Why Most Yoga Studios Stay Stuck at 1–9% Profit (And What the Data Says to Do Instead) with Julian Barnes

 

Why Most Yoga Studios Stay Stuck at 1–9% Profit (And What the Data Says to Do Instead)

Here’s the thing.

Most studio owners are working harder than ever — and still barely paying themselves.

They’re teaching more classes.
Covering more subs.
Spending more time “marketing.”

And yet… when December 31 rolls around, they either don’t know their profit margin — or they know it and wish they didn’t.

This isn’t because you’re bad at business.
You weren’t taught how to run one.

And that’s exactly why this episode matters.

In this conversation, I sit down with Julian Barnes, CEO of the BFS Network, to unpack what actual industry data reveals about profitability in yoga, Pilates, and boutique fitness studios — and what studio owners need to stop guessing about immediately.

The Data Most Studio Owners Are Avoiding

Let’s start with the number no one wants to look at.

According to the most recent BFS State of the Industry data:

• Only 57% of studios are profitable
  
  

• Of those profitable studios:
  
  

• Pilates studios are far more likely to exceed 20% profit
  
  

• Yoga studios most often land in the 1–9% range
  
  

That’s after paying the owner a salary.

Read that again.

This isn’t about revenue. It’s about structure.

Most studio owners are driving blind — making pricing, staffing, and marketing decisions without benchmarks.

And when you don’t know what “good” looks like, everything feels personal.

Why Pilates Studios Are More Profitable (It’s Not What You Think)

This is where things get uncomfortable — and useful.

Pilates studios aren’t more profitable because Pilates instructors “care more about money.”

They’re more profitable because of business model realities:

• Smaller footprint = lower rent
  
  

• Fewer instructors = lower payroll
  
  

• Limited equipment = built-in scarcity
  
  

• Scarcity supports premium pricing
  
  

Meanwhile, many yoga studios:

• Lease large spaces
  
  

• Heat and humidify rooms
  
  

• Staff front desks
  
  

• Try to fill 40–50 spots per class
  
  

That’s not a moral issue.
It’s a math issue.

The two biggest expenses in any brick-and-mortar business are rent and payroll.
Pilates models naturally reduce both.

That doesn’t mean yoga is doomed.
It means yoga studios must be more intentional.

The Most Dangerous Belief Studio Owners Hold

Julian said something in this episode that I wish every studio owner would write on a sticky note:

“Every studio owner thinks their business is different. It’s not.”

Your town isn’t the problem.
Your modality isn’t the problem.
Your market isn’t the problem.

Believing you’re the exception is what keeps you stuck.

When you believe your business is “special,” you stop using proven frameworks — and start guessing.

Pricing Isn’t the Problem — Positioning Is

One of the biggest takeaways from the BFS report is this:

The studios with the highest revenue and profit margins charge the most.

Captain obvious? Maybe.

But most yoga studio owners are pricing based on:

• What feels comfortable
  
  

• What the studio down the street charges
  
  

• Fear of being “too expensive”
  
  

Instead, Julian outlines a simple pricing matrix exercise:

• Map competitors by price (premium vs budget)
  
  

• Map them by distance (near vs far)
  
  

• Decide where you want to sit intentionally
  
  

There is no universal “right” price.

But there is a wrong strategy: copying underperforming studios.

The Most Encouraging Math You’ll Hear All Year

This might be my favorite part of the episode.

If you’re a profitable studio doing ~$500k/year:

• 10% profit = $50,000
  
  

• 20% profit = $100,000
  
  

To increase profit by $50,000 in one year, you need:

Two net new members per month.
That’s it.

Not a viral reel.
Not a fancy agency.
Not burning yourself out.

Two.

This is why clarity beats hustle every time.

Intro Offers Aren’t Broken — Your Process Is

Julian confirms what I teach my clients constantly:

Any intro offer can work.

Two weeks unlimited.
Three classes.
Half off the first month.

The offer isn’t the issue.

The process is.

