Planet Fitness taking over Detroit’s gym scene….home of Powerhouse Gym founders.
Posted August 26, 2013 12:16 pm by healthclubnews
Detroit’s gym scene expanding, but not for heavy liftersBig muscles. Heavy weights. Loud grunts.
Such were the sights and sounds of the metro Detroit fitness club industry in the 1970s, when brothers William and Norman Dabish opened their first Powerhouse Gym in Highland Park.
To build membership, they gave free passes to hardcore bodybuilders, cultivating a “macho” image for their burgeoning gym chain, which, at the time, was synonymous with good business
.
But bulging biceps and ripped physiques aren’t nearly so attractive in today’s vastly changed gym business environment. As large national chains continue to expand in suburban Detroit and Michigan with newer locations aimed at casual exercisers and families, having a testosterone-drenched gym floor can be more liability than asset.
Powerhouse, to stay competitive, realized it needed to appeal to a broader customer
base and now offers family- and female-friendly amenities. In addition to a pool, racquetball and basketball courts, its new club in Novi features a women-only section.
“Some start off in the women-only section and progress to the rest of the gym as they feel more comfortable,” said Jessica VanGordon, a manager at Powerhouse Gym Novi.
For Planet Fitness, one of the fastest-growing franchises in Michigan, the focus is on keeping out the sort of muscle-bound members that Powerhouse Gym and other gyms tried hard to bring in for years.
The Newington, N.H.-based company markets itself as a “judgment free zone” for novices and those who find traditional gym environments uncomfortable or intimidating.
To that end, Planet Fitness locations have banned all grunting as well as short Spandex, gallon water jugs, body building tank tops and “power movements” like the clean-and-jerk lift. The free weights max out at 60 pounds — hardly a warm-up for some hard core lifters.
“We find that is the best way to keep the environment we want,” said Rachel Hooper, general manager of Planet Fitness in Novi. “The heavier the weights, the more the grunting.”
For those who still didn’t get the message, Planet Fitness clubs have a “Lunk Alarm” with a loud siren and flashing lights that staff will activate if a member is heard making grunts. Those who trip the alarm are given warnings before they’re finally asked to leave, Hooper said.
Planet Fitness has gone from zero to 30 Michigan franchise locations in seven years, with 21 in the metro Detroit area. The company says it plans to have five more locations across the state before year’s end. Its $10 monthly membership fee is among the lowest in the area, and its clubs are staffed 24 hours most days of the week.
Franchise owner Chris Klebba opened the first Michigan Planet Fitness in 2006 inside the former Ford Valve Plant in Northville. He now has eight locations with several in once-empty strip mall space or vacant big boxes, including in Southgate, Waterford, Canton and Novi. Klebba previously owned two independent gyms in Farmington and Northville that have since closed.
He said based on his two decades of experience, a single gym can rarely cater to all breeds of exerciser. “It’s nearly impossible to say I can meet the needs of a guy getting ready for a bodybuilding contest and a person that’s 53 years old and never been in a gym,” he said.
People work out at the very spacious 60,000 square foot Powerhouse Gym at Twelve Mile Crossing at Fountain Walk in Novi on Wednesday, August 14, 2013. The fitness center offers so much for workouts and will soon be expanding their facility for more room and other kinds of fitness training. Eric Seals/Detroit Free Press / Detroit Free Press
The cost to get fit
Some popular full-service local gym chains and membership fees. ■ Planet Fitness — 21 metro Detroit locations. Membership rates begin at $10 a month. No contract or enrollment fees. ■ LA Fitness — 11 metro Detroit locations Entry-level membership begins at $30 per month for non-signature locations. A $99 enrollment fee. No contracts. ■ Powerhouse Gym — 19 metro Detroit licensed locations. Membership rates vary by location. For Novi gym, rate is $29 a month with a one-year contract and $49 enrollment fee. ■ YMCA of Metropolitan Detroit — 10 full-service locations Membership rates vary by location but average $48 a month with a $25 enrollment fee. Financial assistance may be available. ■ Life Time Fitness — six locations Monthly rates range from $50 for individuals to $184 for large families with older children. No contracts. Membership does carry an enrollment fee that Life Time does not publicly release. Source: Fitness club staff.
