Amid a "higher-for-longer" interest rate environment, in which consumers are dealing with financial pressures, Barry's CEO Joey Gonzalez joins Wealth! to shed light on the state of the consumer and its impact on Barry's business operations.

"If inflation is impacting our clients," Gonzalez says, "they're definitely choosing to prioritize fitness and wellness." Gonzalez notes Barry's witnessed its highest attendance ever in April, defying economic headwinds among consumers.

The CEO stresses the company's commitment to operational efficiency. Gonzalez highlights the fitness company's proactive approach, seeking out innovative ways to streamline processes and optimize value both in and out of the studio.

Gonzalez also discusses the company's expansion plans, new product offerings, and promotions to ensure value for consumers.

For more expert insight and the latest market action, click here to watch this full episode of Wealth!

This post was written by Angel Smith

Video Transcript

Let's turn now to the economy and how Americans are spending money.High inflation has had a big impact.And in fact, on consumers over the last year or two, a recent Wells Fargo survey found two thirds of Americans say they've cut back on spending with a third saying that they've dipped into savings or investments.But our next guest who comes from the fitness world and part of our health is Wealth Week here says, although their clientele may have had to cut back in some areas of spending, health and wellness has remained a priority here with more.We've got the CEO of Barry's Global Joey, Gonzalez.Joey.Always a pleasure to grab some time.Thanks for hopping on with us.You too.You too good to see you.Thanks for having me.Absolutely.Let's dive into this.I mean, what, what are you seeing in the consumer landscape and all of those that are coming into the red room right now and the fitness experiences where they're spending further or where they're making tough decisions to, to pull back.Uh Well, you know, all we know is what's happening in the red room, right?And so all I can say is that if inflation is impacting our clients, they're definitely choosing to prioritize fitness and wellness.As we've just continued to see record results across the globe.This past April was actually the highest attended month in Barry's history.Wow.Ok. All right.I know, I know you've got a few members from our control room as well that have made their voyages into the red room.You know, as we think about the pricing mechanism too.I mean, this is a business that involves coaches who have to offset the impacts of inflation with uh the ability to make sure that they're making more.You've got a business that you're running and uh you know, a different location basis and different geographies and regions around the world.What type of input costs ha have you seen kind of moderate?And how is the business going about really making sure that you're giving the same experience and not sacrificing on service while at the same time knowing that there are some fluctuations in the prices that really need to be considered here.Yeah, I'd say from just a general overall company standpoint as costs have increased.Uh we just had to find ways to operate more efficiently both through value engineering in our actual build outs because we've been opening a lot of studios uh and creating more operational efficiencies within our actual studio expense model.Is there a smart spending way that, that people who are, are booking any of their boutique fitness classes or instructed fitness classes can make sure that they're kind of staying within their budget, but at the same time getting the, the health, the wellness that gives us that work life balance.Yeah, I, I mean, I think we reward frequency in our pricing model obviously.So, um we've been seeing some uptick in memberships for the more value driven consumers who really want to get the most bang for their buck.Uh So I think making a commitment to, you know, fewer brands or choosing a brand where you feel like you could get the best workout is gonna end up paying off.What's the next big investment that you foresee Barry's making into its fitness experience?Uh We have a combination, we're continuing to expand into new markets and new market types as well and as well as in filling our current markets.We open Santa Monica and Studio City uh in the upcoming 30 days.But we're also really exciting about scaling our new product called Ride Lift, which is a low impact alternative to what we do with the treadmills.We've replaced the treadmill with cycling.So you're weightlifting and your cycling and you're getting an amazing hit workout.Uh We're in L A, we're in Chelsea, New York City, uh and planning to scale that as well as another concept.We have called lift, which is just 50 minutes of pure strength training.And we have 15 of those studios Global Globally.I'm wondering, you know, even as we were talking about where people are prioritizing their spend for fitness, how you're kind of tracking across different income levels?I mean, we, we talk about Chipotle so much for instance and that if there is a trade down, even among the kind of high end consumer that Chipotle will still capture that and, and even when there's a trade up from the low income consumer, Chipotle will still capture that.What does that look like for, for Barry on the fitness side if you will?Yeah, I think that's interesting.Um I think the one example that comes to mind, you know, Barry has been around 26 years, so we've been through a recession and I do remember just anecdotally uh in 2008 and nine.we had some people trading down from personal training, right?Because to use a personal trainer at a gym costs at least four times what a various classes.So that's one example I think of, of movement we see in during those times, Glo Barry's global ceo Joey Gonzalez.Joey.Great to see you as always out.We gotta, we gotta catch back up in person.I gotta make it down to Florida.I mean, I'm just, I'm just ready for some consistent 80 weather days here.I know it's a probably we love to have you.All right, good to see you Joey.Thanks.So much take care.Thank you.