Speed to lead.
Follow-up systems.
Front desk experience.
Post-class communication.

If someone signs up at 2am and doesn’t hear from you until Tuesday… the sale is already lost.

The FER Framework Every Studio Owner Needs

Julian breaks it down simply:

• F — Find leads (consistently)
  
  

• E — Enroll them (with clear systems)
  
  

• R — Retain them (with experience)
  
  

This is how profitable studios think.

Not “what should my intro offer be?”
But “what system turns interest into membership?”

This Is Fixable — If You’re Willing to Lead

If you take nothing else from this episode, take this:

Profit is not the enemy of integrity.
It’s what allows you to stay open, pay your team, and lead well.

And no — you don’t need to become a Pilates studio overnight.

But you do need to stop running your yoga studio like a passion project and start running it like a business.

🎧 Listen to the Full Episode

In this episode, we cover:

• Real profitability benchmarks
  
  

• Why yoga studios struggle financially
  
  

• How pricing actually works
  
  

• The systems that matter most
  
  

• What to focus on in 2025 and beyond
  
  

👉 Listen to the full episode of the Studio CEO Podcast here

🚀 Ready to Apply This?

If this episode hit close to home, you have two next steps:

• Studio CEO Program — for studio owners building sustainable, profitable businesses
  
  

• Grow Mastermind — for established owners scaling revenue, leadership, and systems
  
  

You don’t need more effort.
You need better structure.

Why Most Yoga Studios Stay Stuck at 1–9% Profit (And What the Data Says to Do Instead)

Here’s the thing.

Most studio owners are working harder than ever — and still barely paying themselves.

They’re teaching more classes.
Covering more subs.
Spending more time “marketing.”

And yet… when December 31 rolls around, they either don’t know their profit margin — or they know it and wish they didn’t.

This isn’t because you’re bad at business.
You weren’t taught how to run one.

And that’s exactly why this episode matters.

In this conversation, I sit down with Julian Barnes, CEO of the BFS Network, to unpack what actual industry data reveals about profitability in yoga, Pilates, and boutique fitness studios — and what studio owners need to stop guessing about immediately.

The Data Most Studio Owners Are Avoiding

Let’s start with the number no one wants to look at.

According to the most recent BFS State of the Industry data:

• Only 57% of studios are profitable
  
  

• Of those profitable studios:
  
  

• Pilates studios are far more likely to exceed 20% profit
  
  

• Yoga studios most often land in the 1–9% range
  
  

That’s after paying the owner a salary.

Read that again.

This isn’t about revenue. It’s about structure.

Most studio owners are driving blind — making pricing, staffing, and marketing decisions without benchmarks.

And when you don’t know what “good” looks like, everything feels personal.

Why Pilates Studios Are More Profitable (It’s Not What You Think)

This is where things get uncomfortable — and useful.

Pilates studios aren’t more profitable because Pilates instructors “care more about money.”

They’re more profitable because of business model realities:

• Smaller footprint = lower rent
  
  

• Fewer instructors = lower payroll
  
  

• Limited equipment = built-in scarcity
  
  

• Scarcity supports premium pricing
  
  

Meanwhile, many yoga studios:

• Lease large spaces
  
  

• Heat and humidify rooms
  
  

• Staff front desks
  
  

• Try to fill 40–50 spots per class
  
  

That’s not a moral issue.
It’s a math issue.

The two biggest expenses in any brick-and-mortar business are rent and payroll.
Pilates models naturally reduce both.

That doesn’t mean yoga is doomed.
It means yoga studios must be more intentional.

The Most Dangerous Belief Studio Owners Hold

Julian said something in this episode that I wish every studio owner would write on a sticky note:

“Every studio owner thinks their business is different. It’s not.”

Your town isn’t the problem.
Your modality isn’t the problem.
Your market isn’t the problem.

Believing you’re the exception is what keeps you stuck.

When you believe your business is “special,” you stop using proven frameworks — and start guessing.