Fitness club business facts
■ The U.S. is home to 30,500 fitness clubs ■ Approximately 50 million Americans were members of a club in 2012 ■ Michigan has 1,053 clubs, back to 2008 levels after a recessionary dip. ■ 33% to 40% of national clubs are large national chains. ■ 25% to 28% are franchise location clubs like Curves and Snap Fitness. Source: International Health, Racquet & Sportsclub Association. Data as of January 2013
Future locations
Some future planned fitness club locations within metro Detroit ■ LA Fitness plans to open in Sterling Heights, Clinton Township, Roseville, West Bloomfield Township and Woodhaven. ■ Planet Fitness plans to open in Port Huron ■ Life Time Fitness plans to open in Bloomfield Township near Telegraph and Long Lake roads.

Natural light pours into the full court basketball gym as seen from the upper level at the Powerhouse Gym at Twelve Mile Crossing at Fountain Walk in Novi. / Eric Seals/Detroit Free Press
From left, Taylor Williams, 20, of Novi observes trainer Kerstin Grafe, 29, of Plymouth demonstrate proper technique during an exercise class at Planet Fitness in Novi. / Kathleen Galligan/DFP
From left, Powerhouse Gym personal trainer Ben Schimoski, 27, of Novi and his client Lori Wheeler, 40, of Plymouth work out at the Powerhouse Gym in Novi. / Eric Seals/Detroit Free Press
National chains grow
Irvine, Calif.-based LA Fitness is another fast-growing national chain in the metro Detroit market. It currently has 11 locations here and one in Ann Arbor.
Real estate brokers say LA Fitness, formally known as Fitness International, plans to open at least five new clubs in the metro area, in Sterling Heights, Clinton Township, Roseville, West Bloomfield Township and Woodhaven.
“They are definitely swinging into this marketplace,” said Joe Sowerby, president of Anton, Sowerby & Associates in Mt. Clemens and a broker on one of the deals.
LA Fitness goes after a broad cross-section of exercisers with amenities including swimming pools, children’s areas, and basketball courts. It ranked as the nation’s top revenue-generating club company in 2012 by the Club Industry trade journal, with more than 560 locations and estimated revenue of $1.7 billion. LA Fitness bought 171 clubs from Bally Total Fitness in late 2011, including a dozen in Michigan. Company officials did not return multiple messages seeking comment.
Another local competitor, Life Time Fitness, is also known for its family atmosphere and amenities such as tennis courts and indoor and outdoor pools with water slides. The Chanhassen, Minn.-based chain has six clubs in suburban Detroit and says it plans to open a seventh next year in Bloomfield Township near Telegraph and Long Lake roads.
Life Time and LA Fitness are examples of what some retail experts see as a market shift toward large, amenity-filled fitness clubs that become “destination spots” and appeal to customers of varying ages and fitness levels. “They’re catering more to baby boomers, older people — not just those who want to look like Mr. America,” said Ken Dalto, a Bingham Farms-based retail analyst.
He said the industry shift is similar to what happened with drug and hardware stores, with national chains muscling out regional competitors and mom-and-pop shops.
But all-in-one clubs aren’t for everyone. Snap Fitness and Anytime Fitness are examples of national chains in the local market whose smaller clubs can fit into a shopping plaza storefront. These clubs provide members with key cards for all-hours entry. There are also women-only fitness chains.
Powerhouse a global brand
Now headquartered in Birmingham, Powerhouse Gym is still owned by the Dabish family and has more than 300 licensed, independently-owned locations in 39 states and 20 countries.
The company says its licensees buy into the Powerhouse brand with a one-time fee of $25,000 and then monthly $850 dues. They can then do what they want with their club, provided they follow some standard guidelines.
Powerhouse began trying to broaden its appeal to different types of exercisers in the late 1980s and early 1990s. In 2011, it opened its 60,000-square-foot showcase club in Novi within the Twelve Mile Crossing at Fountain Walk complex.
We spend most of our marketing dollars attracting the people who maybe typically wouldn’t come to a Powerhouse, and we’re building our clubs to make them comfortable,” said CEO
Henry Dabish, 32.
While Powerhouse is considering a club location in Detroit’s Midtown area, much of the brand’s recent expansion has happened overseas. There are now 24 licensed Powerhouse Gyms in China, 11 in India and four in Russia, among other countries, according to Henry Dabish.
Most of these international locations are considered high-end gyms aimed at appealing to the area’s top 4% of earners. The overseas clubs often have a Powerhouse Gym history section on the wall, he said, complete with classic photos of the founding Dabish brothers, flexing their gym muscles in the 1980s.
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