soulcycle
one of soulcycle' s main competitors, flywheel, originated from ruth zukerman, one of soulcycle' s own co - founders .
soulcycle cofounders julie rice and elizabeth cutler are leaving their positions at the brand .
a soulcycle indoor biking studio in los angeles, california. , courtesy of urltoken
could soulcycle be the next under armour inc. ? - - the motley fool
testimonials via social media are an important part of soulcycle' s marketing strategy. soul stories are first - person accounts of how soulcycle has changed clients' lives .
the soulcycle crew went to porto to shoot a video in association with @ sonyxperianl .
cycling fitness studio soulcycle announced its intentions to go public yesterday, but whether the soulcycle ipo attracts the same sort of feverish fanfare its cycling classes do will depend on a few things .
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this soulcycle class with instructor lindsay w. on july 9th, 2018 at 5: 30pm is
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this soulcycle class with instructor jenny c. on july 13th, 2018 at 8: 30am is
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this soulcycle class with instructor lisa m. on july 14th, 2018 at 7: 30am is
this soulcycle class with instructor jenny c. on july 14th, 2018 at 8: 30am is
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meanwhile, soulcycle continues its own thrilling ride. in july, the startup filed for its ipo .
julie rice and elizabeth cutler talk about starting and scaling soulcycle at the inc women' s summit .
soulcycle: you say ‘cult. ’ i say ‘loyal customer base. ’ - the new york times
soulcycle does seem to offer something unique: a sense that what it sells is more than a workout. devotees of the chain cite benefits from their engagement with soulcycle that go well beyond the physical .
' they will continue to serve on the board to support the long - term vision of soulcycle. we are forever grateful to elizabeth and julie for creating this incredible company,' soulcycle' s statement said .
the crucial question for potential investors in the soulcycle public offering is whether the company has a true sustainable advantage: a unique factor that will get customers to keep paying more for soulcycle than for its competitors. i talked with two groups of people who led me to think it might: business school professors and soulcycle fanatics .
the soulcycle crew went to porto to shoot a video in association with @ sonyxperianl. to celebrate this awesome project we invite you to come to the premiere at the soulcycle shop on april 28, 6: 00pm !
the pair founded soulcycle a decade ago with one studio on the upper west side of manhattan, new york .
soulcycle made 97 per cent of its revenue in new york city, los angeles and san francisco in 2014 .
she insisted that, unlike many traditional gyms that struggle to retain clientele, soulcycle put the “joy in exercise. ”
with each class costing $ 34 and no unlimited - membership option, soulcycle can get pricey. soulcycle is also known for its famously loyal clients who sign up for the week' s classes at noon on the dot each monday .
flywheel had 34 studios in september last year according to business insider, compared to 38 for soulcycle in march 2015 .
could soulcycle be the next under armour inc. ? @ themotleyfool # stocks $ uaa, $ shak, $ lulu
by 2012, soulcycle had 12 studios; and by 2014, the brash start - up boasted 36 locations. to date, soulcycle has 41 locations around the globe, and believes it can open at least 10 to 15 locations a year going forward. when it is all said and done, soulcycle is aspiring to have a domestic footprint of 250 studios .
clockwise from left: soulcycle founders julie rice and elizabeth cutler outside rice’s jane street home; inspirational words; a class .
soulcycle came under fire early last year when it emerged that some instructors sometimes relegated newcomers to the back of the room .
after starting in a single gym in new york in 2007, soulcycle has spread to 20 locations. soulcycle sells no memberships, but participants gladly pay double the regular class fee for early access to signups for their favorite instructors and time slots .
“i don’t want to compete against others when i work out, ” said katherine petti, a lawyer in washington who goes to soulcycle three times a week. “i want to focus on improving myself, which is what soulcycle focuses on. ”
soulcycle ceo melanie whelan declined an interview request but said in a statement the company sees
tremendous opportunity
in canada .
expansion: within six months, the first studio was turning a profit. soulcycle expanded slowly at first, landing in california in west hollywood in 2012. soulcycle has also branched out into merchandise such as workout clothes, with 14 new collections every year. in 2011, the fitness company equinox gym bought a controlling stake in soulcycle, which helped the company grow faster, rice said .
many cycling studios are vying to capture people who are interested in indoor cycling, but soulcycle is still the undisputed leader. soulcycle is so popular it is embedded into pop culture ;
unbreakable kimmy schmidt
went so far to parody its guru - like instructors .
