Episode #570: Lessons from Three Decades in Fitness-Rick Dennis's Approach to Member Experience and Club Operations

Welcome to HALO Talks! In today's episode, host Pete Moore sits down with Rick Dennis, Co-Founder of Bakersfield's Body Xchange and a definite "OG" in the HALO sector. With over 30 years of experience—including a storied career at Family Fitness, 24 Hour Fitness, and launching successful clubs with longtime partner John Ovanessian—Rick shares insights on evolving gym models, member experience, and responding to changing trends.

Rick and Pete chat about how Body Xchange became a place "where everybody trains," adapting to the post-COVID demand for more strength training, flexible facilities, and self-guided workouts. Rick opens up about the importance of listening to your local community, running a tight operation with zero leverage, and the unique advantages of local ownership in a burgeoning market like Bakersfield, CA. 

Pete and Rick also chat about future growth—both for Body Xchange and the Bakersfield area itself—as well as reflections on how today's athletes are changing the game in high school sports and beyond. Listen now for a conversation packed with industry wisdom and practical takeaways for fitness professionals (and enthusiasts!)

On the "power" of staying debt-free Dennis states, "We're definitely not a leveraged company. I think that's something that's really important to understand because as you mentioned, with 24 Hour Fitness, once you get leveraged then there's restrictions to that. We've never had those kinds of restrictions because of the foundation and how we built it."

Key themes discussed

• Evolution of Body Xchange and their club model.
• Shift toward strength training post-COVID.
• Local market dynamics and growth in Bakersfield.
• Importance of a debt-free, reinvestment-focused business.
• Personal touch of local ownership versus national chains.
• Future expansion opportunities in nearby cities.

A Few Key Takeaways: 

1. Evolution of Member Experience & Strength Focus: Rick highlighted how their business model has shifted post-COVID, with a significant pivot towards strength training and member-driven use of space. Recognizing the growing interest in free weights and Olympic lifting, they repurposed areas like group fitness rooms to fit more strength equipment, reflecting the changing fitness trends among younger demographics.

2. Deep Local Roots & Smart Growth: The Bakersfield market is robust and expanding, with affordable housing attracting a young population. Rick emphasized how their deep local knowledge allows them to strategically backfill old locations and position themselves in growth corridors, staying ahead of national chains and big box gyms.

3. Debt-Free, Locally-Owned, and Well-Maintained Clubs: Rick and John built Body Xchange with a focus on being debt-free and maintaining strong local ownership. This approach means they can swiftly reinvest in facilities, ensure equipment is always up to par, and maintain a high-touch presence—reasons why members prefer their facilities over less locally involved national chains.

4. Adaptable Operational Strategy: Body Xchange made a post-COVID decision to pause personal training, acknowledging a shift toward self-guided, technology-driven workouts. Rick notes they still onboard members and provide guidance, and could easily reboot personal training if the right talent emerges.

5. Expansion Opportunities & Local Demographics: Looking ahead, Rick sees potential for 2–3 more locations within Bakersfield and more expansion into comparable communities like Palmdale and Lancaster, as well as midsized cities between Bakersfield and Fresno or west along the Central Coast. He stressed their ability to replicate the Body Xchange DNA by maintaining control over real estate and ensuring each new club matches the model's culture and values.

Resources: 

• Rick Dennis: https://www.linkedin.com/in/rick-dennis-795252175/ 
• Body Xchange: https://www.bxfitness.com 
• Integrity Square: https://www.integritysq.com
• Prospect Wizard: https://www.theprospectwizard.com
• Promotion Vault: http://www.promotionvault.com
• HigherDose: http://www.higherdose.