Pricing Isn’t the Problem — Positioning Is

One of the biggest takeaways from the BFS report is this:

The studios with the highest revenue and profit margins charge the most.

Captain obvious? Maybe.

But most yoga studio owners are pricing based on:

• What feels comfortable
  
  

• What the studio down the street charges
  
  

• Fear of being “too expensive”
  
  

Instead, Julian outlines a simple pricing matrix exercise:

• Map competitors by price (premium vs budget)
  
  

• Map them by distance (near vs far)
  
  

• Decide where you want to sit intentionally
  
  

There is no universal “right” price.

But there is a wrong strategy: copying underperforming studios.

The Most Encouraging Math You’ll Hear All Year

This might be my favorite part of the episode.

If you’re a profitable studio doing ~$500k/year:

• 10% profit = $50,000
  
  

• 20% profit = $100,000
  
  

To increase profit by $50,000 in one year, you need:

Two net new members per month.
That’s it.

Not a viral reel.
Not a fancy agency.
Not burning yourself out.

Two.

This is why clarity beats hustle every time.

Intro Offers Aren’t Broken — Your Process Is

Julian confirms what I teach my clients constantly:

Any intro offer can work.

Two weeks unlimited.
Three classes.
Half off the first month.

The offer isn’t the issue.

The process is.

Speed to lead.
Follow-up systems.
Front desk experience.
Post-class communication.

If someone signs up at 2am and doesn’t hear from you until Tuesday… the sale is already lost.

The FER Framework Every Studio Owner Needs

Julian breaks it down simply:

• F — Find leads (consistently)
  
  

• E — Enroll them (with clear systems)
  
  

• R — Retain them (with experience)
  
  

This is how profitable studios think.

Not “what should my intro offer be?”
But “what system turns interest into membership?”

This Is Fixable — If You’re Willing to Lead

If you take nothing else from this episode, take this:

Profit is not the enemy of integrity.
It’s what allows you to stay open, pay your team, and lead well.

And no — you don’t need to become a Pilates studio overnight.

But you do need to stop running your yoga studio like a passion project and start running it like a business.

🎧 Listen to the Full Episode

In this episode, we cover:

• Real profitability benchmarks
  
  

• Why yoga studios struggle financially
  
  

• How pricing actually works
  
  

• The systems that matter most
  
  

• What to focus on in 2025 and beyond
  
  

👉 Listen to the full episode of the Studio CEO Podcast here

🚀 Ready to Apply This?

If this episode hit close to home, you have two next steps:

• Studio CEO Program — for studio owners building sustainable, profitable businesses
  
  

• Grow Mastermind — for established owners scaling revenue, leadership, and systems
  
  

You don’t need more effort.
You need better structure.

Why Most Yoga Studios Stay Stuck at 1–9% Profit (And What the Data Says to Do Instead)

Here’s the thing.

Most studio owners are working harder than ever — and still barely paying themselves.

They’re teaching more classes.
Covering more subs.
Spending more time “marketing.”

And yet… when December 31 rolls around, they either don’t know their profit margin — or they know it and wish they didn’t.

This isn’t because you’re bad at business.
You weren’t taught how to run one.

And that’s exactly why this episode matters.

In this conversation, I sit down with Julian Barnes, CEO of the BFS Network, to unpack what actual industry data reveals about profitability in yoga, Pilates, and boutique fitness studios — and what studio owners need to stop guessing about immediately.

The Data Most Studio Owners Are Avoiding

Let’s start with the number no one wants to look at.

According to the most recent BFS State of the Industry data:

• Only 57% of studios are profitable
  
  

• Of those profitable studios:
  
  

• Pilates studios are far more likely to exceed 20% profit
  
  

• Yoga studios most often land in the 1–9% range
  
  

That’s after paying the owner a salary.

Read that again.

This isn’t about revenue. It’s about structure.

Most studio owners are driving blind — making pricing, staffing, and marketing decisions without benchmarks.

And when you don’t know what “good” looks like, everything feels personal.