many fitness fanatics (ourselves included) can' t imagine a world without soulcycle. those 45 sweat - soaked, spiritually attuned minutes in soulcycle' s grapefruit - scented halls are absolutely sacred to us and have become an integral part of our fitness and wellness regimen .
competitors that run on similar models are aimed at the same affluent demographic as soulcycle. barry’s bootcamp, which has outposts in new york, california, nashville, london, and norway, sports a per - class price point almost identical to soulcycle’s and a celebrity following .
in ten years, soulcycle has become increasingly popular, with its most faithful devotees signing up for the most popular classes every monday at noon .
ms. zukerman, known for her emotionally charged teaching style, left soulcycle in november under circumstances that she said she is legally restricted from discussing .
elizabeth cutler and julie rice
have resigned as co - chief creative officers to' pursue new projects,'
soulcycle confirmed to business insider .
however, if planet fitness (plnt) is a flop soulcycle stock will likely face headwinds as markets become flooded with unwanted shares of fitness companies .
i’d be a buyer of the soulcycle ipo myself at those prices, but we’ll have to wait a while longer to find out its exact valuation .
mitchell herself has attended classes at several soulcycle studios and says it' s done a remarkable job creating a unique experience while building a strong following .
you know the workout was good when you leave your first @ soulcycle class and then put allllll the yellow merch in your online shopping cart ...
soulcycle grew out of co - founders julie rice and elizabeth cutler' s dream of an exercise studio that provided an efficient and
joyful
workout. from the
rear lobby
of a space in new york city, soulcycle has grown to a booming business, with dozens of indoor cycling studios .
still, she believes some torontonians, especially those who have tried out a soulcycle class before, will shell out the extra bucks for a ride there .
we founded soulcycle ten years ago with a mission to create happiness and empowerment through exercise. to see what soulcycle has become, the community it created and serves, and the positive impact its had on the lives of our riders and our staff has been humbling ,
cutler and rice told business insider .
the two women who co - founded soulcycle have both resigned from the company - just a year after making $ 90 million each by selling it to equinox .
' many soulcycle instructors insist on preapproval of their front rows, with new clients being asked whether they' d like to take a back seat. in the minutes before class, the soulcycle staff consults the
move list
and considers front - row hopefuls,' the new york times wrote at the time .
would you pay $ 70 to ride a stationary bike for 45 minutes while an instructor yells exhortations at you? at soulcycle, thousands do so every day .
part boutique exercise class, part dance rave, part cult, soulcycle is a carefully marketed and differentiated exercise service. its challenge? to grow its following while keeping loyal customers coming back for more pricey cycling sessions. for that reason, the target soulcycle customer is not just someone who wants a workout, but someone who yearns to take part in a communal experience that is at once trendy, energized, and healthy. to go to soulcycle is to be young and hip .
it started with the build - out of @ 250, a boutique retail mall in roslyn, new york, where his vision included wellness businesses. villency got soulcycle ,
finally! ! @ soulcycle atlanta! this is the only exercise that i’ve been doing consistently for 4 years. i love it! you gotta try it! ! urltoken
julie rice and elizabeth cutler, who met over lunch an elite club in new york city, opened their first soulcycle studio a decade ago on the upper west side .
soulcycle, which filed to go public in july, is now set to expand by opening more studios and delving into at - home cycling workouts, business insider wrote .
in ten years, soulcycle has become increasingly popular. david beckham (pictured left leaving a studio in los angeles) and his wife victoria (right) are both devotees
there have always been gyms. and now there is soulcycle, that has transformed not only indoor cycling (once merely “spinning”) but the larger fitness industry as well .
unlike soulcycle, flywheel makes it possible for members to track their performance by displaying their score on a board and measuring the resistance on their bikes as well as their speed .
founded in 2006 by two new york women sick of “fitness routines that felt like work, ” soulcycle began with a single studio on the upper west side with 31 bikes .
but industry insiders say it may face a more challenging ride north of the border, where some boutique spin studios operate at about half the cost of what soulcycle typically charges .
part of soulcycle' s future success or failure in canada will boil down to cost, he says, noting that many traditional gyms are struggling with consumer aversion to price .
but even if some consumers balk at the cost of sweating like - - or possibly with - - the stars, soulcycle has a few advantages, including experience in canada .
