The Decibel Why gyms have become so fancy and expensive
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Jan 12, 2026 Graham Isidore, a healthy living reporter at The Globe and Mail, dives into the rise of fancy, pricey gyms. He shares insights from his experience at Sweat and Tonic, revealing how boutique gyms prioritize community and premium services over low-cost models. Graham explores the impact of the pandemic on gym dynamics and membership pricing trends. He also emphasizes the importance of strength training and balanced diets for achieving fitness goals, suggesting that many can thrive without a gym, depending on their objectives.
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Gyms Selling A Luxury Experience
- Boutique gyms position themselves like luxury hotels or spas with design, amenities and services.
- They sell wellness as an experience, bundling classes with pools, saunas and spa options.
Two Different Gym Business Models
- Low-cost chain gyms profit from many memberships and low attendance while boutique studios target heavy users at higher prices.
- Boutique memberships aim to build a committed community of frequent visitors who justify higher monthly fees.
Gyms Operate On Thin Margins
- Gyms had slim profit margins, with Statistics Canada reporting about an 8.3% profitability in 2024.
- Low margins make it hard for smaller gyms to survive and push operators to explore new revenue models.