--- title: "The HVLP 3.0 Juggernaut" url: https://burnaze.com/article/a34f0991-951e-43c8-afa6-b0b9c420f33d source: "IHRSA / Health & Fitness Association" original_url: https://www.healthandfitnessbusiness.org/apr2026/feature-hvlp-30#new_tab author: "Pamela Kufahl" category: "Gym & HVLP" industry: "Fitness" segment: "Gym & HVLP" published: 2026-04-09T17:14:00.000Z modified: 2026-10-31T13:19:56.620Z image: https://assets.foleon.com/eu-central-1/de-publications-t7rm8g/356077v3r1-2ae7dc/assets/images/screenshots/xz2vjqu55nqxf65z2_fb.png --- # The HVLP 3.0 Juggernaut **TL;DR:** The high-volume, low-price (HVLP) segment of the fitness industry continues to see massive private equity interest, with EōS Fitness and Crunch Fitness valued at $1.5 billion. Private equity firm TSG Consumer acquired EōS Fitness in 2025, citing its attractive value proposition and replicable growth strategy. *By Pamela Kufahl, originally published in IHRSA / Health & Fitness Association on 2026-04-09. [Read the original](https://www.healthandfitnessbusiness.org/apr2026/feature-hvlp-30#new_tab).* ## Key facts - HVLP gyms valued at $1.5 billion - Visitation rates 20% above pre-pandemic levels - Consumers redefine value as access and convenience ## Story The fitness industry is, of course, constantly evolving. At the center of the latest shift is the continued dominance of high-volume, low-price (HVLP) gyms, a segment that has grown from a disruptive pricing play into one of the most sophisticated and scalable models in the market. The valuation of high-performing HVLPs was explored in the Rick Caro Financial Panel on March 17 at The HFA Show. (Click here for more details.) The discussion centered on the remarkable growth of EōS Fitness and Crunch Fitness, both valued at $1.5 billion. Private equity firm TSG Consumer acquired EōS on May 12, 2025. TSG Consumer Managing Director Adam Hemmer, one of the participants on the Financial Panel, shared what made EōS attractive to the firm. He cited the value proposition of the $9.99 member dues and a company-owned model that creates consistent brand values under an experienced management team. This, in turn, creates a replicable growth strategy. “You’ve got a really compelling CEO, and you've got a deep bench behind them,” Hemmer said. “You've got a group of people who are going to deliver on the growth plan." Crunch, on the other hand, reached the same valuation as EōS but with a franchise model. Hemmer notes that while he likes the company-owned strategy, franchising can be a great opportunity that allows for accelerated growth. Still, these valuations say more about the category than each business strategy. ## Investment and growth “There's more institutional interest in HVLP right now than there has been in a long time,” Hemmer explained. “We think that's here to stay with a multi-year if not multi-decade trend. You see a lot of capital excited about investing in the segment.” According to benchmarking from HFA research, HVLP clubs are now seeing visitation rates more than 20% above pre-pandemic levels. But the real story isn’t just traffic, it’s behavior. What was once episodic is now habitual. What was once aspirational is now practical. And what was once a niche segment is now setting the pace for the entire industry. For years, HVLP’s appeal was framed around affordability. Today, that framing feels incomplete. This is what separates HVLP 3.0 from what came before. “The biggest shift is that fitness is no longer episodic; it’s habitual and integrated into daily life,” notes Elaine Jobson, CEO and managing director of BeWell Brands and Jetts Fitness, an Australian-based brand with 129 locations in the country. “People are using gyms more frequently but for shorter, more flexible sessions.” That change in usage patterns is critical. It signals that consumers aren’t just returning to gyms; they are redefining how they use them. From the operator side, that evolution is visible in what members expect from a membership. “Post-2023, people are reevaluating what they consider value,” says Richard Idgar, COO of EōS Fitness. “It now includes community, accessibility, and convenience. That’s all part of the value proposition, and it’s what consumers expect.” HVLP clubs are winning not simply because they're cheaper, but because they're aligned with how people live. ## Changing consumer behavior HFA’s latest insights in the Fitness Industry Traffic (FIT) Tracker reinforce what both executives are seeing firsthand: HVLP is accelerating. “What stood out is that visitation isn’t just recovering; it’s reaching record levels,” Idgar says. “And HVLP is driving a disproportionate