soulcycle' s pricing varies somewhat through the u. s. , but riders in new york city, for example, pay us $ 34 for a single class, with no option for monthly unlimited class rates. cyclists also need clip - in shoes, which soulcycle rents for us $ 3 a class or sells for us $ 150 a pair .
anyone can be an athlete, a rockstar, a warrior... our riders come to us from all backgrounds, levels of fitness and experience. soulcycle is for everyone .
soulcycle, which comes at $ 34 for a 45 - minute class promising a total - body workout, made $ 112 million in sales in 2014 according to the ipo filing .
with planet fitness also scheduled to go public next week at a valuation of about $ 1. 6 billion, soulcycle has chosen either the perfect time or the worst possible one .
new york - based soulcycle opened its first studio in 2006 and has since grown to 67 locations in the u. s. , with four more set to open this winter .
at soulcycle, selling the expensive labor of star instructors is just the beginning. the company has established partnerships with established luxury - goods manufacturers. the buildings are scented with candles from high - end home furnishings brand jonathan adler. a wide range of merchandise, from iphone cases to beach towels to lululemon athletic apparel branded with soulcycle designs, is available for purchase .
soulcycle' s third founder, ruth zukerman, left the brand and started a major competitor called flywheel. zukerman told business insider that flywheel was meant to be inclusive rather than exclusive .
soulcycle prides itself on being
the only class you can do with your eyes closed .
they urge riders to disconnect completely, leaving phones behind and immersing themselves in the experience .
now soulcycle is getting ready to splash into the market. the chic spinning studio chain announced plans to file for an ipo last week. here are a few basics about the company :
in the u. s. , soulcycle hosts parties and corporate events that on average cost around us $ 1, 000 - - another way the company can generate revenue, alvarez adds .
it' s hard not to be impressed with margins and growth like that, but the biggest question facing soulcycle and potential investors as it goes public is how big the company can get .
soulcycle, founded in 2006 by julie rice and elizabeth cutler, is more exclusive. registration takes place online each monday on a class - by - class basis. though such a model has more logistical complications than equinox’s unlimited flat - fee approach, the combination of high prices and the need to make reservations make soulcycle classes a sought - after product that is always in limited supply .
it added that
they will continue to serve on the board to support the long - term vision of soulcycle. we are forever grateful to elizabeth and julie for creating this incredible company .
if investor response to the planet fitness ipo is exuberant, that could confirm that the timing of the soulcycle ipo was spot - on, as wall street hungers for more exposure to the industry .
founded in 2006 by elizabeth cutler and julie rice, soulcycle defines itself as
a rapidly growing lifestyle brand that strives to empower our riders in an immersive fitness experience .
like the fitness brands above, especially lululemon, and other lifestyle brands such as whole foods, soulcycle identifies with the
global trend toward healthy living and a lifelong quest for meaning, wellness and personal growth .
family: rice' s husband, spencer, recently came aboard as soulcycle' s chief marketing officer. cutler' s husband, allen, doesn' t work for soulcycle, but he came up with the name. each couple has two daughters. cutler likes to ride bikes outside, cook and indulge in frozen yogurt. rice likes going to the theater and taking trips to the beach .
like any successful luxury brand, soulcycle seems to have been built with a very deliberate eye toward choosing merchandise and instructors that add to an established air of quality and freshness, one that is clubby without being cliquey. as cohen noted, soulcycle is “really committed to customer service and to making sure we deliver the product 100 percent of the time, the best product regardless of the scale. ”
soulcycle is actually more profitable than shake shack, both on a per - unit and overall basis, and may turn out to be the better investment due to its stronger unit economics. it' s too early to discuss valuation as pricing was not included in soulcycle' s filing, but if the initial market cap is less than $ 2 billion, i' d consider taking a ride .
although instructors seem to comprise the lifeblood of the company, soulcycle is currently facing a class - action lawsuit led by former instructor nick oram, who faults soulcycle with compensating instructors only for their time teaching classes, not for training and other work outside the studio. soulcycle has defended its compensation as in full compliance with the law. new york magazine reported earlier this year that novice instructors can make up to $ 125 to $ 150 for a sold - out class, with a typical starting load of 8 classes per week; they also receive health insurance and agree not to teach spinning elsewhere .
