Planet Fitness expands with new gyms nationwide after CEO change

Planet Fitness has long been known for its relatively low rates. Now, it’s becoming known for something else: a major national expansion.
“I decided to start coming here when it opened, to save money,” said Gabriela Romero, who was using the cardio equipment. Her switch from nearby Boston Sports Club meant her monthly gym membership bill fell from $40 to $25.
The new two-story Planet Fitness in Allston was humming on a recent weekday afternoon as people ran on treadmills, lifted weights, and stretched in open floor space.
The Allston gym, which opened Jan. 14, is the Hampton, New Hampshire-based corporation’s ninth franchise location in Boston, and the 88th in Massachusetts. It is part of the company’s push to open new gyms around the country, a wave of growth spurred by a CEO change that has helped propel Planet Fitness to its highest stock price since its initial public offering in 2015. (The company was founded in 1992.)
The recent growth marks a comeback for the company after a period of tumult. In September 2023, its stock plummeted by nearly 20 percent after the firm ousted its longtime CEO, Chris Rondeau. A former manager had sued the company in 2018, alleging leaders created a “debaucherous” work environment. The lawsuit was reportedly settled in 2021. Planet Fitness declined to comment on Rondeau outside of a press release.
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The company’s stock reached an all-time high of $109.07 on January 30, a couple of weeks after announcing its 2024 financials: a 5 percent sales increase overall, and the opening of 150 new clubs nationwide. The stock had gained more than 125 percent since early October 2023. (Shares are up some 38 percent since early November 2024, when the company announced its third-quarter metrics.)
The end of Rondeau’s 10 years as CEO marked a series of changes for the company. Colleen Keating, the new CEO, took over on June 10 last year. Around that time, Planet Fitness raised its classic membership rate, from $10 to $15 per month, for the first time in 26 years. The company also added two new members to its leadership team — a chief development officer and a chief marketing officer — which a spokesperson said will help further build relationships with franchisees.
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Kamryn Corraro performed chest presses at the new Planet Fitness location in Allston. Pat Greenhouse/Globe Staff
Previously, Keating served as CEO of rental home company FirstKey Homes and a chief operating officer for InterContinental Hotels Group. Since taking on the top spot at Planet Fitness, industry analysts say, the decisions she has made to refine the company’s focus on strength training and overall fitness have driven recent growth.
Investment banking company TD Cowen named Planet Fitness its “Best Idea” stock for 2025 as analysts are confident in the direction of the company. “We think that [Keating] has done a really nice job over the past six to seven months working with intensity and really leaning into initiatives that seem to be getting a lot of buy-in from the franchisee base,” said Max Rakhlenko, an analyst and managing director of hardlines retail and wellness at TD Cowen.
Rakhlenko said he believes the membership price increase will benefit the company’s franchisees and drive further increases in sales. The focus on strength training and overall wellness in Planet Fitness’s reimagined marketing strategy also bolstered the company’s outlook for the year, he said.
The company is benefitting from an industry-wide boom as gym membership has rebounded since the pandemic forced widespread closures. In fact, more people in the US belong to fitness clubs now than they did pre-pandemic, according to a report by fitness technology company ABC Fitness.
The popularity of gym membership has been driven by Generation Z and a rise in interest in group classes post-COVID. Industry experts say people are looking for fitness offerings that augment their lifestyles, not only their physical health. Community-focused fitness options like Pilates and pickleball are thriving, more gym-goers are utilizing personal trainers, and people’s approaches to wellness have become more holistic, said ABC Fitness CEO Bill Davis.
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At the new Allston location, employees work to create an environment where gym-goers feel welcome, whether they’re learning how to use the machines for the first time or are refining a yearslong regimen, said Carlos Torres, director of operations for Planet Fitness franchise group Supreme Fitness, which owns the new location.
Carlos Torres is the director of operations for Planet Fitness franchise group Supreme Fitness, which owns the new Planet Fitness location in Allston. Pat Greenhouse/Globe Staff
“We want our members to feel like they’re part of something more,” said Torres, who owns seven Planet Fitness locations. “We want to give you the most attention from the minute you walk in all the way until you walk out, and that you leave happy.”
Planet Fitness’s efforts to create this environment sets it apart from other “high volume, low price” competitors, said Rakhlenko, the analyst.
The company “plays in a bigger pool of those individuals that don’t have a gym membership,” said Rakhlenko, and “is trying to go after that first-time gym-goer.”
Planet Fitness’s low membership price has long been a key selling point. Even with the recent $5 increase, the rate remains below those of other full-service gyms. LA Fitness charges $39.99 per month. Crunch Fitness’s base plan to access one location costs $19.99 a month.
Michael Metcalf, on his first visit to the new Allston location, said he switched from Commonwealth Sports Club for the lower price and was excited to use the cardio machines.
“I was excited when I heard it was opening,” he said, “because there aren’t many gyms like this in Allston.”
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The strength area of a new Planet Fitness location in Allston. Pat Greenhouse/Globe Staff
Maren Halpin can be reached at maren.halpin@globe.com.