Profit-first Playbook For Scaling Your Fitness Studio

Lise Kuecker shares the infrastructure, sales tactics and financial benchmarks that turn boutique fitness dreams into reliable revenue

Launching a boutique fitness studio can feel like chasing a moving target. From unpredictable member acquisition to ever-tightening margins, it often seems that profitability is something you grow into — if you’re lucky. But what if you could launch in the black from day one? And what if your roadmap for scaling didn’t rely on charisma and chaos, but systems and proven strategy?

That’s exactly the playbook Lise Kuecker and her team at Studio Grow deliver.

Studio Grow is a boutique fitness consulting firm founded in 2015 by Kuecker, a seasoned entrepreneur who has built and sold multiple seven-figure fitness businesses. Frustrated by the lack of infrastructure and insight available to new studio owners, she created Studio Grow to close that gap, offering data-driven strategies that help studios open profitably, remain profitable and scale sustainably.

That approach is redefining what success looks like. The company has supported more than 4,000 thriving studios in over 40 countries. Its services range from pre-launch programming to multi-location expansion and franchising. With a team of industry veterans, marketing strategists, realtors, sales experts and finance pros, Studio Grow acts as a full-scale operations team for studio founders at every level.

“We put over 450 hours into opening a studio,” Kuecker says. “This isn’t a solo effort. It takes a coordinated team that understands how every lever of the business affects the others.”

Opening Profitably: Dismantling the Myth

If there’s one belief Kuecker is eager to challenge, it’s the idea that boutique fitness studios can’t be profitable from day one.

“That’s a myth,” she says. “Every studio we’ve opened in the last year has been profitable at launch. But that only happens when you get the foundation right.”

That foundation starts with a smart, validated business model and accurate projections. From there, it’s about sales —  specifically the presale strategy, which Kuecker says is one of the most consistently underperforming areas in the industry.

“There’s a misconception that if you open your doors, people will show up. But the reality is, most boutique studios haven’t built a comprehensive sales plan. Pop-ups and collaborations aren’t enough. Are you doing lead follow-up? Is your pricing right? Are your products converting? Are you on track to 250 members in presale?”

She adds that the waitlist process is often broken and poorly managed, and sales teams frequently lack clear structure. Studio Grow addresses these gaps with a multi-disciplinary team that surrounds each client.

“This isn’t about checking boxes. We ensure every decision is data-backed and contributes to a profitable opening.”

One such success: Here Hot Yoga and Strength in Woodbury, New York. With Studio Grow’s help, founder Gabriella Ross sold 189 memberships in presale and generated $86,800 in her first month. The studio is now operating at over 50% profit margin.

“We built everything for success before she opened the door,” Kuecker says.

Data That Drives Performance

Kuecker and her team rely heavily on metrics to guide strategy and track what actually works. She points to several leading indicators that set successful studios apart:

• Customer acquisition cost (CAC): Studios with CACs under $50 consistently outperform others.
• Rolling 13-month retention: A key benchmark to assess compounding member value.
• Earnings per square foot: While technically a top-line figure, it’s a strong predictor of bottom-line success.

“Only 17% of studios operate with sustainable profit margins of 20% or more. We have a profitability problem in this industry, and those numbers show why.”

Kuecker also cites some underappreciated red flags:

• A low percentage of recurring revenue.
• Practitioner expenses that exceed 30%.
• Weak performance in 12-month presales.

“Those numbers tell a story. And when we see the wrong ones, we course-correct fast.”

According to Kuecker, the biggest trap new owners fall into is assuming automation will drive the business.

“Boutique fitness is a high-touch, people-heavy business,” she says.  “The average membership is over $200 a month – that’s a $2,400 annual spend. You have to give people a real sense of value.”

She also sees a pattern of overspending early on: build-outs that go beyond budget, team members hired at too high a salary, she says are common occurrences. 

“Lately, I’ve seen an increase in studios opening because someone has an empty space. But this isn’t a laundromat or a vending machine. It requires a strategic labor model, a recruiting pipeline and serious infrastructure.”

Scaling Smart

As boutique fitness brands look to grow beyond a single location, Kuecker says the same rules apply – but the stakes are even higher.

One of the biggest missteps she sees is underestimating the impact of expansion on staff.

“The leap from one to two locations is hard. At two, you need people leading sales, marketing and team development — but the revenue may not support that yet. That’s why I recommend jumping to three locations quickly if possible. It gives you the leverage to add the right leadership.”

She also emphasizes the importance of having a clear recruiting and onboarding process.

“Many brands haven’t built a teacher training program or defined the growth path for instructors. That has to happen before scale mode.”

Another overlooked area? Regional leadership.

“Boutique fitness doesn’t have enough regional directors. You need someone driving revenue growth, managing teams and maintaining performance across locations.”

Studio Grow also works with early-stage franchisors, helping them avoid the most common pitfalls of scaling too fast.

“Many people want to franchise before they’ve nailed down how to open one location successfully. They don’t know who their ideal franchisee is – and the franchisees hold your brand in their hands. Selling to the wrong people can be disastrous.”

Market testing is also key, she adds.

“You need to know how your model adapts to different pricing structures and consumer behaviors. Regional flexibility is smart.”

She also warns that most franchise support systems are too focused on programming and not enough on operations.

“We’re great at choreography in this industry. But franchising requires sales systems, marketing engines and operations that ensure ongoing financial success. Often that’s the differentiating factor between success in franchising – or not.”

Finally, she says there needs to be a path to capital via investors or financial institutions.

What’s Next for Boutique Fitness?

Kuecker sees a massive opportunity in emerging global markets and niche specialization.

“Pilates is booming, especially in athletic formats. But the most exciting brands are coming out of APAC – Australia, Singapore, Japan. Europe and Latin America are wide open.”

She also believes the most successful studios will be the ones that go deep on specificity.

“Studios that cater to neurological conditions, post-menopausal women, athletes – they’re outperforming. The market doesn’t reward average anymore. You have to be exceptional or unique.”

Even location strategy is evolving. “Some of the fastest-growing studios are now in small markets. You can charge similar pricing as in a major metro, but your operating expenses are lower. That’s high-margin territory.”

As Kuecker and her team continue to build, their work is expanding across categories and continents.

“We’re working on everything from medical wellness centers backed by Dave Asprey to high-end studio concepts in London and Riyadh. Our bespoke consulting team is deep in the trenches on what’s next.”

But no matter the size or scope, Studio Grow’s approach is grounded in one thing: helping founders build with confidence.

“Today’s consumer is different. The playbook has changed. But if you get the fundamentals right –  know who you serve, build systems that scale and surround yourself with expertise – success is absolutely within reach.”

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