Rapidly Growing Australian ‘Sensory Fitness’ Chain Set To Open 40 Sites Across NZ

One of Australia’s fastest-growing fitness chains has entered New Zealand with a multimillion-dollar expansion programme that will see it open 40 new sites before 2030.

Fitness franchise S30 Studio has opened its first location in Tauranga and will open a second site in Mt Eden in November.

The local expansion is expected to create 200 new jobs over the next five years in nine cities between Auckland and Queenstown.

According to latest research, the number of gyms in New Zealand has grown by 69% to 1,151 over the past decade however gym membership penetration rates in NZ sit around 13%, around half of those in the U.S. or parts of Europe, where they can range between 20-25%.[1][2]

Described as an ‘immersive sensory training experience that is a cross between a gym and a nightclub’, S30 blends a hybrid format of resistance and conditioning training with 24/7 gym access - set in a low-light and energetic music environment.

In addition to the gym facilities, members can access recovery options like saunas, ice baths, and compression boots.

The company has also developed a technology platform that will allow members to transfer between studios and access workouts remotely.

In addition to its New Zealand launch, the company plans to open over 175 locations across Australia in the next five years. They are also set to expand to the US, Europe, and Southeast Asia - having signed a deal to enter the Singaporean market last year.

Luke Faulkner, the New Zealand-born founder and CEO of S30 Studio, says the NZ fitness market is underserved by global standards and has considerable room to accommodate a new entrant.

He says New Zealand’s gym market, valued around $567 million, has a per capita engagement level similar to Australia’s but is significantly less than in North America.[3]

“The gym and fitness industry in New Zealand has been expanding at a steady pace, though it remains smaller than those in countries with large populations and strong fitness cultures like the U.S., Australia, and the United Kingdom.

“Based on current figures we believe there is potential for this local market to grow to a billion dollar industry.

“Gym membership penetration rates in New Zealand are low in comparison to many markets around the world. NZ’s smaller market size and distinct fitness preferences contribute to this difference.

“However, there is strong growth potential in New Zealand’s fitness industry, particularly in high-tech and boutique fitness solutions, and the adoption of hybrid digital and in-person memberships. This trend reflects broader Asia-Pacific developments, where digital fitness access is expanding rapidly and growing overall participation rates.

“We see a clear gap in this market for an innovative player with the right model, and our approach has led to network-wide revenue growth of over 280% in the past two years, with our footprint in Australia nearly tripling.

“With more than 12,500 members in Australia joining since our launch five years ago, we’re now setting our sights on New Zealand, aiming to reach 10,000 members here over the next five years,” he says.

Faulkner says their New Zealand expansion has been funded by a multimillion-dollar capital investment and they have appointed a master franchisor for this market, in line with their Australian operating model.

“While virtual training programmes have risen significantly in recent years, we place greater emphasis on an in-person, coach-led approach - a typical S30 class has 36 participants and up to three trainers.

“We are currently talking to potential franchisees around the country who are passionate about the fitness industry and we’re confident that our unique training methodology, focus on community, and commitment to providing a high-quality fitness experience will resonate with New Zealanders,” he says.

Darryl McLaughlin, S30 master franchisor for NZ, who opened the first S30 site in Papamoa, says the link between music, low lighting and exercise outcomes is well established - helping to drive member retention.

He says the strategic use of lighting can improve workout performance and allow you to focus intently on the overall experience.

“Research shows that low lighting levels in a gym environment tend to remove the element of comparison and competition and encourage an inward focus rather than looking externally at what you look like or what everyone else is doing.

“When we combine this with high-intensity music and the close supervision of a structured exercise programme the results tend to follow,” he says.

[1] IBISWorld - industry market research, reports, and statistics. (n.d.). https://www.ibisworld.com/nz/number-of-businesses/gyms-fitness-centres/658/

[2] Deloitte IHRSA Asia-Pacific Health Club Report

[3] IBISWorld - industry market research, reports, and statistics. (n.d.). https://www.ibisworld.com/nz/number-of-businesses/gyms-fitness-centres/658/

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