SoulCycle

SoulCycle
Subsidiary
Industry Fitness
Genre Indoor cycling
Founded 2006
Headquarters New York City, United States
Number of locations
 66 (2016)[1][2]
Areas served
 New York, California, New Jersey, Massachusetts, Texas, Maryland, Washington DC, Connecticut, Florida, Pennsylvania, Illinois
Key people
 Melanie Whelan (CEO), Elizabeth Cutler (founding director), Julie Rice (founding director)
Products Fitness classes, indoor cycling bikes, branded merchandise
Owner The Related Companies
Parent Equinox Fitness
Website soul-cycle.com

SoulCycle is an American fitness company and brand headquartered in New York City. Founded in 2006,[3] it offers indoor cycling workout classes in eleven US states.[1][2] Purchased almost entirely by Equinox Fitness in 2011,[4] in 2012 SoulCycle's net revenue equaled $112 million.[5] In 2014, SoulCycle opened studios in Chicago and Boston, eventually branching into Miami, Houston, Philadelphia, and Dallas.[6] SoulCycle filed for an initial public offering in July 2015,[7] with plans to eventually open at least 250 studios.[7] At the time, the Los Angeles Times described SoulCycle as "the biggest indoor cycling chain in the U.S.,"[7] with around 72,000 rides sold per week[7] and 12,000 class participants a day.[8]

According to the New York Times, "[SoulCycle classes] offer mood lighting, a cadre of support staff to help you adjust your bike, custom playlists that match musical beats to choreographed cycling moves and charismatic instructors who pitch your workout as a path to self-improvement."[9] Unlike many fitness companies, the company operates on a pay-per-class model and does not offer memberships.[10] In 2016, Fast Company named SoulCycle No. 28 on its list of the World's 50 Most Innovative Companies of the Year.[11] SoulCycle organizes a number of philanthropic initiatives, including charity rides and its SoulScholarship program, which provides free classes and workshops for youth.[12]

History

Founding and early years (2006-2010)

The fitness company SoulCycle was founded in New York City in 2006.[3] Although sharing a common interest in fitness,[10] SoulCycle's three co-founders came from diverse backgrounds. Julie Rice, a former talent agent from Los Angeles, had moved to New York several years prior. Elizabeth Cutler was working as a real estate broker at the time,[5] while Ruth Zukerman, who left in 2009,[8] was working as an indoor cycling instructor.[4] After meeting in 2006,[5] they discovered a joint interest in operating an indoor cycling company[10] that had "challenging but joyful" workouts held in a "chic" and luxurious environment. Several months after its founding,[5] SoulCycle opened its first studio for indoor cycling classes on the Upper West Side[10] in a former dance studio.[5]

External video
"Bloomberg Enterprise: The Business of Fitness" on Bloomberg Video (October 24, 2014)

With a painted rickshaw on the street as the only allowed signage outside their first studio,[4] the founders established a 45-minute workout using indoor stationary bikes and hand weights. The Wall Street Journal reported that "they added a spiritual and mental component, with riders exercising in dim lighting among scented candles. To make the workouts more enjoyable, they put a heavy emphasis on music. Each class has a custom playlist because the founders wanted every workout to have a different feel."[10]

In an effort to make each cycling class a "consistent but a new experience," the company established a pay-per-class model instead of a monthly gym subscription,[5] with each class initially USD$27.[3] The first SoulCycle studio became profitable within six months of opening.[5][10] A second cycling studio was opened in the Hamptons in 2007,[6] with business increasing significantly as a result.[4] Initially self-funded,[5] early on SoulCycle received an influx of funding from an investment Cutler had in Izze Beverage Company.[5] In 2009 the company began its instructor training program,[6] and the following year the company expanded its locations in New York.[3][6]

Equinox acquisition (2011-2014)

See also: Equinox Fitness

As part of SoulCycle's philanthropy program, in August 2010 Chelsea Clinton held a fundraiser for Haiti at the SoulCycle studio in Bridgehampton, New York, raising $118,783. At that point, the press had also noted that public figures such as Kelly Ripa,[3][4] Brooke Shields,[3] Jenna Bush Hager,[13] Max Greenfield, and David Beckham were SoulCycle clients.[14] In 2011, the company partnered with[6] and was acquired by the Equinox Fitness, a subsidiary of The Related Companies. With SoulCycle now operating as an Equinox brand,[4] Equinox purchased a majority stake of 97%.[15] SoulCycle branched into the West Coast in 2012[6] with a new studio in West Hollywood.[5] At the time, SoulCycle had plans to expland beyond California and New York and into states such as Connecticut.[4] Revenue in 2012 equaled $36.2 million.[15] By September 2013, SoulCycle sold around 70 items in its retail line and had around 6,000 riders use its studios each day.[10] That year the company expanded in the San Francisco Bay Area,[6] and the following year SoulCycle expanded into Boston and Washington DC.[6][10]

