5 years back Mid Valley secret recipe, RM60K

My cousin was engineer at IGB before, able to chit chat with the branch manager of secret recipe, according to him, 1 saturday already able to earn back the rental.

AEON Bandar Mahkota Cheras, rental RM3.5k per month tokeh selling modded Xbox 360 pun kena sita oleh pihak AEON because outstanding rental for few months, until court case

Rental so high not due to market price but due to goreng2

The more people goreng the higher rental and property prices are. People with money will make more $, poor guys like most of us will only complain and continue to rent while making them richer.

You never know. Some of the guys here launch big big business venture just so that they can get big big bank loan. After load approve they also cabut!

But ya rental is crazy now especially in major retail complexes.

i suspect infinity took the money n cabut..they made loads of deals with company there including the 1 i work...

no need mention 80k, those times square selling RM25 dress rental oso 30-50k....each lot will cost u at least millions...but somehow still cna survive....funny rite...

Accepted banks are not stupid but are you saying that banks have not been coned into approving loans before? People giving securities which are not as valuable as what its valued to be during loan application?

Fact of the matter is....... Sorry this post is about rental and GYM business and I was just sharing my theories only la 

Ya I also mean now la. Still happens la, depends on what level you are in your bank. News from my contacts HQ level, branches still approve AWOL loans la (yes even with the current checks and balances because humans are involve).

I think if you have a sound business model for your GYM business rental should not be a problem. Example is the gym in Mid Valley (California if not mistaken). Been there for ages and I think the rental there is about there (market rate).

Rental is unimaginable la, take for an example, restaurant in in Pavilion, rental for about 5000sqf aprox 180k (might be higher now), they have survived since the early days of the complex. Margins and cost I would say GYM is better than a restaurant ya.

edit: typo

i'm one of the members and hopefully they will refund, already payed for 1 year subscription..sucks

RM1500++ per year

gyms usually hav thousands of members, most of the time u dun c them in the gym cos most of them r inactive members, oni a few r active n hardcore members

n 80k for a gym is considered cheap considering the huge space needed for a gym

i duno la, but u look at fitness first, true fitness etc usually they hav thousands of members n their rental much higher than infiniti la

mayb infiniti r nt popular enuf dats why members oso lesser lo

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

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?

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? 

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? 

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? 

Your analytical skill so far shown was only claiming 692 member must service the gym a month to breakeven. That also is a shallow and inaccurate assessment. Else than that, you have YET to show any constructive figures or arguments that makes us concur with you. Still want to talk about analytical bull crap with me 

"cant even digest what did i meant". The initial questionnaire was to assess why the owner run away, which you claim 80k rental to be very expensive. I have given my points on that 80k is not hard to achieve with proper sales execution plans etc, which is how reputable gyms are still surviving and making heaps of profit until now. Do you ever not considered restaurants that closes down too? And certain MNC especially have partnership with gyms that either pays/subsidize their employees for gyms have you not considered.

"analytical skill like shit and poor critical thinking". Look whoes the one showing analytical skill and critical thinking.

You can continue be barbaric and hurl nonsense around, but it wont change the fact that you shown your idiocy so far. Wanna act smart konon haha. We can let /k judge. 

A place like what??? You think KL sentral a lot of bitness ka?

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