“when people are done at drybar, there are a lot of selfies that happen in our bathrooms that we love, ” webb said. “it’s a good feeling [ to get your hair done ] and you want to share it with your friends. whelan considers word - of - mouth the most important part of soulcycle’s marketing. about 70% of customers who renew every month at soulcycle come from referrals .
like all entrepreneurs, our passion is to create, and that is what we are making the space to do today. as board members and as riders we remain committed to seeing soulcycle succeed .
on one level, it’s obvious why soulcycle is so profitable. in manhattan, it charges $ 35 a class (plus $ 3 to rent special shoes that clip into the bike), with discounts to about $ 28 for participants who buy bulk. a single sold - out soulcycle class in a 60 - bike studio can gross about $ 2, 000, and the same studio can handle nine classes a day .
it may be telling that soulcycle has drawn several competitors that offer similarly upscale indoor cycling experiences but that have not copied what mr. dreyfuss approvingly calls soulcycle’s “hippie - ish logos and creeds. ” studios like peloton and flywheel both offer cutting - edge technology and a competitive ethos. at flywheel, for example, a screen called the “torqboard” shows who is working hardest, though posting your score on the board is optional .
the company is called soulcycle for a reason: its mantra is “we aspire to inspire, ” and the classes take place in a candlelit room that the company describes as “tribal, ” “primal” and “fun. ”
the company says its classes combine a full - body, rhythm - based workout - - what soulcycle calls a curated cardio - dance party - - with a mind / body component designed to inspire riders emotionally .
elizabeth cutler, 48, left, and julie rice, 45, co - founded soulcycle, a chain of cycling gyms that offers pay - per - class luxury exercise. (carolyn cole / los angeles times )
aside from its hollywood devotees, soulcycle turns its instructors into mini - celebrities through snappy profiles on its website. curated playlists, teaching schedules, meal plans and inspirational quotes are all aggressively pumped through facebook and twitter .
“it’s personal in a way, ” said alexia brue, who has compared the two studios for her wellness blog, urltoken. “team flywheel and team soulcycle, it’s like team angelina and team jennifer. ” one woman whispered in the narrow hall outside ms. zukerman’s class at the jewish community center that she thought cyclists who wear soulcycle apparel to a flywheel ride were rude. (two women, seated nearby, were wearing it. )
ms. hickl, 31, was part of an ugly custody battle of sorts between the two studios. last november, she said, she was “unceremoniously” let go from soulcycle without severance pay or much of an explanation .
the genius of soulcycle' s marketing strategy mirrors the genius of their business strategy; they' ve found a way to make each and every interaction feel personalized and premium ,
says lauren crampsie, global cmo at ogilvy & mather .
whether it be the relationship you have with your favorite instructor or a tweet reply you receive after a great ride, soulcycle has mastered the customer experience both in and outside of the studio .
cutler and rice say they wanted to introduce joy into exercise. at soulcycle riders experience a sensory environment that focuses their attention on their ideal selves. the walls are emblazoned with terms, in all caps, like legend, warrior, renegade and rock star. meanwhile, soulcycle' s logo, featuring a yellow bicycle wheel, is not unlike the wheel of dharma found in eastern religions. inspirational words from instructors, their faces lit by the soft glow of candles, urge riders to live their best lives. music is also a driving force behind the soulcycle gestalt, even though it isn' t always spiritual—some classes feature the likes of taylor swift and janet jackson .
soulcycle is emphatically not a gym or a health club. most fitness providers, like crunch, crossfit, and planet fitness, offer unlimited access for a monthly or yearly fee or a tiered version of that model in which more expensive subscriptions give access to more locations. luxury fitness giant equinox, which acquired soulcycle in 2011, runs on the same model. you pay an initiation fee and a monthly rate in exchange for unlimited use at facilities .
a small odyssey order arrived at soulcycle, including stems, freewheels, clothing and more. besides that we also received a big odyssey order about a month ago, which can be found in the
new arrivals
section .
soulcycle comes at $ 34 for a 45 - minute class promising a total - body workout (file picture). the company came under fire last year after it emerged that some instructors relegated newcomers to the back of the room
toronto - - soulcycle, the pricey american exercise chain with a cult - like following, will open its first international location in toronto this march - - with plans to expand to multiple locations in the city and across canada .
then, in june, soulcycle sued ms. hickl for the return of $ 2, 075 the company had lent her to secure an apartment rental. ms. hickl appeared in small claims court four times before the matter was resolved. on sept. 30, it was ruled that ms. hickl would have to repay $ 1, 500 to soulcycle, which flywheel and tricera partners, the venture capital firm that manages it, has offered to cover .
i am a soulcycle disciple ,
says melissa shapiro, u. s. investment president at mediavest .
it is a 360 - degree lifestyle brand that celebrates fashion, fitness, friendship, music and everything in between. i' m hooked for life .
soulcycle' s 45 - minute classes (which range from $ 35 to $ 80) are booked well in advance, and sessions with the most popular instructors sell out in seconds .
we used to say to people,' this is really different; this is going to be an experience that you' ll remember,'
rice says .