SoulCycle gained press attention in January 2014 when Oprah held her sixtieth birthday at a SoulCycle class.[16] Other high-profile SoulCycle clients at the time including models such as Gisele Bündchen, Christy Turlington, Alessandra Ambrosio, and Emily DiDonato,[17] as well as entertainers Lena Dunham, Katie Holmes, and Lady Gaga, who brought custom SoulCycle bikes with her on tour.[4] Forbes reported that in 2014 "people came to SoulCycle for 2.9 million rides, up from 969,000 rides in 2012."[18] With 97% of SoulCycle's revenues coming from New York, San Francisco and Los Angeles in 2014,[18] that year net revenue equaled $112 million, 50% greater from 2013. Net income came to $26.5 million, up 42% from the year before.[5]

Initial public offering (2015)

SoulCycle studio in San Francisco in 2015

SoulCycle expanded into Miami and Chicago in 2015,[6] and by March SoulCycle had 38 studios, primarily in California and New York.[19] Melanie Whelan became SoulCycle's CEO in June 2015.[15] SoulCycle filed for an initial public offering in July 2015,[7] with plans to raise a minimum of $100 million[18] and eventually open at least 250 studios.[7] At the time, the Los Angeles Times described SoulCycle as "the biggest indoor cycling chain in the U.S.,"[7] averaging 72,000 rides sold per week[7] and 12,000 class participants a day.[8] By August 2015, the company had studios in seven states and the District of Columbia[9] and employed 1,500 people.[5] Overall, in 2015 SoulCycle increased its studio count from 37 to 55,[11] all company owned,[20] with stated plans to expand internationally in 2016.[20] In October 2015, as with other artists[21] Demi Lovato premiered her new album Confident to music reporters through a SoulCycle session, with guests such as Sirah also cycling with the group.[22] Lovato had previously stated that SoulCycle had "saved her from the well-documented mental health issues and self-esteem challenges she had in the build-up to writing [her new] album."[22]

Recent developments (2016)

On January 27, 2016, Inc. published an article on outlooks for the IPO market in 2016, with the author naming SoulCycle as the company "that seems to have stoked the most anticipation" with investors for having "many of the qualities that investors like: It's profitable, it's growing, its customers are sufficiently fanatical, and it's got plenty of room to expand."[23] Also in January 2016, a class action lawsuit filed against SoulCycle alleged that some SoulCycle class passes should be legally considered gift cards, and as such, should have expiration dates of five years or longer according to the Credit Card Accountability Responsibility and Disclosure Act.[24] Target partnered with SoulCycle on a tour of the United States later that year, with free classes offered to the public[25] in ten cities including Denver, Minneapolis, Nashville, Atlanta,[11] and Seattle.[25]

In January 2016, the New York Times published an article on Michelle Obama's[13] use of SoulCycle,[26] with Obama at times joined by her daughters in private sessions.[13] Hillary Clinton's presidential campaign held a SoulCycle fundraiser in Hollywood in March 2016, with Chelsea Clinton as host.[27] SoulCycle founders Elizabeth Cutler and Julie Rice resigned from SoulCycle in April 2016 to pursue other projects, while remaining on the SoulCycle board.[15] In 2016, Fast Company named SoulCycle No. 28 on its list of the World's 50 Most Innovative Companies of the Year.[11] That August, the publication estimated that SoulCycle would offer 160,000 classes over the year.[26]

Facilities and staff

As of July 2016, SoulCycle had 62 studios in the United States[1][2] and employed around 1,500 people.[28] SoulCycle's primary market is in New York City followed by Southern California,[7] while it also has studios in Northern California, New Jersey, Massachusetts, Texas, Maryland, Washington DC, Connecticut, Florida, Pennsylvania, and Illinois, where it has a studio in Chicago.[2] Continuing to expand, in 2016 and 2017 SoulCycle will open new stores in Northern California,[1] and will also branch into Houston and Philadelphia.[11] SoulCycle has announced it will open its first non-US studio in Toronto in 2017.[29]

