Orangetheory uses analytics for franchise growth, site selection, and international expansion.
Dan Adelstein, vice president of franchise development and real estate for Orangetheory Fitness, talks about how Buxton's analytics have supported the company's growth from 14 locations to an anticipated 700 locations by the end of 2016. Learn how Orangetheory uses analytics for franchise growth, site selection, and international expansion.
Hi my name is Dan Adelstein, I’m Vice President of Franchise Development and Real Estate here at Orangetheory fitness.
Orangetheory is a group personal setting training in a small studio environment, kind of in a competitive environment to help each other. Everybody is wearing a heart rate monitor and they’re working directly with the coach which would be class of up to 24 people in that small setting and you’re rotating anywhere form treadmills, rowers, weight room, and every workout is different every time you come.
Typically we are in a traditional upscale shopping center, where we want to have great co-tenants that are health conscious as well.
When I first got here and Buxton started working with us, I think we had 14 open locations, currently there are 404 locations open as of today. We see ourselves by the end of the year being about 700 locations open. Internationally we started of course with Canada and then went on to Australia. Since then we’ve added anywhere from Kuwait, to Spain, to Peru, to the Dominican Republic, to Mexico City, to Columbia, to England we have four locations. We’ve been very smart methodical saying “don’t go too fast, at the same time make sure you have good data to support why you go to certain places and have many locations that you can be.”
I started using Buxton back in late 2012 to award areas, award territories, marketing purposes, real estate, I got to see what the real data was based on the data that was provided and was amazed at what it gave us into where we wanted to be and why we were there and it really helped us focus on putting our locations in the right spots by utilizing the Buxton data that was provided to us.
I think that confidence has grown over time and it has been amazing that the data has also gotten better as they integrated new features within the program and I think it’s been very helpful that they provided us tools and listen to us on what our needs are, and our franchisees have responded as well. I think it has helped fuel the growth and they feel they’re more confident based on the data we received. Especially when we’ve got more data to provide them that they can utilize to look at and matched up who our member was because we’re able to see who they were by the surveys, but we’re able to take that data to put those locations in the right spots of where the right people are going to be in enough quantities for us to be successful.