[ soulcycle ] will change your attitude about fitness .
but while the math is simple, soulcycle’s profit margins are surprising. if it has found a way to mint money, competitors should be able to swarm into the fancy indoor cycling world and beat it on price. this is not a business with high barriers to entry: full - line gyms like new york sports clubs offer cycling classes to their members for no additional charge. in short, economics 101 says soulcycle’s high profit margins should be eaten away by competition .
when you come to soulcycle, somebody knows your name when you come in the door. we train people. you don’t get a new employee off the street, and their first thought is, “oh i better learn everybody’s name. ”
everyone who works at soulcycle also does soulcycle, down to the i. t. guy. (“he just lost a ton of weight! ” says rice .) in the lobby, the scent of a jonathan adler grapefruit candle is in the air, and the gear they sell is fabulous, with neon logos like posse, cult, and obsessed. “my whole summer wardrobe is soulcycle, ” says lizzie tisch, whose husband, jonathan, the chairman of loews hotels, is also a devotee. “they just get it. ” there’s a fair amount of mingling of teachers and students outside of class, too. “they’re the valentino of exercise, ” says marjorie gubelmann. “they socialize with their clients. ”
not quite under armour but... though soulcycle has the growth rate and the profit margins to match other fitness brand sensations like under armour, lululemon, and fitbit, there' s a key difference. soulcycle isn' t in the business of selling consumer products so the ceiling is likely much lower than it is in the apparel or wearable tech business. the market for global sports and fitness gear is worth over $ 100 billion, meaning a company like under armour with just $ 3 billion in sales has a long path of potential growth ahead of it. soulcycle, meanwhile, competes in the much larger fitness industry, but the high - end, specialized niche it' s targeting is a much smaller component .
both soulcycle (which just introduced a resistance - band class) and flywheel (which offers the torqboard, a real - time way to compare your effort to others) sell more than just an intense full - body workout on a bike. when taught by their most talented instructors, such as the hard - charging holly rilinger (flywheel) or the ultra - relaxed dancing - in - the - aisles stacey griffith (soulcycle), their cathartic rides offer inspiration. (stop laughing. )
with more than three dozen studios across the country, soulcycle is essentially a spinning class on a spiritual quest. to the beat of curated tunes, members pedal through the toughest workout of their lives while high - energy instructors motivate them. marketingwise, soulcycle is one of those rare brands that runs on its own energy. it basically does no advertising, yet it enjoys plenty of exposure thanks to its devoted clientele, including celebrities like david beckham and charlize theron, and religious commitment among clients .
rice points out that money spent on one soulcycle class could as easily be thrown at two or three cocktails in new york .
it is so easy in this city to spend dumb money on things that don' t matter ,
she says .
we made a decision early on to put most of our marketing dollars and efforts towards creating experiences. in fact, when we opened our bridgehampton studio, it was our second summer in business, and we really opened it as a marketing experience because we were really trying to expose more people to soulcycle; at the time, we only had one soulcycle on the upper west side. we really found that running a summer business out in bridgehampton took our very local business and made it more of a citywide destination .
the self - improvement mantra made its way into the company’s initial public offering filing, which says soulcycle is “the place people come, regardless of their age, athletic ability, size, shape, profession or personality, to connect with their best selves. ”
soulcycle’s detractors are prone to look at this sort of talk and say the word “cult. ” but saying a company’s customer base is a cult may just be another way of saying the company has a sustainable competitive advantage in the form of deep customer loyalty .
if shake shack' s experience on the market since debuting six months ago foreshadows soulcycle' s, that would be a promising sign. while the burger chain' s shares have been highly volatile, the stock has more than tripled since its january ipo .
