With Gen Z members driving engagement and revenue growth, the U.K. budget fitness chain plans to open up to 16 new gyms this year
U.K. budget gym operator The Gym Group reported strong half-year results with revenue climbing 8% to £121 million as the mostly 24/7 chain accelerates expansion plans and continues attracting Gen Z, who now account for about 40% of its members.
The fitness chain, which operates nearly 250 low-cost gyms across the U.K., saw membership grow by 5% year-over-year, while average revenue per member increased 4% to drive revenue gains for the six months ended June 30, 2025.
“This strong set of half-year results reflects continued progress against the strategic objectives set out in our ‘Next Chapter’ growth plan 18 months ago,” The Gym Group CEO Will Orr said. “Our high value, low cost proposition continues to resonate, with members visiting the gym more often than ever.”
The gym operator says it’s on track to open 14-16 new locations this year, all funded from free cash flow and taking The Gym Group beyond 250 sites.
The Gym Group opened three new sites in the first half of the year (five year-to-date) and is currently building eight more as part of a three-year plan to add approximately 50 locations.
Newly opened sites featuring updated design elements are “performing ahead of expectations,” Orr said.
A key focus for the expansion involves targeting Gen Z members through growing The Gym Group’s presence on social media, as well as revamping the club’s aesthetics across its marketing and in its gyms.
“Seeing the way future generations, particularly Gen Z, are embracing gyms is one of the reasons we’re so optimistic about the Gym Group’s future,” Orr said on an earnings call this week. Part of The Gym Group’s appeal to young consumers is a student discount, currently listed on its website as 20% off 9- and 12-month memberships.
The Gym Group’s focus on Gen Z expansion comes as fitness climbs ahead of other lifestyle priorities for young consumers, with 44% ranking fitness as their top discretionary spend compared to 36% for streaming services and 36% for dining out, according to The Gym Group’s recent survey of over 2,000 respondents aged 16 to 28.
“In a growing sector, we have once again increased membership, revenue and profit and are well set to deliver full year results at the top end of market expectations,” Orr said.
In addition to standard gym fare, The Gym Group offers personal training and free, unlimited classes ranging from fundamentals and upper-body workshops to strength and conditioning, yoga, Pilates and HIIT, along with small group training and its Hyrox Training Club.
The Gym Group’s upswing mirrors what’s happening across the Atlantic, where Planet Fitness has surged past 20 million members on the strength of Gen Z adoption. Like The Gym Group, the U.S. high-value, low-price giant is leaning into younger demographics to fuel growth, while also testing new perks such as red light therapy and spray tanning as it prepares to lift prices on its higher-tier Black Card membership.