Business model and ethos

Describing itself as an "aspirational lifestyle brand,"[7] SoulCycle markets itself as "the place people come, regardless of their age, athletic ability, size, shape, profession or personality, to connect with their best selves."[9] The co-founders have stated that when forming the company, they were looking to create an environment where New Yorkers would see exercise as fun and enjoyable, as compared to a chore or requirement.[5] Beyond classes, SoulCycle also sells SoulCycle bikes and SoulCycle apparel,[28] releasing around 14 new collections of workout clothes each year.[5] Villency Design Group designed the SoulCycle stationary bike,[30] which launched in 2012[6] with a “split seat” built to increase comfort and "dual binding" pedals. The bikes also have holders for free weights and a resistance knob to change difficulty settings.[31]

"[SoulCycle classes] offer mood lighting, a cadre of support staff to help you adjust your bike, custom playlists that match musical beats to choreographed cycling moves and charismatic instructors who pitch your workout as a path to self-improvement."
— New York Times (August 2015)[9]

The indoor cycling classes are held in dark, often candlelit rooms.[7] With customized playlists for each class,[7] the company has described them as "cardio dance parties"[13][19] that include a warm up,[32] around 35 to 40 minutes of riding,[7] five minutes of upper body exercises[19] with free weights while on the bike,[7][19][32] and a "cool-down stretch" for several minutes.[7][19] SoulCycle claims that each class can burn up to 700 calories.[32] SoulCycle's classes have around 20,000 attendees each week, with around 440,000 clients approximated to be active overall.[33]

According to the Wall Street Journal, SoulCycle's business model is heavily dependent on its instructors, who reportedly develop loyal followings among SoulCycle clients.[8] In a 12-week training program,[8] SoulCycle instructors are trained by the company to be what Bloomberg describes as "friendly purveyors of positive reinforcement."[32] The firm operates on a pay-by-class model and does not offer memberships. Explaining why SoulCycle uses individual classes instead of monthly memberships, co-founder Rice stated, "When you're paying for something individually, you're going to show up and not cancel. Not only does it make the user accountable to actually go to class, but it also makes the provider accountable for the level of the experience."[10] According to SoulCycle's filing with the SEC in July 2015, at the time, "30% of weekly rides are reserved within the first 15 minutes of availability."[7]

Civic involvement

SoulCycle organizes a number of philanthropic initiatives. Since its inception SoulCycle has hosted charity rides, where each individual bike in a SoulCycle class is sold to fundraise for a partnering cause.[34] SoulCycle recently partnered with TODAY on a charity ride for Red Nose Day, which supports children.[35] The company launched its SoulScholarship program in 2014, which provides free courses on "fitness, nutrition and wellness" for youth in New York City, Washington DC, Los Angeles,[12] and Chicago.[36] The program was started after Veronica Everett-Boyce, founder of the Urban Fitness 911 non-profit in Los Angeles, brought two "inspiring" teenagers to a SoulCycle session.[37] "SoulScholars" participate in bi-weekly classes over ten weeks as well as workshops on health and college preparation.[12] SoulCycle employees can also sign up to become mentors of graduates.[12]

