Crunch Fitness, New York, has appointed Dan Gallagher, a former Town Sports International executive, as its new chief financial officer, the company announced.
Prior to joining Crunch Fitness, Gallagher worked for Town Sports International Holdings, New York, from 1999 to 2015. He served as vice president of finance in 2006 when Town Sports went through its initial public offering. Gallagher moved into the CFO role at Town Sports in 2008 and then served as president and COO starting in January 2014, adding the title of CEO in February 2015.
After he left Town Sports in June 2015, he served as CFO of KB US Holdings, which owns Kings Supermarkets and Balducci’s Food Lovers Markets. During his time there, Gallagher provided leadership to support the company’s growth plan under new ownership and was a member of the executive committee, developing growth strategies while improving the company’s financial position, according to a media release from Crunch.
“Dan’s knowledge and background in the health and fitness industry will help lead the company through this important stage in our evolution and will continue to build a strong foundation that will move the business forward,” Keith Worts, CEO of Crunch, said in the media release. “His leadership and proven success in finance and accounting makes him the perfect executive to take Crunch to the next level in 2018 and beyond.”
Ben Midgley, CEO of Crunch Franchising, said that Gallagher's arrival comes at an important time for Crunch.
"As the fastest growing and No. 1 brand in the HVLP category, his experience and expertise are a welcomed addition to our team as we look to grow even faster over the coming years,” Midgley said. Crunch celebrated hitting the one million member mark in September 2017.
Gallagher noted in the release that it was an exciting time at Crunch as the company pursues "ambitious objectives."
“My experience gives me the unique ability to help grow the company from multiple perspectives to deliver results,” Gallagher said. “Crunch is a special brand with something unique and compelling to offer, and I look forward to working with the team.”
Crunch serves more than 1.2 million members at more 245 gyms worldwide in 25 states, Puerto Rico and four countries. It ranked as No. 10 on Club Industry's 2017 Top 100 Clubs list with revenue in 2016 of $170 million, a six percent increase from 2015. The reported revenue was for corporate-owned facilities and franchisee fees, but it did not include revenue from individual franchisee locations.
Town Sports ranked No. 6 on the 2017 Top 100 Clubs list with $396.92 million in 2016 revenue, the fifth year that the company's revenue has declined.