An expert says rising operating costs and sluggish membership gains could make profitability more challenging for some club owners.
A Planet Fitness gym in Pasadena, California. Photo:
Planet Fitness is closing a handful of clubs.
In May, Planet Fitness lowered its financial forecast for the year after lower-than-planned membership growth in the first quarter. Its shares subsequently fell 31.2 percent. “2026 is off to a slower-than-expected start from a net member growth perspective,” CEO Colleen Keating said, adding that the company is pausing a planned national Black Card price increase pending a broader pricing review.
It now expects systemwide same-club sales growth of about 1 percent, down from a previous forecast of 4 to 5 percent.
What businesses can learn from the Planet Fitness closures
Beverly Bradshaw, a California attorney who primarily represents
Beverly Bradshaw, a California attorney who primarily represents franchisees and has advised boutique fitness owners, explained that closures alone aren’t alarming.
Refreshed leadership advice from CEO Stephanie Mehta
“A system of nearly 3,000 clubs will always have locations that close, usually because a lease is up, a shopping center has changed, or a newer club nearby is a better site,” she told Inc. “So, the footprint isn’t the warning sign. What the closures do show is that the easy growth phase is over, even for the industry leader.”
Bradshaw also pointed to several possible causes of the slow sign-ups, starting with saturation. “Planet Fitness has spent years capturing the casual, first-time gym-goer in most U.S. markets, and many of those people are already members or have already tried it and quit,” she said.
Competition is another factor. Other low-cost chains have imitated the format, often offering newer equipment or more amenities at a similar price. Because most consumers purchase a gym membership in January, Bradshaw said, “a soft start to the year is very hard to make up later.”
