Viva Leisure shakes up Australian fitness market with million-dollar stake in Boutique Fitness Studios

Viva Leisure Limited has announced a strategic acquisition of a 34% interest in Boutique Fitness Studios (BFS), a master franchisee for four brands from Xponential Fitness in Australia and New Zealand. This AUD 2.0 million investment is aimed at expanding Viva’s footprint in the rapidly growing boutique fitness sector. The deal includes an option to acquire up to 100% of BFS, potentially paving the way for a major shift in the Australian fitness landscape.

Viva Leisure, known for its expansive network of fitness clubs across Australia, is making significant moves to diversify its portfolio and bolster its market position. With BFS controlling franchises for brands like Rumble Boxing, Club Pilates, StretchLab, and CycleBar, this acquisition represents a calculated effort to tap into a sector showing promising growth. Currently, BFS operates 48 studios with 106 licenses sold, and plans to open an additional 25 studios within the next year. The network is projected to generate around AUD 25 million in system-wide sales annually.

This move comes as part of Viva’s broader strategy to integrate its successful growth approach across different fitness market segments. As Viva becomes the largest shareholder in BFS, it also gains a board position, further solidifying its influence over future growth directions and strategic decisions. Harry Konstantinou, CEO and Managing Director of Viva Leisure, emphasized that this partnership would introduce Viva’s proprietary technologies, such as Viva Pay and The Hub, into the BFS network, creating opportunities for enhanced operational efficiencies and cross-brand member access.

Expansion into New Zealand and Technological Integration

This acquisition is more than just a financial transaction; it marks the beginning of deeper collaboration between the two entities. BFS, led by its founder and CEO Matt Gordin, sees this as an opportunity to benefit from the synergies and resources that Viva Leisure offers. Gordin is optimistic about leveraging Viva’s expertise and infrastructure to accelerate growth, particularly with the planned launch of BFS brands in New Zealand.

In terms of technological integration, Viva Leisure plans to implement its member management platform, The Hub, across BFS locations. This will streamline member services and operations, integrating features like door control, app access, and digital signage. Such moves are expected to improve both the customer experience and operational efficiency, potentially setting a new standard in the boutique fitness market.

Strategic Vision and Future Growth

Viva Leisure’s decision to acquire a significant share in BFS is not merely about expanding its geographical reach; it also aligns with its commitment to offering a diverse range of fitness options to its customers. With the BFS brands potentially joining the Viva Pass product, currently under development, there are avenues for increased member engagement and revenue generation. This development is anticipated to create additional revenue streams for both franchisees and the company.

Furthermore, there are plans to rebrand some of Viva’s existing studios, such as Rebalance Pilates & Yoga, into the Club Pilates brand, leveraging the strength and recognition of the larger BFS network. This strategic alignment also presents an opportunity for Viva to promote its other ventures, like the recently launched Supp Society, across an expanded platform, driving further growth.

Bob Kaufman, President of International at Xponential Fitness, expressed excitement over the partnership, noting that the collaboration is expected to drive significant growth for all four Xponential brands in Australia.

Expert Opinion: Strategic Move to Dominate Boutique Fitness Market

Industry analysts view this acquisition as a bold step by Viva Leisure to dominate the boutique fitness sector in Australia and New Zealand. By diversifying its offerings and integrating advanced technologies across its network, Viva is well-positioned to capture a larger market share. The option to fully acquire BFS also provides flexibility, allowing Viva to gauge the market’s response before committing to further investment.

The boutique fitness sector has seen significant growth globally, driven by consumer demand for more personalised and specialised fitness experiences. By securing a strategic stake in BFS, Viva Leisure has positioned itself to be a major player in this niche, potentially influencing broader market trends in the region. However, the success of this venture will largely depend on how well the integration of technologies and brands is managed, along with the ability to capitalise on cross-selling opportunities.