Getting Fitness First in shape

The Life: Fitness First chief executive Praveen Bhatnagar talks about getting the company in tiptop condition after coming aboard last year.

Praveen Bhatnagar, the chief executive of Fitness First. Jeffrey E Biteng / The National

Praveen Bhatnagar is the chief executive of Fitness First, whose Middle East operations were acquired last year by the Landmark Group, a retail and hospitality conglomerate based in Dubai. He talks about working out the fine balance of nurturing parts of a newly acquired business while cutting others.

You've been with Landmark Group for 16 years, most recently as chief operating officer for its Qatar operations. What was the most challenging part of that job?

When I took up that position in Qatar our workforce was quite small. It was about 200-odd people, and when I left it was more than 1,000 people. The biggest challenge was training people, getting them ready and to live up to expected standards within the group and retail industry.

You've said that developing manpower will continue being your greatest challenge as Fitness First expands from 18 locations to nearly 100 throughout the Middle East and North Africa. Why will this be so difficult?

Because in this industry availability of people is a big issue. This industry is quite small, in terms of people who are trained and willing to do a trainer's job, so hiring the right people and retaining them is going to be the biggest challenge for us in expanding. Currently we have close to about 800 people. Once we reach a figure of 100 [clubs] we will be having close to 3,500 to 4,000 employees.

Where will you look for talent?

We have to go all over the globe because you cannot focus on just a single country or few countries. Our HR department has got a big task on its hands.

Long-term challenges aside, what are some changes you have already made?

We had to upgrade most of our clubs. They were short on the manpower, and the quality of equipment - that needed to be replaced. Also, the upkeep and service were quite below the Fitness First standards, as well as the Landmark Group standards. The immediate focus for us was basically to attend to these shortcomings within the business … but we've covered significant areas, and in the next couple of months we should be complete with it.

Many executives decide - or are asked - to cut costs after a new acquisition. Are there any areas you've had to cut?

Yes, we have, but that was not our immediate priority. Our immediate priority was to look at the customer satisfaction. But, yeah, as we go along there will be areas we can look at saving costs. I would not say "cut costs" but "saving costs".

Can you give an example of what you would make more efficient?

Basically looking at the size of the club. In the city of Dubai, we have 12 clubs. When we grow to, say, 25 we cannot maintain the size of the clubs, so they have to get smaller and smaller and become neighbourhood clubs. That would result in improving the operational efficiencies through paying lower rent, having fewer staff and lesser investment in the equipment.

Would I ever see you working out at Fitness First?

Absolutely. I go three times a week now.