According to the 2024 BFS State of the Industry Report, studios with high-profit margins (20%+) are more likely to employ a manager.

The data shows:

• 67% of high-profit studios employ a manager, compared to 33% of low-profit studios.
• 26% of high-profit studios pay managers $75K+, compared to 15% in the lower-profit bracket.

High-profit studios are far more likely to have strong operational support in place.

A Manager is “The Most Important Role”

The data shows that stronger operational support is a defining characteristic of high-profit studios. To understand why managers play such a meaningful role, we looked to operators and leaders who work directly with studios navigating growth and daily operations.

In a recent Fireside Chat, Kathleen Ferguson, Founder & CEO of Coach 360, emphasized the importance of the role:

   “One of the things that we've talked about is that the fitness manager in a facility is the most important role.”

She also explained what this responsibility requires:

   “Making sure that that fitness manager is not necessarily training, but is actually able to delegate the programs and packages and really oversee the overall training program… This is a very, very important role.”

Adding to this, Jennifer Maanavi, Co-Founder & CEO of Physique 57, highlighted how onsite presence amplifies operational stability:

   “If you have someone in the studio 30–35 hours a week, it just magnifies the leadership and the owner’s presence. The manager will add benefits of marketing, operations, facilities and the owner can work on the business rather than in the business.”

And Anastasiya Goers, CEO & Founder of Pilates Bridge, pointed to the impact on day-to-day client experience:

   “There’s always a person there to have that one-on-one concierge experience rather than, ‘Oh, go to my website and book a class."

The Leadership Qualities That Drive Revenue

Studio owners often ask what separates a strong manager from someone who simply handles tasks. Kathleen Ferguson highlighted the personal qualities that determine whether a manager can lead effectively and support revenue-driving processes:

   “There are a lot of intangible qualities required for great leadership: emotional intelligence, natural leadership skills, the ability to connect with people on an emotional level, and the capacity to truly listen and understand. These are all critical traits.”

   “Many of those qualities can’t really be taught. You either have them or you don’t. Leadership skills should be at the top of the list when hiring a manager.”

She also noted the importance of industry experience:

   “It’s also important that the person has a fitness background…They must be able to guide trainers in delivering great sessions but also in selling packages.”

Dedicated Management Time is the Real Lever

Even with strong staff in place, studios still need someone responsible for consistently managing the business. That responsibility may fall to a manager, operations lead, or even the owner, as long as dedicated time is allocated to it.

Seran Glanfield, Founder of Spring Three, underscored this point clearly:

   “You don’t have to hire a studio manager to be successful. What truly matters is having dedicated business management time, that is the critical piece.”

The Common Thread: Dedicated Managers Fuel Revenue

This aligns with what Julian Barnes, CEO and Co-Founder of The BFS Network, sees across conversations with successful studios and SOTI data analysis:

   “One of the biggest takeaways across the board was that the studios that had the highest total revenue and the highest profit margin have a dedicated manage. A dedicated manager has the primary responsibility of either developing or implementing the SOPs that run the studio.”

And he explained why the decision depends on an owner’s goals:

   “If your goal is to make as much money as you possibly can, you may wanna consider investing in your manager. There’s likely to be a ceiling to your top-line revenue if you don’t invest in a manager. But if your goal is lifestyle, you love teaching, and you don't really wanna build a big business, then you can certainly have a profitable business without investing in a manager.”

How Studio Owners Can Apply This Today

• Clearly assess your business goals to determine whether hiring a manager is the right move.
• Prioritize hiring for leadership roles or make sure you have dedicated business management time.
• Ensure a consistent onsite presence for effective operational oversight.  
• Delegate operational responsibilities to a manager (when available).