kate hickl, a sinewy - armed former soulcycle teacher now with flywheel, said that some riders who double - dip feel the need to confess, as if loyalty is required. “you don’t need to give me a disclaimer, ” she said she tells them .
soulcycle has also come under fire for being elitist with its famous front - row policy that forbids new riders from riding a bike in the front of the studio. experts have called the safety of the classes'
dance
routines on the bike into question .
in 2011, james s. fell gave soulcycle
a failing grade for exercise physiology and biomechanics
in an article in the los angeles times. he pointed out that neither cutler nor rice had a background in exercises science or any indoor - cycling certifications then .
these classes are based on the theory that it' s a good idea to include upper - body exercises in an indoor cycling class, and therein lies my problem with their approach. according to rice and the many soulcycle videos posted on youtube, class participants do push - ups on the handlebars, high - repetition lifting with 1 - pound weights and a bunch of abdominal twists, crunches and working of core muscles — all while pedaling. (i haven' t been to new york to take a soulcycle class myself. )
but soulcycle also now has muscular competition in the form of flywheel sports — founded in february by ruth zukerman, one of soulcycle’s original three founders and onetime star instructor, with tiki barber, a former professional football player who used to take her class with his wife (mr. barber’s affiliation with flywheel has since ended after news of an extramarital affair surfaced). two other flywheel locations have opened, at the jewish community center on the upper west side, and in sag harbor, n. y. , with five more in the works .
soul much love for the new @ soulcycle studio in atlanta; the only one in ga! this is @ tylerperry outside # soulcyclebkhd. he’s been a faithful member of the tribe for 4 years. hope to see you in class soon tyler! # soulcyclebuckhead # soulcycleatl urltoken
we don’t know yet if the soulcycle ipo will be as richly valued as its cycling classes, but given the company’s small footprint, profitability and potential growth opportunities, i’d be shocked if the initial valuation was less than 30 times its 2014 earnings — around $ 750 million .
and soulcycle is still expanding: this fall, a location will open near union square, within spitting distance of the flywheel flagship. “it’s not like people are leaving our facilities, ” ms. cutler said. “they are telling their friends and more people want to come. ”
in fact, they weren' t even friends; they were set up on a
blind date ,
and before they left their first lunch together, they had an action plan: figure out how to get towels and secure real estate for soulcycle' s first studio .
julie rice (left) and elizabeth cutler, co - founders and chief creative officers of soulcycle attend' creating a movement: the story of soul cycle' during the 2016 sxsw music, film + interactive festival at austin convention center in austin on mar. 15, 2016 .
in its preliminary prospectus, soulcycle says its
elevated, meditative fitness experience
has drawn a following that includes numerous celebrities and generated positive publicity for the studios. comedian amy schumer, for example, recently shared a photo on instagram of her at chicago' s southport location .
to meet demand in manhattan, soulcycle opened on the upper east side (attracting lots of “hard mommies”), in tribeca (across from the new goldman sachs headquarters), and most recently in union square. even those fundamentally against exercise were drawn in, like author jill kargman: “i hate working out, i hate people who work out, i hate people who talk about working out, and i’m full - on waco, texas, about soulcycle. as good as it is for my ass, it’s better for my head. it’s mental floss. ”
' we have created a very kind of supportive and encouraging community of people where it’s not about who’s prettier or who has more jewelry or who has the better workout outfit,' zukerman, who hasn' t discussed her departure from soulcycle in detail, told business insider last year .
the payoff for the brand is apparent. between 2012 and 2014, the chain expanded from 12 studios to 36 and grew its revenue from $ 36. 2 million to $ 112 million. last year, 2. 9 million rides were taken at soulcycle, according to the brand .
soulcycle is a high - end brand with classes starting out at $ 34. it' s not surprising that the company has found success in upscale coastal enclaves like marin county and the hamptons, but its price points may be tested as it expands to more markets across the country .
like soulcycle, shake shack hails from nyc and has carved out a boutique niche and outsized brand name in the much larger fast - food industry. but while mcdonald' s has 14, 000 locations nationwide today, shake shack envisions growing from about 63 stores today to only 450 .
we have created a very kind of supportive and encouraging community of people where it' s not about who' s prettier or who has more jewelry or who has the better workout outfit ,
zukerman told business insider last year, ostensibly alluding to soulcycle' s famously wealthy clientele .
