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People’s health and well-being has rarely been as in focus as it is now in the face of the global COVID-19 pandemic. For those of us representing the U.S. fitness industry, this crisis strikes a deep chord as it is our mission to offer Americans the tools and resources to maintain and enhance their physical and mental health through exercise, nutrition and community engagement.
The future of the fitness industry, however, has never been as threatened as it is now. The federal government’s emergency relief response has neglected a major segment of the fitness industry — an industry that employs 1 out of every 175 working Americans and which will be essential to ensuring a healthy population coming out of this crisis.
The North American Industry Classification System (NAICS) categorizes health clubs in the same category as casinos, racetracks and amusement parks. As a result, when the 2020 CARES Act exempted restaurants and hotels from the 500-employee maximum, making them eligible for the Paycheck Protection Program, larger health-club companies and chains were left out. (Health clubs and fitness centers and studios with fewer than 500 employees are covered under the Act.)
To compound the issue, insurance companies are denying our claims for business interruption insurance, arguing that pandemics and forced government closures do not qualify because there is no physical damage or obstructed access to our property. This argument falls flat considering government mandated closures by their nature deny access, and given the fact that forced business closures are why business interruption insurance exists in the first place.
The health club industry provides services to 64.2 million Americans and has grown into a $32.3 billion industry, employing 900,000 workers who are committed to helping others reduce health risks, improve their mental well-being, and live longer and happier lives. The fitness industry exists to help people stay healthy and avoid obesity, diabetes, depression, and even compromised immune systems.
Health clubs were forced to close early in this crisis. With doors shut, many in the industry have zero revenue, forcing many health clubs to furlough virtually all of their employees. Many health clubs are using what little cash is left to pay remaining staff members, while also having to battle landlords on rent payments and lenders on debt payments.
This Main Street industry needs protection. Government relief efforts must provide comprehensive solutions that address commercial rent relief, lender payments and business interruption insurance, or provide meaningful loan relief to companies with more than 500 employees. Otherwise, many health clubs and other brick-and-mortar businesses will not survive.
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Additionally, health club operators are concerned that even when the industry emerges from this crisis, operations will be severely restricted by limitations on gatherings. During the gradual closure orders issued across states, counties and cities, most businesses were subject to gathering size limitations: most commonly 10-person limits. This “one size fits all” solution makes no sense if the physical size of a business is not taken into account. Ten people in a 300 square-foot restaurant cannot maintain the 6-foot social distancing guideline. Business capacity should instead be determined by the size of the facility.
We are recommending that eight patrons per 1,000 square feet be the measure to determine capacity so that each patron can safely maintain 6 feet of social distancing. A failure to apply a logical, math-based formula to determining population allowances in businesses when we begin lifting stay-at-home orders will exacerbate the economic crisis.
Beyond distancing measures, health club operators are banding together and creating sensible guidelines to protect their members. These guidelines include eliminating every other piece of cardio equipment, reducing the size of classes to ensure adequate spacing, and providing disinfectant stations throughout our facilities.
A strong fitness industry is vital to the economic and public health of our nation. We want nothing more than to bring back our employees as quickly as possible and get back to delivering on our mission. If action is not taken, an industry dedicated to the health and well-being of our population and the employment of hundreds-of-thousands of Americans will be yet another victim of this crisis.
Kirk and John Galiani are the former owners of Golds Gym International. With Ori Gorfine. chief operating officer, they operate US Fitness Holdings, which owns and operates 54 health clubs in the United States.
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