When Isabel Kurzner walked on stage at RetailSpaces, she put up six images: a smoothie bar, treadmills, a nightclub, a front desk, locker rooms, and a retail store. "I'm building all six of these in 4,000 square feet," said Barry's Senior Director of Real Estate. "We're operating nightclubs, essentially, as premium boutique fitness."
It's a hell of a challenge, and it's working. Barry's is doubling its footprint over the next few years, opening 20 units annually as it scales from 50 to 250 locations. But here's what makes Kurzner's approach different: she's willing to kill sacred cows.
Barry's built its brand on a complete 360 experience: workout, shower with Dyson hair dryers and Kiehl's products, grab a smoothie, shop retail, plug in your laptop and stay awhile. But construction costs have nearly doubled since pre-COVID. Something had to give.
"The red room is something we are not willing to compromise on," Kurzner said. "Having said that, locker rooms are expensive. The plumbing, the tiling. Towel service, we have a whole back-of-house laundry. Fuel bar. Do we need an entire retail store in our lobby?"
The answer: it depends where you are. New York City gets the full experience. Millburn, New Jersey, where customers drove from the city but aren't showering at the gym, gets 3,500 square feet, smaller locker rooms, and the same red room that matters.
"I want to tattoo this to my forehead," Kurzner said, showing a slide: Champagne taste, beer budget. "That's Barry's, and honestly, that is most retailers in today's environment."
Unlike restaurants that can be open all day with more revenue opportunities, fitness concepts are capped. Barry's knows exactly how much money each location will make. Buildout costs have almost doubled from pre-COVID, yet they're still expected to deliver better experiences. The math is getting harder to justify.
Her team's getting creative. Leasing smaller. Questioning individual men's and women's locker rooms—can they do one or two bathrooms instead? Considering Home Depot tile panels that don't require grouting. Pulling owner-furnished items out of GC contracts to order direct.
"Do people really care about shower pans?" she asked. "Nobody knows what a shower pan is unless you're in our industry."
Barry's drives traffic when retail centers need it most: early morning, midday, pre-dinner. They play well with Alo Yoga, Vuori, Lululemon, Puravida. They create buzz.
"Landlords love us, which makes my job easier," Kurzner said. "We are destinational in nature. It's that cultural cache, people taking pictures in front of our selfie wall, videos in the red room, sharing on social media."
Secondary markets: Denver, Charleston, Raleigh, Scottsdale. Suburban lifestyle centers where former New York customers moved after having kids. Urban lifestyle hubs where young people in small apartments want a third place to see and be seen.
The brand that started in West Hollywood in 1988 is proving it's not a fad. It's just getting started—and doing it with smaller footprints, smarter data, and the one non-negotiable that matters: that red room experience.
Watch the full talk below 👇