Planet Fitness has expanded its board with two new members from outside of the fitness industry, adding 7-Eleven’s chief operating officer and the CEO of Mexican restaurant chain El Pollo Loco as the in-person gym industry struggles amid COVID-19.
The fitness chain this week appointed El Pollo Loco CEO Bernard Acoca and 7-Eleven COO Christopher Tanco to its board, expanding the body to eight members.
“We are pleased to welcome Bernard and Chris as new independent directors to the Planet Fitness board,” company CEO Chris Rondeau said in announcing the move. “They join Planet Fitness at a pivotal time in the business and complement our existing board of director’s skills and expertise.”
The two board members have no experience in fitness, but do have vast experience in businesses that rely on franchising, as Planet Fitness does.
Acoca currently runs El Pollo Loco, which operates some 475 company-owned and franchised locations. He also previously had senior roles at Yum Brands, which owns or franchises KFC, Pizza Hut, Taco Bell and Habit Burger Grille restaurants. Additionally, Acoca had top roles at Starbucks, which doesn’t franchise locations but does license stores’ operations to third parties.
As for Tanco, his current job at 7-Eleven includes overseeing franchise and corporate operations for 15,000 of that chain’s sites. He also previously served as chief franchise officer at Pizza Hut.
Executives Could Help With Any Move Into Restaurants, Retail Or Consumer Goods
Beyond franchise experience, the two executives’ backgrounds could aid Planet Fitness if it chooses to extend its brand into new areas.
For example, Tanco’s 7-Eleven experience would help with any retail endeavors, while both men’s vast background in restaurants would benefit Planet Fitness if the chain wanted to go in that direction.
Acoca also has major experience in consumer packaged goods, including health-oriented ones that fit in with the Planet Fitness image. For instance, the executive’s roles at Starbucks included running the company’s Teavana unit, which sells white tea, green tea and herbal tea as both tea bags and bottled drinks. Prior to joining Starbucks, Acoca also served as chief marketing officer for cosmetics giant L’Oreal.
Planet Fitness said in a statement to PYMNTS that Acoca and Tanco “are global strategic leaders who bring decades of leadership experience to Planet Fitness in key areas, including international and domestic operations, franchising, brand development and leveraging digital to enhance the customer experience.” Board Chair Stephen Spinelli Jr. said in announcing the appointments that the company hopes to tap into the two men’s backgrounds to help with “the many opportunities that lie ahead for our brand.”
“Today’s appointments reflect our ongoing commitment to strengthening our board with a variety of viewpoints and expertise,” Spinelli said. “We look forward to gaining valuable insights and perspectives from Bernard and Chris given their impressive backgrounds, and are confident they are well-suited to join our board and oversee Planet Fitness’ future growth.”
The chain already has a highly eclectic board, with members ranging from Craig Benson — former governor of the company’s home state of New Hampshire — to Enshalla Anderson, who currently serves as Google Cloud’s global head of brand strategy.
In-Person Gyms Are Struggling Due to The Pandemic
Acoca and Tanco’s appointments come at a time when COVID-19 has slammed Planet Fitness and virtually all in-person gyms.
Many Planet Fitness competitors declared Chapter 11 as government mandates initially closed most or all gyms. And while closure orders have since eased and many sites have reopened, social-distancing rules and consumer health concerns continue to hurt lots of gyms.
For example, Planet Fitness’ latest earnings report showed that the company lost $23.7 million during 2020’s first nine months vs. earning $88 million in the same period a year earlier.
However, management remains upbeat.
“Today over 95 percent of our locations are open, with our team members working hard to deliver a safe and healthy in-store environment for our members,” CEO Rondeau said when Planet Fitness released Q3 earnings in November. “While our membership levels have been under some pressure, primarily, we believe, from pent-up cancellations in reopened clubs following the resumption of billing, we saw positive momentum in membership joins and usage rates as a result of kick starting our national marketing efforts in September.”
“Longer-term, we continue to be very confident in Planet Fitness’s growth prospects as the business is well-positioned to capitalize on the increased focus on health and wellness and industry consolidation that we believe will emerge over the next several years,” he said.
Investors seem to agree, and Planet Fitness shares have almost returned to the $88.77 intraday record high they hit last February just before the pandemic swept America. After falling to as low as $23.77 intraday in March, the stock has fought back and closed Thursday (Jan. 21) at $80.94.
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