u canot duno. Must provide me with information before we can compare with established gyms. True fitness must be established gym thats why they have thousands of members. How about this infinity gym? How long they have been operating for gym business in kl sentral? If they can survived for few months means they can break even for the business. If just new business, means they have insufficient members to cover the cost of operation and tauke needs to cabut or tauke gamble lost all the money or failed in investment. So we need more information before compare.
Plus TS open the thread with RM80000 per month and tauke cabut and gave an implication that the tauke cannot afford the rental. @@

I am confused. NU Sentral is the elephant, or the fly?

NU Sentral is elephant.

NU Sentral will also have a gym later, don't know it will survive or not. But then it will be a chained gym -- Celebrity fitness I think.

Actually if you look at business as a whole GYM is just one time investment for your equipment and renovation, which is about the same for a restaurant with different cost. I would think a GYM will require more initial investment due to the equipments required (but then who buys now a days when you could lease right?). Then day to day operation a restaurant will have cost, a GYM would not have food cost nor wastage cost. A GYM is just pure marketing and sales meaning if you can sell many many membership packages you will have good profit.

Nah I would have to disagree with you when you say restaurant is more profitable. With the correct marketing plan GYM business has a bigger potential for profit.

I would have to say you need to do more research on businesses.

Mind sharing which bank you working for?

bro, whilst 80k rental for gym business is ridiculous, your replies are shallow and calculations are ineffective by all means. You need to understand how the revenue in gym membership are generated. Its not like in restaurants pay per entry simple as that. Most gym subscribers are running on auto-debit, but there are some who pays lumpsum. You cannot just divide it by the tenure duration and then use simple division to estimate number of members required. Thats stupid.

Normally when a gym is newly established, its rather difficult to commit as member pool is still low. Thats why the sales force in gyms are like hookers, giving free trials and shat just to get you signed. Once you sign, ur a confirmed monthly revenue for them, normally at least for 1 year+. Some pay lumpsum of thousands initially which helps alot in mitigating costs and generate + cash flow. And by using common sense, after some time say 1 year+, you have accumulated larger pool of members who generate 10 fold income/month for you.

And dont be surprised that, not all who sub to gym will commit themself 100%. Mostly get lazy and give up after some time. Thus, new signing and compounding $ is the determinant of how they survive. Whilst in a restaurant, you have a typical number of seatings with typical number of patrons per day, but in gym no. Nevertheless, 80k is bloodsucking but not very surprising

yeah, we just can continue to complain while the rich is getting richer..

i see, sorry to hear about that..

yah loh.. macam impossible to have 1k members.

he thinks all gym members sure everyday go gym wan, lol

a gym cn hav thousands of thousands members but regular wans not even hundred

Because u so smart compare with fitness first which earn good income. Then i also can compare with secret recipe who generate massive income over the years in mid valley. You see you totally failed deeply in terms of comparing..@@
A gym not like restaurant. Somemore like in Malaysia. Malaysia having the largest fat people in south east asia. Thats why running a successful restaurant can generate massive income rather than gym. You open more gym then lesser members in that area.

I am just roughly and simply calculate how much members the infinity requires in order to break even for 80k rental. Of course if calculate clearly cannot be like that. and also sometimes people just coming for daily usage and so. And u need to tell me how many years the gym had been operating for business and the purpose is just to figure out why the tauke needs to cabut lari.

If 90000 per month rental include operating cost, means 90000/130=692 members. This is just a simple calculation and the least members that the gym must have in order to break even. It doesnt matter even they pay lump sum or whatever most important can cover the 90k.

This post has been edited by pandamao: Apr 14 2014, 07:19 PM

Are you an idiot or wannabe smartas$ who thinks working in a bank makes you smart.

1) Let me tell you. A typical commercial gym is over 20k+ sqft in size. Infinity kl sentral is over 30k sqft. True fitness in USJ is triple storeyed with 60k sqft. Truefitness, fitness first most likely had been > 5 years, and stream of income has been stabilized should they maintain constant new signings. Thus, Rm 80k rental is in fact not a very big deal. Your secret recipe is barely 10k sqft in size. And in fact, you factored in 10k for overhead costs which is rubbish. One private trainer already roughly earns 2k+. In a commercial gym easily you can find more than 5 of them. Tax, insurance, equipment lease, PU bills already can go >20k. So effectively put it 80k + 40k. With this huge amount, which business owner is dumb enough to open one gym had he not considered these potential cost? Why most of them survive, answer this. And btw, this infinity gym has been in service only ~12 months.

2) ""It doesnt matter even they pay lump sum or whatever most important can cover the 90k"". If pay monthly sub --> (90k - monthly sub), whereas if pay lumpsum --> (90k - lumpsum). If apply some brains you can see which helps to produce cash surplus better for that month. It means alot to stay alive for the month. Eitherway, no.3

3) In commercial gyms, pay per entry is almost absent. Its not ghetto gym that you pay Rm7 per session. So your estimation of "692 members MUST service every month" to breakeven is not applicable. Normally minimum sub for these gyms are 12 months. If you just newly open a gym you cant expect to sign 692 members on the first month; thats godsent. It is you ACCUMULATE NEW SIGNINGS throughout the months until you reached 692 members CONCURRENTLY, and that the 692 members have monthly financial commitment to your gym for average 1 year. Thereafter, your new signings can be considered profit for the club. If you dont understand, go draw using a periodic Gantt chart or something.

