From Fitness Clubs to Nautical Bowls Franchise

Peter Taunton, CEO and co-founder of Nautical Bowls, the fast-casual açai bowl franchise with 66 locations across the country, has always had a passion for business ownership and a passion for wellness. That's why, after successfully franchising his fitness club concept, he decided to turn his attention to healthy eating options in 2020 with Nautical Bowls.

Taunton got his start by running a small health club, turning it around and taking the opportunity to gain equity in the business, before opening more and more clubs. Before long, he sold all of them and opened a new small fitness concept. He immediately realized that he had something special on his hands.

“I was absolutely shocked how well the consumer embraced the concept and it didn't take long … they loved the product,” Taunton said. “It was certainly scalable. And I said, ‘Look, I'm going to create a franchise,’ and I did it with zero franchise [experience], but I had a lot of business experience. I think a lot of people don't give themselves credit, but common sense goes a long way.”

Fitness industry background

Taunton attributes some of his success with the fitness concept to the innovative idea of offering health club memberships without contracts. This was a groundbreaking concept 25 years ago, but the wellness industry is evolving quickly. Taunton is passionate about wellness and likes to keep up, or even stay ahead, of trends.

“Biohacking is when you start drawing blood on a regular basis and having an analysis done,” he said. “I've been biohacking for 15 years ... I'm living proof of it. I'm 62. I can do 20 pull ups. I'm in as good of shape as I was when I was 40. I hit the golf ball close to 300 yards, but I exercise just about every day.”

Another huge component of maintaining fitness is, of course, a healthy diet. Taunton has been involved with Nautical Bowls for nearly four years now. The brand’s products, açai bowls, coincide with his passion for health and fitness perfectly, and he believes they will continue to do so for a long time.

Nautical bowls concept

“The açai bowl space is not going away. It's not dessert,” he said. “They're all handmade, plant-based, dairy-free, gluten-free, soy-free, made with organic or all natural ingredients. But that's exactly what the consumer is looking for. We're not serving sugar bombs.”

That said, Taunton acknowledges that the way consumers prefer to receive their food is changing, and as a franchisor, it’s important to adapt.

"Today, our footprint size is 500 to 1,000 square feet. Third-party delivery is on the increase. People don't want to leave their home and I'll pay an extra five bucks for you to bring it to me. I'm good with it. So you don't need this footprint,” he said.

Franchise growth strategy

Consumers are happy to pay for the added convenience and Taunton has the business acumen to understand that it’s a smart move to let them. When it comes to delivery and credit card fees for example, he advises passing those costs on to the consumer. With 66 locations and counting, Nautical Bowls is continuing to grow. For those who want to be a part of it, Taunton has the following advice:

“If you have $100,000 cash, if you've got a net worth of $250,000 or more, I can get you financed,” he said. “That's a small business loan and I can get you in the game. But you got to come in with the heart of a lion — you got to come in wanting to work.”

A summarized transcript of Taunton’s interview with 1851 Franchise’s Nick Powills has been included below. It has been edited for clarity, brevity and style.

Taunton: Absolutely. It all started over 40 years ago when I began running a small health club with the opportunity to gain equity in the business if successful. After selling my previous ventures, I reentered the fitness space and stumbled into franchising with a small concept that gained unexpected success. Despite having zero franchise experience, my business acumen and common sense helped me create a scalable model, leading to the rapid growth of one of the largest wellness brands globally.

Taunton: Bringing exercise accessibility to people's doorsteps was key. Innovations like no-contract memberships revolutionized the industry. Embracing biohacking highlighted the importance of personalized fitness and nutrition for me, and helped me recognize that not all bodies are the same.

Taunton: Adapting to changing consumer needs is crucial. Nautical Bowls downsized its footprint, catering to delivery and takeaway preferences. Scalability, systemization and staying updated with trends are essential for success.

Taunton: Transparently passing on costs to consumers is vital. While third-party delivery adds convenience, embedding costs into pricing ensures sustainable revenue streams. Consumers are willing to pay for convenience, making it a viable model.

Taunton: Leveraging technology and data analytics informs strategic decisions. Prospective franchisees need a strong work ethic and active engagement. Empowering franchisees with affordable opportunities and realistic expectations fosters success.

Taunton: Third-party delivery serves consumer convenience, and passing on associated costs to consumers is reasonable. Proper pricing and transparency ensure sustainable revenue streams. Over time, the industry may see adjustments to align costs and pricing.