some of soulcycle' s followers are folks you may have heard of, including brooke shields, chelsea clinton, anderson cooper and tom cruise, according to media reports. what' s more, actress and talk show host kelly ripa gushed about the place in an on - air segment last year :
this class, soulcycle, is more than an exercise class. it really is an inspirational class that is as good for your brain as it is for your body .
with buzz like this, it' s not surprising classes sell out within minutes of being posted online .
at least one soulcycle instructor, laurie cole, encourages a competitive atmosphere. ms. cole started a recent resistance - band class by asking who was new and then telling the sheepish five who raised their hands, “good luck. ” she also swore and berated the class like a drill sergeant .
the pro freestyle contest will take place again! from friday 18 may till monday 21 may in scheveningen, the hague. soulcycle crew riders tristan van den berg, joeri veul, jorn tuijnman, anne hofsink and emile bouwman will compete at the street contest on monday! are you joining? read more .
eighty - six percent of the company' s leaders are women (wowza), starting with the ceo, melanie whelan, formerly of equinox .
we create roles for women ,
said soulcycle svp of pr and brand strategy gabby etrog cohen (yet another example of a woman in charge) .
finding a rigorous workout was simple enough, but none seemed to be any fun. none of the gyms they' d seen nurtured a community of overworked, overstimulated urbanites by offering a meditative, blissful experience that also scorches calories. since nobody was doing it, cutler and rice decided to start soulcycle .
with 250 potential studios delivering $ 4 million in revenue apiece, soulcycle would hit $ 1 billion in sales and reach net income in the range of $ 200 million, extrapolating from its current margins. additional income streams like apparel sales, online classes, and international sales would be accretive to those totals .
jessica decostole, 30, went to soulcycle for three years and was surprised to find ms. zukerman gone one saturday when she showed up for her cherished ride. “i was really upset, ” said ms. decostole, a graduate student at columbia. “you get emotionally addicted to ruth’s class. you have a release of energy and stress. ” ms. decostole has become a regular at flywheel, along with many of her former soulcycle mates. for all she knows, they ride at both, but she said she would never. “it would be wrong to go to both of them, ” she said solemnly .
, and organic avenue to sign on as retailers at the space, creating his first bridge into the scene. the relationships with those brands expanded, starting with soulcycle. “first, it was ‘hey can you make some phone cases?' ” he says. “then it was ‘hey, we need a bike. ’”
soulcycle found its first studio space on craigslist; it was a back lobby on 72nd street in new york city and had no outward signage (the studio has since moved to 77th street). they used a yellow - painted rickshaw to grab attention outside, despite the fact that it would get them some parking tickets .
soulcycle takes an enthusiastic approach to exercise that i want to endorse. but i give this company a failing grade for exercise physiology and biomechanics. the whole idea of working one' s upper body while pedaling a stationary bike is not only counterproductive, it can be physically detrimental over time, according to several experts i talked to .
julie: i' d also just like to add that most of our marketing efforts are experiential; it' s very hard to articulate to somebody what makes soulcycle different. you know, you' re swept up in the moment and the sweat is flowing and the adrenaline' s pumping; it' s very easy to understand .
soulcycle is able to charge a premium because of the talent and skill of its star instructors like stacey griffith and rique uresti, whose classes often sell out in minutes. it doesn’t hurt that studios have been planted in the fertile soil of high - income zip codes: soul roslyn, soul water mill, soul marin, soul brentwood .
in its prospectus, it said it sees ample white space for expansion and expects over the long term to grow the footprint to at least 250 studios. over the next several years, soulcycle plans to open 10 to 15 studios a year, and it sees further opportunity abroad, a market it could tap at some point in the future .
elizabeth was a yogi who had trouble losing the baby weight and needed cardio. julie was a runner and hiker looking for that same sense of community in a fitness class. their visions came together in a way we can still see today; soulcycle has a distinct yoga vibe with intense (ly fun) cardio and a tight - knit community .
health club giant equinox bought a majority stake in the company in 2011, and now owns 97% of soulcycle as it prepares for an ipo. the company saw its revenue triple between 2012 and 2014, from $ 36. 2 million to $ 112 million. cutler and rice reportedly each got a payout of $ 90 million when equinox upped its stake last spring .
soulcycle is emphasizing the primary thing i' ve highlighted to my clients and readers: the importance of finding an exercise you love and embracing it with fervor. and it appears to be working. the company has expanded well beyond its manhattan base. studios are slated to open in west hollywood in january and in brentwood in the spring, with more california locations to follow .
