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The Revive Hub

Case Study: The Revive Hub High-Performance Transformation.

The Revive Hub is a boutique high-performance gym in Beirut, owned by renowned basketball player Wael Arakji, offering semi-private and private training, physiotherapy, and following our operational overhaul gym memberships. When we began, management control and financial structure were weak, the reception lacked training, and ancillary revenue was under-optimized. This is how we reshaped the operation and results.

Scope & Co’s Intervention

Seeking to turn the situation around, Johnnie, the CEO of Scope & Co. and business consultant for Wael Arakji, led the intervention. The consulting team performed a thorough audit of the center’s operations and finances, then implemented a series of targeted solutions:

Empowering Department Leadership: Instead of micromanaging staff schedules themselves, the Scope & Co. team introduced a structured scheduling system and trained the Head of Physiotherapy and Head of Personal Training to use it effectively. This empowered departmental leaders to manage their teams’ timetables directly. As a result, trainers and physiotherapists were optimally allocated to client appointments, ensuring no idle staff time and better coverage during peak hours. The new system improved accountability and freed up management to focus on strategic tasks rather than daily scheduling issues.

Financial Restructuring: A significant discovery was that an improper percentage split among the center’s stakeholders was causing an unnecessary drain on profits. Scope & Co. renegotiated the shareholder percentage agreements to align with the company’s actual capital contributions and roles. This correction eliminated about $60,000 in annual excess payouts that had been going to stakeholders under the old arrangement. In parallel, the consultancy revisited staff employment contracts adjusting salary structures and roles where needed. By right-sizing contracts the Revive Hub substantially cut down its operational costs without compromising service quality.

Operational Efficiency & Staffing: The consultants instituted clear Standard Operating Procedures (SOPs) and better role definitions for the team. Receptionists were trained and given more structured responsibilities, improving front-desk efficiency and customer service. Notably, receptionists also took on managing the small in-house refreshment counter. This cross-training ensured that clients could seamlessly check in, book sessions, and purchase beverages or supplements from one point of contact. Simplifying roles and streamlining service flow created a more cohesive experience for clients and a more accountable team culture internally.

Ancillary Revenue Growth: We identified the Hub’s on-site cafe (a protein shake and healthy snack bar at the reception area) as an underutilized revenue stream. By improving product offerings, pricing, and service at this front-desk cafe, the center’s secondary sales increased dramatically. The reception team’s dual role in handling cafe sales not only reduced the need for extra staff but also created a more personal touch with clients. These enhancements led to an additional +$40,000 in annual revenue from the cafe alone. This boost in revenue came without large investments, it was achieved by leveraging existing resources (space and staff) more effectively and responding to client demand for convenient post-workout refreshments.

Results & Impact

Within a short period, Scope & Co.’s changes produced remarkable improvements in the center’s performance:

Improved Team Productivity: With department heads managing schedules using the new system, staff productivity soared. Trainers and physios reported clearer direction and morale improved as their work hours aligned better with client needs. The center could handle more client sessions per week without adding staff, simply by optimizing the schedule and coverage.

Significant Cost Savings: The financial restructuring immediately stopped the profit leakage. By correcting the stakeholder split error, the business saved $60k annually, directly improving its bottom line. Optimizing staff contracts further reduced payroll bloat, trimming expenses while retaining key talent. Overall, the center became much leaner in cost structure, relieving financial pressure and improving cash flow.

Revenue Growth: Ancillary sales growth added $40k to yearly revenue, turning the once-neglected cafe corner into a thriving profit center. This boost, combined with better core service utilization, meant the business was not only saving money but also earning more. The dual-function reception (handling front desk duties and cafe sales) exemplified efficient use of human resources for maximum return.

Expansion in 9 Months: Perhaps the most telling outcome was the business’s ability to expand operations within nine months of Scope & Co.’s engagement. With stronger finances and streamlined operations, Wael Arakji’s center was well-positioned to grow. Indeed, just nine months after the consultancy intervention, the company had amassed enough confidence and capital to invest in expansion – whether that meant opening a new branch or enlarging the existing facility to accommodate more clients and services. This rapid growth was a direct result of the solid foundation laid by the operational and financial reforms.

Enhanced Client Experience: Clients of the center noticed smoother service – appointment bookings became hassle-free and wait times minimized due to better scheduling. The availability of on-site healthy snacks and shakes (efficiently served by the reception team) added to client satisfaction and loyalty. These improvements in customer experience often translate to higher client retention and positive word-of-mouth, further fueling the business’s growth.

Conclusion & Client Feedback

By addressing internal inefficiencies and financial missteps, Scope & Co. transformed Wael Arakji’s physiotherapy and training boutique into a leaner, more profitable enterprise poised for growth. Johnnie and the Scope & Co. team’s hands-on approach in empowering staff, tightening financials, and innovating revenue streams paid off significantly in a short time frame. The collaboration between the consulting team and the center’s leadership turned initial struggles into a success story of cost savings and revenue enhancement, ultimately enabling expansion.

Client Testimonial: Tamara Zantout Arakji, a key stakeholder in the business, praised Scope & Co.’s work and attested to their impact. She noted that the Scope & Co. team was extremely hands-on and professional throughout the process, bringing truly out-of-the-box ideas to the table. The changes implemented not only fixed the pressing issues but also instilled a culture of efficiency and innovation at the center. Tamara highly recommended Scope & Co. for their ability to revitalize operations and deliver tangible results – a sentiment echoed by the impressive turnaround of the business.

PROJECT DETAILS

Date: 2025/02/15
Client: The Revive Hub
Skills: Operation, marketing, financial restructuring

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