See also

References

  1. 1 2 3 4 "SoulCycle brings expansion to the Bay Area". The Mercury News. July 11, 2016. Retrieved 2016-08-11.
  2. 1 2 3 4 "All Studios". www.soul-cycle.com. Retrieved 2016-08-11.
  3. 1 2 3 4 5 6 Saint Louis, Catherine (October 10, 2010). "In New York, a Rivalry Shifts Into High Gear". New York Times. Retrieved 2016-08-11.
  4. 1 2 3 4 5 6 7 8 "Soul Cycle celebrity cult following". Vanity Fair. September 2012. Retrieved 2016-08-11.
  5. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Li, Shan (August 9, 2015). "SoulCycle founders are peddling fun in the gym". Los Angeles Times. Retrieved April 1, 2016.
  6. 1 2 3 4 5 6 7 8 9 10 "Our Story". www.soul-cycle.com. Retrieved 2016-08-11.
  7. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Masunaga, Samantha (July 31, 2015). "SoulCycle, gearing up for expansion, files for initial public offering". Los Angeles Times. Retrieved 2016-08-11.
  8. 1 2 3 4 5 Alter, Cathy (August 20, 2015). "How a member of the cleaning staff became the most sought-after SoulCycle instructor". Washington Post. Retrieved 2016-08-11.
  9. 1 2 3 4 Barrd, Josh (August 7, 2015). "SoulCycle: You Say 'Cult.' I Say 'Loyal Customer Base.'". New York Times. Retrieved 2016-08-11.
  10. 1 2 3 4 5 6 7 8 9 Hong, Nicole (2013-09-18). "How I Built It: Cycling Chain SoulCycle Spins Into Fast Lane". Wall Street Journal. Retrieved 2016-08-11.
  11. 1 2 3 4 5 "SoulCycle - The World's 50 Most Innovative Companies". Fast Company. 2016. Retrieved 2016-08-11.
  12. 1 2 3 4 "SoulScholarship". www.soul-cycle.com. Retrieved 2016-08-11.
  13. 1 2 3 4 Davis, Julie Hirschfeld (January 10, 2016). "A Beat and a Bike: The First Lady's Candlelit Habit". New York Times. Retrieved 2016-08-11.
  14. ↑ Vaidyanathan, Rajini (31 July 2015). "Why are Americans hooked on SoulCycle?". BBC. Retrieved 2016-08-11.
  15. 1 2 3 4 Alter, Charlotte (April 8, 2016). "The Founders of SoulCycle Have Resigned". TIME. Retrieved 2016-08-11.
  16. ↑ Smith, Stephanie (January 26, 2014). "Oprah holds spin class on her birthday". Page Six. Retrieved 2016-08-11.
  17. ↑ Wagoner, Mackenzie (September 3, 2014). "How to Get a Supermodel Body: An Insider's Guide to Who Trains Who". Vogue. Retrieved 2016-08-11.
  18. 1 2 3 Gensler, Lauren (July 30, 2015). "SoulCycle Is Gearing Up For An IPO". Forbes. Retrieved 2016-08-11.
  19. 1 2 3 4 5 Winkler, Rolfe (July 30, 2015). "SoulCycle Files to Go Public". Wall Street Journal. Retrieved 2016-08-11.
  20. 1 2 Winfrey, Graham (November 11, 2015). "How SoulCycle became a cultlike fitness sensation". CNBC. Retrieved 2016-08-11.
  21. ↑ Walker, John (October 6, 2014). "I Survived A Spin Class Taught By Nicole Scherzinger". MTV. Viacom. Retrieved October 8, 2014.
  22. 1 2 Barlow, Eve (October 13, 2015). "Demi Lovato Took My SoulCycle Virginity". Billboard. Retrieved 2016-08-11.
  23. ↑ Weisul, Kimberly (January 27, 2016). "Why Investors are Excited About SoulCycle". Inc.com. Retrieved 2016-08-11.
  24. ↑ Garcia, Ahiza (January 13, 2016). "Soulcycle sued for selling classes that expire in 30 days". CNN. Retrieved 2016-08-11.
  25. 1 2 DiBlasio, Natalie (January 7, 2016). "Target teams up with SoulCycle to offer free classes and bargain clothing". USA Today. Retrieved 2016-08-11.
  26. 1 2 "SoulCycle Wants You To Join Its Tribe". Fast Company. August 8, 2016. Retrieved 2016-08-11.
  27. ↑ Neidig, Harper (19 March 2016). "New Clinton fundraiser: SoulCycle with Chelsea and celebs". The Hill.
  28. 1 2 "About". Soul Cycle. Retrieved April 1, 2016.
  29. ↑ "Toronto". SoulCycle - Official Facebook Page. August 3, 2016. Retrieved 2016-03-14.
  30. ↑ Held, Lisa Elaine (June 6, 2013). "The wizard of wellness design". Well+Good. Retrieved 2015-12-18.
  31. ↑ Kleiman, Jamie. "Soul Cycle - Villency". Villency. Retrieved 2015-12-18.
  32. 1 2 3 4 Picker, Leslie (July 30, 2015). "What Is SoulCycle, and Why Are People Obsessed With It?". Bloomberg. Retrieved 2016-08-11.
  33. ↑ "Studios". Soul Cycle. Retrieved April 1, 2016.
  34. ↑ "Charity Rides". www.soul-cycle.com. Retrieved 2016-08-11.
  35. ↑ Brennan, Danielle (May 19, 2016). "Sweat with TODAY: Join us on the plaza to help children around the world". TODAY. Retrieved 2016-08-11.
  36. ↑ "Inside Our SoulScholarship Program". www.soul-cycle.com. August 26, 2015. Retrieved 2016-03-14.
  37. ↑ Holmes, Sally (March 26, 2014). "Great thing of the day - SoulCycle is starting a scholarship program". Elle. Retrieved 2013-03-26.
Wikimedia Commons has media related to SoulCycle.
This article is issued from Wikipedia - version of the 11/16/2016. The text is available under the Creative Commons Attribution/Share Alike but additional terms may apply for the media files.