SoulCycle may face uphill ride on Canada’s fitness scene

TORONTO SoulCycle, the pricey American exercise chain with a cultlike following, will open its first international location in Toronto in March — with plans to expand to multiple locations in the city and across Canada.

But industry insiders say it may face a more challenging ride north of the border, where some boutique spin studios operate at about half the cost of what SoulCycle typically charges its clients.

CEO Melanie Whelan, however, is bullish on the booming fitness company’s chances. “We see tremendous opportunity in the Canadian market,” she said.

New York-based SoulCycle opened its first studio in 2006 and has since grown to 67 locations in the U.S. It is set to expand to at least 250 studios over time.

Andrew Alvarez of market research firm IBISWorld believes Canada’s boutique fitness market is not yet so saturated that it presents insurmountable barriers to entry — but competition is likely. Part of SoulCycle’s future success or failure in Canada will boil down to price, he says, noting that many traditional gyms are struggling with consumer aversion to price.

SoulCycle’s pricing varies, but riders in New York City, for example, pay US$34 for a single class, with no option for monthly unlimited class rates. Cyclists also need clip-in shoes, which SoulCycle rents for $3 or sells for $150 a pair.

By way of comparison, Julie Mitchell, owner of Torq, an indoor cycling studio that opened in Toronto last May, charges her clients $18 per spin class. Still, she believes some Torontonians, especially those who have tried out a SoulCycle class, will shell out the extra bucks for a ride there.

In its preliminary prospectus, SoulCycle notes how the company’s “elevated, meditative fitness experience” has drawn a following that includes numerous celebrities. Comedian Amy Schumer recently shared a photo on Instagram of her at a Chicago location.