Having said that, track record, reputation, and especially sales force/marketing is the breadwinner for the business. Without them, your basically fked. Its not like in F&B business where foods are distinctive in taste against one another. TGI friday tastes different from Ben's. Both have shared customer base. Conversely, does a 10kg dumbell in F.First is distinctively different from a 10kg dumbell in infinity?

Do you even lift btw?

Firstly how close are you to Secret Recipe? Are you so close till you know their account books or your knowledge is just base on hear say (gossip)? (maybe the info is from your bank since you work in one )

As an earlier forum member mention, gym's can have a very extensive membership base cause not all members will be there every hour, everyday. That means you can sell and sell your membership and mind you the membership is charged every month for a fix contract duration usually minimum 1 year. So if the gym capacity is say 50 members at any one time you could have a membership of more than 100 time of your maximum capacity (not sure maybe as high as 500times? anyone care to share).

Restaurant is very different cause you have a fix sitting capacity and basically how many times can you turn your sitting capacity during each meal time (ie lunch, dinner). Projection of turnover is calculated on how much your targeted charge per head based on your menu items. So like the one in Pavilion we target about rm80 (dinner, for lunch is much less than that) per head therefor for 10 pax (1table) the average bill should be about rm800 with some tables doing less and some doing more but then there is still a maximum (no of pax) that you can actually do per day. Also do mind if you do a breakdown of occupancy vs hours in a business day you will find a restaurant is mostly empty most of the day except during meal times. We are talking about restaurant not cafes here. I would classify Secret Recipe more of a cafe with dining facilities oppose to a proper formal dining restaurant.

We only make money if you customers walk in and makan, restaurant don't make money if no body eats anything whereas a gym is still making money when nobody is there cause membership is already paid for the whole month/year and whether you go or not it doesn't really matter, see the big difference?

I'm not sure if you get me or not or you just want to win your point that a restaurant is more profitable than a gym... if so I would gracefully let you win cause you have not been able to present any sound logic as to why my point is wrong. What you have done is take one example and use it as a yard stick and generalize the whole industry as such, which to me is wrong and frankly very shallow.

Some restaurant/cafe's are very profitable (yes) but most are just breaking even or even losing money. Gyms like fitness first have made tons and I do mean tons of money for just one franchise. I too would like to add that I'm sure there are lots of small gyms that are trying very hard to turn a buck. I would say the same is true for most business.

Guys there is no such thing as a golden goose business, get what I mean?

BTW you still have not mention which bank you attached with?

thanks for your sharing

Hahaha. their boss is my mum cousin's hubby. Surely closer than you by alot. Btw you are comparing with fitness first, so for sure i will be comparing with secret recipe and surely you are too funny by thinking doing gym can anytime good business than running a restaurant like secret recipe in mid valley
Btw this thread is about infinity and you did not provide any detail for the infinity gym at all and then compare with fitness first at mid valley.

This post has been edited by pandamao: Apr 15 2014, 02:33 AM

Hahaha..i can answer you, you are just too smart until wanna becoming an idiot. All the way i never supported for this gym because of 80k per month plus as you said overhead cost can go up to 40k. SO you indeed an idiot i would say because you argued stupidly without any direction.

Plus the 692 is just based on all members with ownership to breakeven of course the first month the gym wont have 692 members. So owner must bears to make loses in early stage.

And btw this is not bank, having cash surplus will not benefit you much unless u put it in fixed deposit but just 3%++ per year. Unless u wan to invest with the surplus or buying more equipment which you are just too dumb or having cash surplus for early months just to make ur bank statement nicer but if could not break even for 120k per month you are still an idiot running for this infinity thats why tauke also needs to cabut

Looking at your reply again, it kept repeatedly showed that your arguments are baseless and pointless. Quote me some figures, and prove some CONSTRUCTIVE points should you have any. I've done that why not you? Second, you FAIL to understand the revenue structure in gym and merely compared it to Secret Recipe (F&B) which is apple and orange. If I need 692 active patrons for a restaurant to breakeven DOES NOT MEAN the gym needs the same amount of people carry weights a month, because MEMBERSHIPS ARE RECURRING and NOT ALL MEMBERS ARE ACTIVE GOERS. Fixed seatings in a restaurant is like a GLASS CEILING on your salary, but a gym does not.

Do you understand simple english after explaining to your deaf ears multiple times, or you just want to win the argument for the sake of saving your face?

And what crap you taking out 3% fixed deposit thingy? Idiot we talking about monthly cash flow here. I wonder which bank employed you

Next time, before wanna show you're the boss in a thread, do more research and be knowledgeable bout something. I earned my stripes and why not you share your background in investments since you're the smartas$ here?

Wahahaha. The big problem is u were being stupid bcoz u argue without direction and arguinf crap. U could not analytical skill cant even digest what did i meant. Wanna showinvestment skill also dun act like idiot lar know all the calculation is useless if analytical skill like shit and poor critical thinking

are u that smart?

And over the long run also u could not have 692 members in ur gym to break even ur 120k cost per month no wonder failure like you could ended up cabut lari la.hahaha. wat a noob tot people pay lump then got cash surplus very happy. Haha wat anoob. U think u r bank go invest with the money? hahaha. Yea go invest later lose all tat why u need cabut so pity.

nak sewa murah bukak la kat komplek PKNS ....itu pun sewa dah naik