CEO Conversations 54: The Inspiring Journey of a Visionary Abroad – John Caraccio, Chairman and CEO of World Fitness Services (2762TT)

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The Inspiring Journey of a Visionary Abroad: How John Caraccio Built Taiwan’s Fitness Empire and Set World Gym on a Global Path

In Taiwan’s competitive fitness industry, “World Gym” (TICKER: World Fitness Services, 2762.TW) is a household name. Behind this prominent brand is John Caraccio, an American entrepreneur who has not only led World Gym to become Taiwan’s leading fitness chain but also took a bold step in 2024 by acquiring World Gym International for $9 million, making Taiwan the new headquarters for this global brand. John’s story is not just about a foreigner building a business in Taiwan. It’s about an entrepreneur driven by a deep sense of purpose and a relentless “never give up” attitude, building a fitness empire from the ground up.

From Humble Beginnings to a Life-Altering Dream

John’s journey began in sunny California, where his fascination with Chinese language and Eastern culture led him to major in Chinese Studies at the University of California. Later, he pursued Sino-U.S. relations at Johns Hopkins University, which deepened his understanding of Asia’s dynamics. Reflecting on his journey, John remarked, “I’ve always believed that every experience, in time, connects to create the foundation for future achievements.” This philosophy became increasingly evident as his career unfolded.

John started his professional journey as a securities analyst at Capital Securities, where he gained valuable insights into Taiwan’s financial markets. However, his role often felt like observing business operations from 30,000 feet above, with little opportunity to engage in the hands-on management he craved. This changed in the 1990s when he joined a consulting firm renowned for helping American companies expand into Asia. It was here that John worked on introducing California Fitness to Hong Kong—a project that achieved tremendous success and gave him a crucial insight: the model that thrived in Hong Kong could have significant potential in Taiwan as well.

At the time, John observed that while his friends in the U.S. almost universally had gym memberships, Taiwan’s fitness landscape was largely underdeveloped, dominated by exclusive and costly hotel clubs. Recognizing a clear gap in the market and understanding Taiwan’s growing awareness of community and health, John seized the opportunity. In 2001, he opened the first World Gym in Taichung, igniting a transformation in Taiwan’s fitness culture.

“Monthly Subscriptions” – A Disruptive Innovation in the Fitness Market

When John launched World Gym in Taiwan, he didn’t just import the brand — he introduced a new business model. At the time, annual memberships were the norm, making gym access a luxury. John broke away from convention, implementing a “monthly subscription” model, which lowered the entry barrier for Taiwanese consumers. This model quickly gained traction, attracting a broad member base and sparking rapid growth in the fitness sector. Over time, monthly subscriptions became a hallmark of World Gym, fostering long-term commitment among members and making fitness a way of life.

This strategic innovation and keen market insight helped World Gym rise to prominence, securing its position as Taiwan’s most successful fitness brand.

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Operational Excellence: A Precision-Driven Expansion Strategy

For John, the true key to World Gym’s success lies in its meticulously planned store-opening and pre-sale system. He highlights that the most critical phase of launching a new gym is the two to four months of pre-sales, which directly influence the branch's future performance. Each location typically needs to secure between 2,000 to 2,500 members to ensure stable operations. The pre-sale process begins three months prior to opening, with intensive social media and on-street advertising campaigns. A dedicated sales team of 15-20 professionals works diligently to generate leads and engage potential members, often securing 2,000 pre-opening memberships. One month before the gym's official launch, these new members are invited for a preview, where fitness consultants/personal trainers provide equipment tours, assist with app setup, and promote training packages. By the time the gym opens, approximately one-third of the capital expenditure has already been recouped through membership fees and pre-sales, ensuring a cash flow-positive start. On average, the capital return period for each gym is just 24 months. This precision in operational planning and financial management has enabled World Gym to thrive in a highly competitive market.

As John puts it: "Just like 7-11 and many other successful retail businesses in Taiwan, we have transformed the fitness industry here to be very different, unique, and successful. We took the U.S. model and localized it, making tailored adjustments. For example, we placed a strong emphasis on personal training. This service grew from initially contributing just 10% of our revenue to now accounting for 50%. Personal training has not only generated strong cash flow but also significantly enhanced member retention, becoming the key factor that sets us apart in the global market."

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Resilient Growth: Team Strength and Stability

While World Gym has firmly established itself in Taiwan, the road to success has been anything but smooth. From financial crises to the closures of well-known brands like Alexander and Jia Tsz Fitness, 2005 Taiwan Credit Card Crisis, and then the impact of COVID-19, every major event has presented challenges for the fitness industry. Yet, John maintained a steadfast “never-give-up” attitude. Each crisis became a driver for growth, pushing Caraccio to optimize operations and expand digital offerings, enabling members to work out from home even during the pandemic.

