Planet Fitness CEO on in-home workouts and reopening gyms

so looking at this phase 1 guidelines

from the federal government it includes

opening gems if they adhere to strict

physical distancing and sanitation

protocols what does that mean for planet

fitness and what does it mean in terms

of your potential timeline in different

states to start to be able to bring

those operations back online yeah sure

so yeah government mandated closure last


pretty much nationwide and President

didn't release the three phases and we

are phase one luckily so right now we're

just waiting for the green light

state-by-state to figure out when we are

able to reopen so we're taking this time

now to really work with our franchisees

on the right protocols for cleanliness

for staffing and also remember etiquette

about cleaning before and after use of

the equipment yeah and I want to get

into what some of those protocols are

gonna look like but over the week on

CNBC reporting that another gym chain

24-hour fitness is winning bankruptcy

now I realize there's specifics about

that company and its debt load but it

also in some ways highlights some of the

challenges that I think are facing the

broader fitness industry right now what

a spike in unemployment does to

discretionary spending for potential

customers and spending on things like

gym memberships also how long it's gonna

take for people to actually feel

comfortable to go back into some of

these more socially crowded environments

like for example gyms how are you

thinking about that yeah sure so you

know I really feel that it's situations

like this people really realize how

important Fitness is and cop-tur

wellness and the studies that show up on

it working out does build your immune

system you know I think Planet Fitness

because my economics are a strong

franchise system we're well positioned

to weather the storm and with the

affordable memberships of just 10 bucks

a month we are a great option especially

people are looking to pinch their

budgets um and we saw this in own ion to

Morgan back when when that happened we

have saw that people trading down from

the higher

memberships to Planet Fitness because we

just have about two per month Chris what

do you have to do for people to feel

safe going back into a facility like a

Planet Fitness where I mean if people

are on bikes are on steel climbers

they're breathing hard so you wonder

about the impact of potential particles

in the air that they're touching free

weights do they have to be wiped down

between each person's use what are the

protocols that you're going to have in

place that people are gonna be wondering

about yeah great question

so the cardiovascular part the first one

was that one there as we see is really

very close together

we've seen that the heard from some of

the CEOs overseas Asia in particular

who's already reopened what they did is

on unbuttoned every other piece of

cardio to help that social distancing

there so we're working on protocols like

that if that's what the states recommend

that we do the strength clip is a little

different than it is pretty spacious as

it is our gyms are 20,000 square feet so

there's a lot of room

one thing though I'm very proud of is we

have sanitation in our stations

scattered throughout our facilities for

decades with cleaning solution and paper

towels a lot of the industry doesn't do

practice that and you know part of our

anacott for our gym members as well as

staff is that we clean equipment before

and after use with this cleaning

solution that's available the

disinfectants so it's more or less just

tightening those those protocols and

etiquette UPS and everybody makes sure

they clean before and after use Chris I

want to go back to something you said

you were talking about the price point

for a Planet Fitness membership in the

fact that you saw in the oh nine crisis

more people trade down and then actually

joined Planet Fitness because of it does

that mean that this is actually a market

share opportunity for you once things

start to settle back to normal and the

worst of the outbreak is over I do

believe that strongly I do believe a

couple of things one is what I said

earlier is that I believe people will

pay more attention to their health

coming out of this as we see the

physical fitness does help the review

system and being healthy and being

physically fit so that on top of the

price point people are going to network

out they're gonna work out just be more

conscious of what they're spending so I

think that is definitely an opportunity

to plan it to even widen the moat bigger

than you before you went into this hey

Chris some others like Barry's boot camp

and some well

have tried to start to find ways to

address an at-home audience right

selling bands selling benches and then

and then teaching the classes virtually

I mean is that a misguided strategy I

mean are you why do you have to count on

everyone coming back into the building

yeah that's a great place to take

technology endeavor climb up two years

ago released our app last summer with a

lot of content on it and just since this

appendix started in our gyms closed we

saw a 250% increase in consumption in

the app at our content so people are at

home utilizing the Clanton's content now

so we also launched Facebook live every

night 7:00 p.m. we would go live on air

and show Facebook your workouts for

20-30 minutes and rate traction the area

nude posting to youtube it we had over

six million views of these videos which

full weeks ago didn't exist so I think

this is really fun accelerated digital

content consumption for the industry

probably three or four years finally

taking us to get there I think it

brought it forward I don't think it ever

replaces bricks and mortar but it's a

great supplement if you can't make it to

the gym and also in the gyms I see

people all the time with their phone

propped up against the wall following a

routine in our club so it's a great

opportunity for us to give our members

the content from our system