Feb 15, 2007 4:30 PM
Interview with Howard Brodsky, CEO of Health & Racquet Club, New York
Q: How do you find enough qualified employees?
A: It’s our biggest challenge. We have someone dedicated to that. We have people posting ads all the time, not in the normal places but in places like Craig’s List. I drive my human resources director very hard. Manager trainees, maintenance people, sale consultants—these people are put through a rigorous process. We are rarely left without someone, but we only have 10 clubs.
If we are in a pinch, our general manager moves to the front desk, which is where they should be 80 percent of the time anyway. The general manager shouldn’t have an office. I did a survey one time where I asked the people what their general manager’s name was. Those who didn’t know, things changed at those clubs. The general manager has to be front and center, the heart and soul of the clubs.
When I got here five years ago, we had some great people and some not so great people.
If I send e-mails at 3 a.m., they are answered right away. I have sales people who wait up for sales leads. They put their Blackberry on vibrate and wake up when I buzz them.
I think we treat our employees really well. In return, I ask for loyalty and hard work.
Q: Are you competitive salary and benefit-wise with other club companies?
A: We are competitive with other club companies in the industry. As other companies become more corporate, we maintain a family atmosphere. There’s no huge chain of command to get things done.
Q: How has technology changed your company?
A: To me, our biggest source of quality leads is our Web site. It’s all about where you are being seated. Every time I go to a Google or Yahoo search, I want to be in the top five [search results]. I get every Web lead that comes in within 30 seconds. I distribute the leads to the people in the clubs. If people are going to fill out information on a Web site, they don’t want to wait 24 hours to get a response. Using the Web site to create business has been huge for us. We get about 15 leads on a weekend day to 40 leads on a weekday. We’ve converted about 29 percent of those into sales.
Q: How does that compare to the conversion rate of walk ins?
A: Walk ins are probably higher. We are creating a prospecting system that will roll out in about six months. Referrals are always the best. Referrals are by far the best because they already have a friend that works out there. Cold calls are harder. Whether we advertise on TV, radio, print—it directs them to our Web site. It also gives phone numbers, but the Web site is the best way to track the leads.
Q: How have you dealt with evolving technology? Do you offer things like online personal training?
A: I know there are some companies that have started with online personal training. I’m a believer that it’s the relationships and the hand holding that makes personal training so successful. It’s the day-to-day contact. I don’t think a pod download or going on the Web for online programming is going to do it.
I’m shocked at the lack of technology that manufacturers have developed at this point. At the last IHRSA show, I was shocked that there weren’t more iPod holding stations or charging stations on equipment. We are always looking at different technologies, but we don’t want to jump on board too quickly. We study the new technologies, watch them and test them and then we roll them out. The greatest technology right now is the simplest one and that’s the TV on the equipment.
Q: So clubs that don’t have a TV on each piece of equipment are behind?
A: I don’t think they are behind yet, but they may be soon. They should at least offer some equipment with them (TVs). We have plasma TVs in some clubs, but over time, each club will have equipment with their own TV, iPod docking station, ability to download, surf the Internet while working out. I think manufacturers are going to perfect that. I don’t think it’s perfected yet.
Q: What do you think about the obesity issue?
A: With diabetes, sleep apnea, high blood pressure—it’s a big issue. Maybe the industry needs to put together a campaign.
I am worried for the health of that population that they will too quickly pass up exercise and nutrition and use pills and surgery instead. There’s no history there (with pills and surgery). We know exercise and diet works. This society is just way too dependent on drugs for a quick cure. Diet and exercise are so big in the media right now. I’m hoping that population doesn’t take the easy way out.
Everyone will get a wake up call—whether it be diabetes, etc., hopefully they will get their call, but we have to make them feel comfortable when they come into our clubs. There are too many facilities –particularly the higher end—that when you walk in, you are looked up and down and that turns off those people. I’ve heard enough stories about people in our clubs who went into a facility and got that response and then worked up their courage to come to our facility and they joined because we made them feel welcome.
Q: Are clubs trying hard enough to reach the obese market?
A: We are scratching the surface. Every report that I’ve read would say that exercise and nutrition is the best way to deal with obesity, but the key is to create an environment that when the obese person walks into a health club, they feel comfortable. When they come in, we have to put them on a program.
The people that I’m most worried about in the obese population are the lower economic people. There’s a poverty link. The lower income people are tied into the fast food market because it’s a lot of food for little money. It’s the lower economic level that needs to be educated about exercise and nutrition.
Q: What are you doing to address the obesity issue among lower income people?
A: Our members are of higher economic stature because of where we are in Manhattan. So it’s just making people feel comfortable when they come in. You won’t walk through our clubs and think this is like the movie “Perfect” many years ago with John Travolta. It’s a diverse population here.
Q: Will you be adding weight loss programs to your facility?
A: It’s possible. It’s something we’re mulling over. I spent several years with NutriSystem. I have concerns about the health of some of these programs—the prepackaged food. When I was with NutriSystem, it worked, but once the program was over, what do I do now? There is not enough education. The yo-yo effect is horrible.
[NYHRC has] an in-house nutritionist. But I am concerned about some of the information that is given out by health club employees that don’t have the education to be giving out that information. We send all our people to Jackie Storm, our nutritionist. She’s educated in that area so we send them to her. Over time we’ll go from one nutritionist to having one in each club. I don’t want to put all of our clients on the Atkins Diet.
I think people go to these weight loss centers for quick fixes. You hear [lose] 60 pounds in six weeks. I don’t think it’s healthy.
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