share of that growth.” More importantly, frequency is rising alongside membership. “That tells us fitness is becoming more habitual, not episodic,” he added. “We’re investing in infrastructure, technology, and recovery offerings to support that higher usage and turn it into long-term retention.” Jobson sees the same pattern across demographics. “The sustained increase in visit frequency—not just among younger users—signals durability,” she says. “This isn’t a short-term rebound. It’s a structural shift.” For operators, that distinction matters. Growth driven by habit is fundamentally more stable—and more valuable—than growth driven by spikes in motivation. If HVLP 3.0 has a defining impact, it’s this: It has reset the definition of value. “It’s deeper than price,” Jobson asserts. “Consumers are redefining value as access, convenience, and flexibility rather than luxury or exclusivity.” That shift is especially pronounced among younger consumers. “Expectations have evolved,” Idgar says. “Gen Z and even Gen Alpha expect value at every price point. That’s pushed us to continuously innovate and expand our offerings.” At EōS, that has meant introducing recovery zones, boutique-style studios, and premium amenities, all within a low-price framework. The clear implication is that “low price” no longer means “basic.” Instead, HVLP is becoming a platform, one that layers services, experiences, and technology on top of a highly accessible foundation. That platform evolution may be the most important—and perhaps least understood—aspect of HVLP’s growth. “HVLP used to be about maximizing volume,” says Idgar. “Now it operates as a platform where data, technology, and layered services deliver a personalized experience at scale.” Jobson echoed that perspective. “The model has shifted from maximizing memberships to optimizing engagement across an ecosystem,” she says. “Operators are layering in digital products, ancillary services, and partnerships. Data is central to everything.” ## Measuring success This shift changes how success is measured. While it was once about how many members walk through the door, it’s now about how often they return, how they engage, and how their lifetime value evolves over time. Of course, delivering more value at lower price points comes with operational complexity. “The operators getting this right have re-engineered the model around efficiency at scale,” Idgar says. “They’re using technology to reduce labor intensity, standardizing buildouts, and maximizing utilization per square foot.” But efficiency alone isn’t enough. The key is knowing where to invest. “You take cost out where the member doesn’t feel it,” he says, “and double down where they do: cleanliness, friendliness, equipment uptime, and a frictionless experience.” Jobson described a similar balance. “It’s disciplined simplicity,” she says. “Standardize design, centralize procurement, automate where possible, but be intentional about where quality matters most.” That discipline is what allows HVLP operators to scale without eroding the member experience. As HVLP expands and premium brands refine their offerings, mid-market operators are feeling the pressure. “The biggest challenge for the middle is differentiation,” Idgar says. “Consumers have very clear options: accessibility and value, or high-end experience.” That clarity is compressing the middle. “HVLP has improved the quality of experience, while boutique and luxury have deepened specialization,” he says. “It’s become harder to sit in between.” Jobson framed the issue even more bluntly. “Mid-market brands often lack a clear identity,” she says. “They sit between affordability and experience without owning either.” The path forward, for those operators, is reinvention. “The opportunity is to specialize,” Jobson adds. “Either double down on community and programming or move toward a more efficient, value-led model.” ## Market impact The result is what many describe as a “barbell effect,” with growth concentrated at the high and low ends of the market. “It does seem to be splitting between accessibility and experience,” Idgar says. But the lines are not as rigid as they once were. “Value operators are investing heavily in boutique-style studios and recovery,” he notes. “The future may look less like two separate worlds and more like scalable platforms delivering premium experiences.” Jobson agrees—up to a point. “The barbell effect is real,” she says. “But it’s not absolute. There will always be space in the middle for operators who are sharply positioned and locally relevant.” The difference now is that the burden of proof is higher. Perhaps the biggest