Fitness Studio's Shocking Decision: Limited Hours Could Spell Disaster for Loyal Members!

Upswell, a neighborhood wellness club that has made waves in Denver since its founding, is currently taking a strategic pause to reassess its operations and refine its business model. Founder and CEO Heather Holland, who launched Upswell's first studio at 1842 S. Broadway in 2023, recently announced that the club will be temporarily halting membership sales and reducing its operational days as part of this retooling process.

“We were one of the first to bring this … model to Denver, and we’ve really been living the learning curve the last couple of years,” Holland explained. Upswell's other two locations, one at 3636 Blake St. in RiNo, which opened in July, and another at 2271 Clinton St. in Central Park, are now operational only three days a week, down from seven. These locations offer various wellness services, including saunas, cold plunges, compression therapy, and infrared therapies, alongside yoga and pilates classes.

Initially, Holland announced a complete pause in operations two weeks ago. However, considerable member feedback prompted her to maintain limited operations. “It just didn’t feel right to sell a membership when you don’t know what schedule is gonna be,” she stated. Holland is looking to fully reopen the facilities early in the new year, with membership fees likely remaining close to the previous rate of $189 a month. About 80% of Upswell’s revenue stems from its membership model, emphasizing the importance of accessibility for its clientele.

Challenges have arisen, particularly at the South Broadway location, which closed a month ago due to “regulatory ambiguity” surrounding its above-ground cold plunge pool. Holland noted that Denver has differing regulations for above-ground versus in-ground pools, complicating compliance. “Mostly the temperature was the difference,” she elaborated. “There are really clear regulations for 77-degree water and above, but there’s a lack of clarity around cold water.” The RiNo studio features an in-ground pool, mitigating these regulatory hurdles, while the Central Park site has an above-ground pool but operates under more stable regulations in Aurora.

Adjusting the South Broadway location to install an in-ground cold plunge would be a costly endeavor, with renovations potentially reaching six figures. Holland is currently in discussions with her landlord and expects to make a decision on whether to proceed with construction or close the location entirely in the coming months. The cold plunge area is pivotal, as members reportedly spend around 40% of their time using the plunge and sauna.

If Upswell remains at South Broadway, Holland envisions potentially incorporating coworking spaces, enhancing the location's appeal as an innovative hub. “It’s always been our innovation space, and if we reopen that would remain true,” she commented, highlighting the challenges and opportunities presented by being a pioneer in this industry.

The remaining locations will feature more tailored operational strategies, adjusting staffing and hours based on the unique demographics of each neighborhood. For example, the Central Park site caters primarily to families during early mornings and weekends, while the RiNo location sees more late risers using the club throughout weekdays.

“We had been staffed seven days a week, 10 to 14 hours a day. Sometimes during peak times we’d not be staffed enough, and then off-peak be overstaffed,” Holland explained. By customizing schedules to better reflect usage patterns, she anticipates improving member experiences while saving costs. While she did not disclose exact revenue or membership figures, Holland asserted that Upswell boasts “really high” retention rates and employs around 40 staff members, most of whom are part-time.

“In our business, and in any membership-based business, retention is key to long-term sustainability,” Holland emphasized. She noted that one of the important insights gained during this journey is understanding the balance between necessary membership numbers and pricing to avoid the constant chase for new sign-ups. As Upswell navigates these changes, it continues to pave the way for the wellness sector in Denver, adapting its approach based on community feedback and operational realities.