extent in such a short time is the result of combining our team's hard work and dedication with the modern technologies we have integrated into our decision-making process. Thanks to advanced analytical tools like placeme, we are able to make informed and accurate decisions that allow us to effectively expand our network of clubs across Poland. It is this synergy of people and technology that gives us a competitive edge and enables us to achieve our goals faster than anyone could have expected. – Filip Puchalski, Commercial Director Xtreme Fitness Gyms

Results

Xtreme Fitness Gyms is well on its way to achieving its goal of creating the largest fitness chain in Poland, with clubs located in areas that guarantee profitability, success, and customer satisfaction. By executing its ambitious plans for 2024, the Xtreme Fitness network will reach over 100 profitable clubs this year, representing an impressive 72% year-over-year growth.

Thanks to its partnership with dataplace and the implementation of the placeme application, Xtreme Fitness Gyms is fully leveraging the potential of advanced technologies and analytical tools in its expansion process. Placeme enables the fast and precise acquisition of comprehensive information about potential locations, reducing analysis time by up to 70%. This allows the expansion team to use their expertise more effectively by focusing on sites with the highest potential.

Professionalizing decision-making processes has allowed the company to significantly minimize risk and optimize operations related to opening new clubs. The effective use of modern tools supports Xtreme Fitness in executing its growth strategy, bringing the chain closer to its ambitious goal of opening 227 fitness clubs by the end of 2027 across Poland.

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