misconception about HVLP is that lower prices lead to lower engagement. In reality, the opposite may be true. “HVLP succeeds when scale and experience grow together,” Idgar says. “Accessibility brings people in, but innovation keeps them coming back.” At EōS, that includes recovery concepts like contrast therapy, infrared saunas, and assisted stretch services, offerings once associated almost exclusively with premium clubs. Jobson describes the shift as a move toward “efficient excellence.” “It’s not about high-touch service,” she says. “It’s about consistency, reliability, and high-frequency relevance.” In other words, engagement is no longer defined by intensity. It’s defined by habit. Underpinning all of this is technology. “The role is significant,” Idgar says. “We’re using it to provide a high-touch experience with efficient operations, and to give our team more time to engage with members.” For Jobson, technology is what makes the entire model possible. “Apps extend the relationship beyond the club,” she says. “Personalization increases engagement, and automation keeps costs low.” The most effective operators are using technology not just to streamline operations but also to continuously improve the member experience. “It creates a seamless, low-friction journey,” she adds, “while generating data that makes the system smarter over time.” The HVLP surge is also reshaping the broader fitness ecosystem. From an investment perspective, the model’s appeal is clear: predictable revenue, scalable operations, and growing demand. “The next phase of growth will be defined by who can convert accessibility into sustained engagement,” Idgar says. “It’s not just about member growth, it’s also about frequency, retention, and lifetime value.” Over the next three to five years, he sees growth driven by technology, recovery, and deeper integration into healthcare and employer ecosystems. “The winners will build infrastructure, not just locations,” he says. Jobson points to a similar evolution beyond the gym floor. “HVLP has normalized the idea that wellness should be accessible,” she says. “That’s influencing adjacent categories—from beauty to recovery—to rethink pricing and packaging.” With all this momentum, the natural question is: How much runway remains? “I think it’s still early innings,” Idgar says. “There’s so much more where this model can go.” Jobson agrees, with a caveat. “The ceiling isn’t defined by demand; it’s defined by execution,” she says. “Site selection, operational consistency, and brand trust will determine who wins.” There may be saturation in certain urban markets, but overall, the growth story is far from over. The winners won’t necessarily be the cheapest or the most premium. They’ll be the ones who are the most intentional. “The takeaway isn’t that every operator should become HVLP,” Jobson adds. “It’s that every operator needs to understand why it’s working.” The HVLP 3.0 surge is forcing a reset across the industry, not just in pricing, but in how value is defined, delivered, and sustained. Operators who step back and look at the bigger picture will see that this isn’t about competing with low price. It’s about competing with clarity. At its core, this shift is about aligning with how consumers actually live today. “Value is now inclusive of a sense of community, accessibility, and convenience,” says Richard Idgar, COO of EōS Fitness. “It’s all considered part of the gym’s value proposition, and it’s what consumers expect.” That expectation is reshaping decision-making at every level of the business. The following themes are emerging as critical for operators navigating this moment: Health & Fitness Business is a publication of Health & Fitness Business (HFB) is the leading health and fitness industry publication. Published monthly by the Health & Fitness Association (HFA) and distributed free to the industry, HFB offers analysis of the opportunities, challenges, issues, and news that impact the industry. 70 Fargo Street, Boston, MA 02210 1627 Street NW, Suite 1210, Washington DC, 20006 ## Entities - Fitness (sector) - fitness industry (topic) - private equity (topic) - growth strategy (topic) - Crunch Fitness (company) - EoS Fitness (company) - IHRSA / Health & Fitness Association (publication) - valuation (topic) - TSG Consumer Partners (investor) - Pamela Kufahl (person) - Richard Idgar (person) - Adam Hemmer (person) --- Originally reported by Pamela Kufahl, IHRSA / Health & Fitness Association (https://www.healthandfitnessbusiness.org/apr2026/feature-hvlp-30#new_tab). Summarized by Burnaze (https://burnaze.com/article/a34f0991-951e-43c8-afa6-b0b9c420f33d).