The Future of Fitness
Henry, Michael, William, Ibtisam, Will Jr., and Victor Dabish
Powerhouse at the forefront of gym re-openings
BY PAUL NATINSKY
When Powerhouse Gym emerged in the 1970s, the Dabish family grew their single location in Highland Park into an international brand that today includes franchisees across the country and around the world. The Dabishes built their business with grassroots marketing savvy, innovation and a lot of hard work.
They have used the same skills to navigate through the rough waters of COVID-19.
Much like the barbershops, restaurants and bars, gyms were hit hard and early by government-enforced closure mandates. Also much like other closed industries, gym owners began to demand solid numbers on the risks of remaining open and devising ways to make their businesses safe for reopening.
Initially, the fitness facility industry in Michigan did what many forcibly closed industries did—applied for loans and grants to stay afloat. Powerhouse Gym CEO Henry Dabish said March and April were a blur of grant and loan requests. Dabish and his extended family own several Michigan locations and hold them as individual business entities, so each one required a separate filing.
Dabish said all 14 of his company’s directly owned Michigan gyms received Economic Injury Disaster Loans from the U.S. Small Business Administration, and all but one received some grant money.
The biggest challenge for Powerhouse in 2020 was to get info from the government and disseminate it to franchisees. Powerhouse also spent a lot of time setting up unemployment for employees. The system was overwhelmed. PPP loans helped, particularly with employees who are living paycheck-to-paycheck.
Once a business lifeline was established, gym owners began talking to one another. Dabish connected with several other Michigan fitness facility owners, including: Bryan Rief who owns 50 Planet Fitness Gyms in Michigan and Ohio; Alyssa Tushman, a founder and owner of three Burn Fitness locations in Metro Detroit; and real estate investment professional Ed Eickhoff, among others.
During these conversations, Dabish learned that other states allowed gym re-openings as early as the end of May. He discovered through an Ohio franchise owner that the Buckeye State’s re-opening requirements included establishing a professional association to develop and present safe re-opening standards for the industry.
In response to this news, Dabish formed the Michigan Fitness Club Association and its members quickly got to work. They drafted a board, codified re-opening standards, hired a Lansing multi-client lobby firm and met with officials from Michigan Gov. Gretchen Whitmer’s office.
Progress with the government was slow. Dabish said the group got no response from Whitmer’s office. In the end, Dabish said MFCA-submitted standards are stricter than the requirements eventually established by state government.
Powerhouse and other gyms employ a wide array of safety measures, including masks, social distancing, limiting attendance to the gym, cleaning technologies, and ultraviolet cleaning elements in HVAC units—along with “air studies” that diagram how air moves through the facility and through filters.
“I feel like gyms are probably the safest places you can go to right now,” said Dabish. “I don’t think Home Depot or a Costco is doing any of these safety precautions, and they’re packed.”
Gyms tended to take cleaning seriously even prior to the pandemic. Part of gym etiquette is members wiping down exercise machines with sanitizer after each use. Gym employees also seem to be constantly cleaning. Dabish says this already hygiene-conscious industry has ramped up its cleaning regimens by a factor of 10 or 20.
Still, with all of the reversals and inconsistencies in pandemic policy, Michigan gym owners are taking no chances. The MFCA is working with the International Health Racquet & Sportsclub Association, a national industry trade group, to tell a story about why gyms are safe.
Formed of crisis, the MFCA plans to remain intact to continue to advocate for the gym industry in Michigan. In addition to developing safety standards, the group’s agenda includes ensuring due process for further regulations, repealing a federal “tanning tax,” establishing tax credits for gym memberships, insurance discounts for memberships, and preserving an existing sales tax exemption.
Dabish thinks most of the pieces are in place for a 2021 industry recovery. He said New York Governor Andrew Cuomo gave the industry a December boost with a statement describing gyms as safe, declaring them “one of the lowest known drivers of clusters.”
Dabish said many members, upon returning to their workout routines, have taken the time to thank him for working hard to re-open. Despite the outpouring of gratitude from members and increasing understanding about how the virus is—and is not—passed, Dabish said Powerhouse has lost about 25 percent of its members. He suspects he won’t see them back as they likely are simply not comfortable working out at a gym, despite the safety data.
Employees have been another story. Powerhouse has retained most of its managers and key employees, said Dabish. However, the gyms lost many of their personal trainers, whom he supposes have begun offering training services from their homes.
All-in-all, it looks like the gym industry in Michigan has a strong way forward, with disease transmission numbers favoring the facilities, a strong association in place and enhanced cleaning and sanitation practices.
Once again, the Dabishes are at the forefront of innovation in their industry.