The encyclopedia · Strategy & Leadership · Operational decision · 2022
SoulCycle lost $350 million in 2020 — two years later it closed a quarter of its studios
The boutique cycling chain's whole model depended on people showing up in person; pandemic closures made a quarter of its U.S. studios unsustainable.
SoulCycle · Equinox · 2022
What happened
SoulCycle built its brand on in-person, instructor-led group cycling classes at premium prices, expanding to 99 U.S. studios under Equinox Group ownership, which had acquired the company from its founders in 2016. The entire business model depended on riders physically showing up to a studio at a scheduled time — there was no equivalent digital product carrying meaningful revenue.
In March 2020, SoulCycle closed all 99 of its studios as COVID-19 lockdowns began. Equinox Group recorded roughly $350 million in losses for 2020 tied to the pandemic shutdown, and the recovery in in-person attendance afterward never returned to pre-pandemic levels.
By 2022, SoulCycle had closed close to 25% of its U.S. locations permanently, and CEO Evelyn Webster left the company as the closures were reported, underscoring how far the brand's post-pandemic recovery had fallen short of its pre-2020 footprint.
Why it happened
- The business model had no substantial digital or at-home revenue stream to fall back on when in-person attendance was cut off entirely by the pandemic.
- $350 million in 2020 losses show the studio-only model could not absorb even a single year of disrupted foot traffic without severe damage.
- Consumer habits around in-person boutique fitness did not fully return after lockdowns eased, leaving many studios permanently over-leased for the demand that remained.
- Leadership turnover at the top, including the CEO's exit as the closures were reported, left the brand without stable direction through its post-pandemic contraction.
The lesson
A fitness brand built entirely on people showing up in person needs a real digital revenue stream before the next disruption, not just a return to normal.
Aftermath
SoulCycle continued operating a reduced studio footprint under Equinox Group ownership after CEO Evelyn Webster's exit, and the company did not return to its pre-pandemic 99-studio U.S. footprint.
Sources
- SoulCycle closing multiple studios across U.S. — AOL/TheStreet
- SoulCycle CEO Evelyn Webster Exits Amid Reported Studio Closures — Athletech News
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