Why Pilates Studios Are More Profitable (It’s Not What You Think)

This is where things get uncomfortable — and useful.

Pilates studios aren’t more profitable because Pilates instructors “care more about money.”

They’re more profitable because of business model realities:

• Smaller footprint = lower rent
  
  

• Fewer instructors = lower payroll
  
  

• Limited equipment = built-in scarcity
  
  

• Scarcity supports premium pricing
  
  

Meanwhile, many yoga studios:

• Lease large spaces
  
  

• Heat and humidify rooms
  
  

• Staff front desks
  
  

• Try to fill 40–50 spots per class
  
  

That’s not a moral issue.
It’s a math issue.

The two biggest expenses in any brick-and-mortar business are rent and payroll.
Pilates models naturally reduce both.

That doesn’t mean yoga is doomed.
It means yoga studios must be more intentional.

The Most Dangerous Belief Studio Owners Hold

Julian said something in this episode that I wish every studio owner would write on a sticky note:

“Every studio owner thinks their business is different. It’s not.”

Your town isn’t the problem.
Your modality isn’t the problem.
Your market isn’t the problem.

Believing you’re the exception is what keeps you stuck.

When you believe your business is “special,” you stop using proven frameworks — and start guessing.

Pricing Isn’t the Problem — Positioning Is

One of the biggest takeaways from the BFS report is this:

The studios with the highest revenue and profit margins charge the most.

Captain obvious? Maybe.

But most yoga studio owners are pricing based on:

• What feels comfortable
  
  

• What the studio down the street charges
  
  

• Fear of being “too expensive”
  
  

Instead, Julian outlines a simple pricing matrix exercise:

• Map competitors by price (premium vs budget)
  
  

• Map them by distance (near vs far)
  
  

• Decide where you want to sit intentionally
  
  

There is no universal “right” price.

But there is a wrong strategy: copying underperforming studios.

The Most Encouraging Math You’ll Hear All Year

This might be my favorite part of the episode.

If you’re a profitable studio doing ~$500k/year:

• 10% profit = $50,000
  
  

• 20% profit = $100,000
  
  

To increase profit by $50,000 in one year, you need:

Two net new members per month.
That’s it.

Not a viral reel.
Not a fancy agency.
Not burning yourself out.

Two.

This is why clarity beats hustle every time.

Intro Offers Aren’t Broken — Your Process Is

Julian confirms what I teach my clients constantly:

Any intro offer can work.

Two weeks unlimited.
Three classes.
Half off the first month.

The offer isn’t the issue.

The process is.

Speed to lead.
Follow-up systems.
Front desk experience.
Post-class communication.

If someone signs up at 2am and doesn’t hear from you until Tuesday… the sale is already lost.

The FER Framework Every Studio Owner Needs

Julian breaks it down simply:

• F — Find leads (consistently)
  
  

• E — Enroll them (with clear systems)
  
  

• R — Retain them (with experience)
  
  

This is how profitable studios think.

Not “what should my intro offer be?”
But “what system turns interest into membership?”

This Is Fixable — If You’re Willing to Lead

If you take nothing else from this episode, take this:

Profit is not the enemy of integrity.
It’s what allows you to stay open, pay your team, and lead well.

And no — you don’t need to become a Pilates studio overnight.

But you do need to stop running your yoga studio like a passion project and start running it like a business.

🎧 Listen to the Full Episode

In this episode, we cover:

• Real profitability benchmarks
  
  

• Why yoga studios struggle financially
  
  

• How pricing actually works
  
  

• The systems that matter most
  
  

• What to focus on in 2025 and beyond
  
  

👉 Listen to the full episode of the Studio CEO Podcast here

🚀 Ready to Apply This?

If this episode hit close to home, you have two next steps:

• Studio CEO Program — for studio owners building sustainable, profitable businesses
  
  

• Grow Mastermind — for established owners scaling revenue, leadership, and systems
  
  

You don’t need more effort.
You need better structure.