📘 Question
FlexFit Gyms is a mid-sized U.S. fitness chain with ~200 locations and a recurring revenue model. Their three main plans — Basic, Premium, and Family — account for the bulk of monthly revenue.
The CFO has flagged a ~15% decline in monthly recurring revenue in the most recent month, despite no changes in pricing, hours, or reported store downtime. Marketing spend remained flat, and no major new competitors launched nearby.
The CEO has asked McKinsey to help diagnose the issue and chart a path to recovery. Before diving into the numbers, she wants your perspective on how the team should approach the problem.
📊 Case Exhibit
Your answer:
FlexFit Gyms is a mid-sized U.S. fitness chain with ~200 locations and a recurring revenue model. Their three main plans — Basic, Premium, and Family — account for the bulk of monthly revenue.
The CFO has flagged a ~15% decline in monthly recurring revenue in the most recent month, despite no changes in pricing, hours, or reported store downtime. Marketing spend remained flat, and no major new competitors launched nearby.
The CEO has asked McKinsey to help diagnose the issue and chart a path to recovery. Before diving into the numbers, she wants your perspective on how the team should approach the problem.
📊 Case Exhibit