Amid the pandemic’s difficulties, John chose to retain all trainers and staff, introducing “World Gym Online,” where trainers could virtually coach members at home and maintain their income. His “employee-first” philosophy is also reflected in World Gym’s policy of hiring all personal trainers as full-time employees. Unlike the industry norm of contracting trainers, World Gym invests in high-standard training programs within internal facilities, boosting morale and earning members’ trust.

Through consistent management and strict discipline, World Gym has never closed a single branch, a rarity in the fitness industry. The brand’s stability has become a benchmark for the industry. Moreover, World Gym’s career advancement opportunities are extensive and systematic, with many senior managers rising from entry-level positions and growing alongside the company for over a decade. As the company scales, the need for local and regional management increases, offering motivated trainers ample opportunities to advance within the organization. This approach has reduced industry turnover and cultivated a stable, elite management team to support World Gym’s ongoing growth.

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A Global Vision: The Acquisition of World Gym International

In 2024, under John’s leadership, World Gym completed the US$9 million acquisition of World Gym International, transferring the global brand’s headquarters to Taiwan. John describes this acquisition as not only a financial milestone but also a transformative moment that will take  World Gym to the next level. He considers the transaction “a good deal,” given World Gym’s legacy, strong brand recognition, and deep-rooted influence among millions of fitness enthusiasts worldwide.

World Gym’s heritage dates back to 1976, when its first gym opened at the famed “Muscle Beach” in Los Angeles, a hub for bodybuilders and fitness enthusiasts. The brand’s early ambassadors included international bodybuilding legends like Arnold Schwarzenegger and Lou Ferrigno, giving World Gym an iconic status in the fitness world. Today, with 271 franchised locations across six continents, World Gym remains a legendary brand known and loved by fitness fans around the globe.

Currently, World Gym International has established a strong franchise network in Australia, the United States, Canada, Mexico, and Brazil, and it continues to negotiate franchise agreements in other potential markets. John aims to add 30 to 50 new locations annually over the next two years, with a goal of ramping up to 100 locations per year. This expansion plan will not only deepen World Gym’s presence in existing markets but also extend its reach to emerging markets worldwide.

“This acquisition opens up enormous growth opportunities, allowing us to expand World Gym’s influence in global markets,” says John. With this acquisition, World Gym now holds the franchise revenue of 271 international locations and has the freedom to enter new markets without the previous administrative burdens, laying a solid foundation for worldwide growth.

Looking ahead, John envisions Taiwan and Southeast Asia operating under a direct model to ensure consistency and quality, while in Europe and the Americas, World Gym will continue its franchise model, expanding proven practices across the globe and developing more emerging markets. For Taiwan, a relatively small market, this international positioning is a significant breakthrough, equipping World Gym with wings to achieve its global aspirations.

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Fitness as a Life Commitment, Not Just a Workout

To John, fitness is not just about physical exercise. It’s a lifestyle, an interaction with others, and a source of motivation. His personal mantra of “never give up” is also the brand’s core message. Through building a strong community and introducing innovative classes and technologies, he hopes to make World Gym more than just a gym — a place where members feel empowered to lead healthier lives.

As Alex Lee, CEO of Quantum International, describes, “John is incredibly focused and humble, a CEO who listens intently to different perspectives. He knows every detail and number in his business. It’s even more impressive that, as a foreigner, he knows Taiwan’s cities, neighborhoods, even street names, like the back of his hand. He’s a hands-on leader who personally visits the gyms to understand what’s happening on the ground.”

Lee’s observation speaks to John’s deep involvement, commitment to detail, and connection to frontline staff and members. This dedication has helped shape a culture of continuous improvement, making World Gym an integral part of many people’s lives. With Taiwan’s gym penetration rate on the rise, John sees further potential for growth. World Gym will continue to build its brand, diversify its offerings, and provide comprehensive services, from fitness to health management and nutrition. “Our goal is to be a global leader in fitness, not just a local market champion.”

As the pandemic recedes, World Gym’s growth potential is becoming increasingly evident. Before COVID-19, World Gym’s growth was robust, and while the pandemic caused a pause, John is confident that as members return, World Gym will reach new heights — a trend already visible in fitness markets worldwide.

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Conclusion: “Never Give Up” – The Dream of a Global Fitness Brand

From a foreign entrepreneur to a pioneer in Taiwan’s fitness industry, John Caraccio’s story is one of resilience and determination. Through unwavering dedication, he has turned World Gym into Taiwan’s fitness leader and realized the dream of taking a Taiwanese brand global. As the fitness market continues to expand, John’s “never give up” spirit will guide World Gym to new heights, establishing it as a leading global brand. Driven by a powerful mission and a long-term vision, he is building a promising future for World Gym to shine in the international arena.

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If you would like to arrange a meeting with World Fitness Services’ Chairman John Caraccio, please contact yvonnehuang@qtumic.com.

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