julie: elizabeth and i created an environment that we would want to be in. people always remark ,
oh, it' s so ingenious you put hair ties on the front desk ,
or
you put chewing gum there .
the truth is, we really created a place that made us feel like it was our place and we have really extended that to our riders. we always wanted our riders to feel like they would be greeted by somebody who knew their first name. in fact, we always joke around even as we get bigger, the way that we explain our customer service policy to our staff is we want every soulcycle [ studio ] to feel like it' s the only soulcycle. we always try to create little communities so that people not only felt like they were getting great service and that the people that worked at soulcycle really had an interest in... their wellness and their fitness, but also people could socialize with each other, creating an environment that was comfortable and without judgement and empowering. it allowed people to open up and make friends a lot more easily .
unfortunately, neither of the co - founders, julie rice and elizabeth cutler, is an exercise physiologist or a certified cycling instructor. (before opening soulcycle, rice was a hollywood talent manager and cutler sold luxury real estate .) rice told me they worked with an exercise physiologist to create the routines, but that still doesn' t erase my concerns about safety or efficacy .
ms. brue, the blogger, frequents both studios. “i think it speaks to what a great brand soulcycle has created that just like the restaurant of the moment, it feels like the place to be, much more than flywheel, ” she said. “flywheel has created an experience that may be athletically superior, ” but it “doesn’t have that same scene - y feel. ”
whelan called the structure within which soulcycle instructors create their classes “freedom within a framework. ” everyone is trained in the basics of what makes a class, but they also curate their own workouts, playlists, and performances. “ultimately, ” she said, “i think people feel ownership over what they’re creating. and they’re going to bring a different level of energy in the experience. ”
soulcycle advertises itself as a full - body workout that has
revolutionized indoor cycling and taken the world of fitness by storm .
the company currently has 18 locations in and around new york and seven in california, and is planning studios in massachusetts and washington d. c. it boasts an 85% retention rate among riders, and revenue has risen 60% each year since 2010 .
elizabeth and i started soulcycle because we were actually the customers — we were looking for an exercise experience that was going to be fun, exciting, challenging ,
rice explains .
there were a lot of workouts, but there was really nothing out there that was efficient, that was joyful, that was about community, that was something that you really looked forward to .
there is a possibility the soulcycle ipo garners high levels of investor attention, largely because of its business model and, yes, even profitability. the company charges about $ 30 for a 45 minute class (although prices vary by market), and a rabid following of fitness - obsessed patrons register for classes online. the s - 1 filing with the securities and exchange commission briefly details the hype :
of course, there is more to this than the money. once you gain entrée, soulcycle seems to deliver on the thing that griffith described—as the “outside person” looks better, the “inside person” begins to heal. the peloton, moving in motion together, is powerful. “we genuinely care about everyone here: this isn’t just a shtick, ” says cole. “this is a marriage in your soul. ”
some clients have fled soulcycle’s bells and whistles, which have included themed rides like a michael jackson tribute with the teacher in glittery tube top. “too much fluff and gimmick, too much drama, and i love drama, but not in a spin class, ” said christine wovchko, 45, an operating room nurse in manhattan who values being able to track her effort on the torqboard screens at flywheel .
the third potential source of sustainable advantage is a complex business model that must be replicated in full. mr. rivkin cited southwest airlines as an example. imitators have failed to turn southwest’s no - frills airline model into similarly consistent, high profits. it turns out that convincing people it’s fun not to have a seat assignment is harder than it looks. mr. rivkin said he wasn’t familiar enough with soulcycle’s business to know whether it fell into one of these three categories, but he noted that fitness is a difficult, intensely competitive business. when he wants to remind students that an industry can be less lucrative than it looks from the outside, he likes to use a case study about the twice - bankrupt gym chain bally total fitness. soulcycle “had better have something that’s deeply unique and sustainable, ” he said.
soulcycle is a new york city-based fitness company with studios in nine u.s. states . founded in 2006 , it offers indoor cycling ( also known as " spinning " ) workout classes . 
soulcycle is a new york city-based fitness company with studios in nine u.s. states. founded in 2006, it offers indoor cycling (also known as " spinning ") workout classes.
soulcycle is a new york city-based fitness company with studios in nine u.s. states. founded in 2006, it offers indoor cycling (also known as " spinning ") workout classes.