Source: TaiwanPlus
This episode of CEO Conversations is edited and republished with the permission from TaiwanPlus.
When John Caraccio arrived in Taiwan in the early 1990s, he didn’t imagine he would one day lead the largest fitness chain in Asia, let alone acquire the brand that started it all. But through a mix of strategic vision, operational discipline, and an unwavering commitment to execution, Caraccio has transformed World Gym Taiwan into an industry powerhouse—and is now setting his sights on the global stage.
In an exclusive interview, Caraccio shares insights on leadership, business growth, and the importance of adaptability in a rapidly evolving fitness landscape.
Taking World Gym Global
When World Gym Taiwan went public at the beginning of 2024, it was already a dominant force in the region. But Caraccio and his team had even bigger ambitions.
“We’ve been in Taiwan for 24 years, growing from a single club to 130 locations,” Caraccio says. “From the beginning, we’ve been the strongest operator in terms of best practices, growth, and scale. The next logical step was to take what we’ve learned in Taiwan and apply it globally.”
That opportunity came with the acquisition of World Gym International, the brand’s parent company. With the deal, Caraccio’s team now owns the franchise system and operational rights worldwide—a move that positions them to expand beyond Taiwan into key markets like Southeast Asia.
“It was a perfect fit,” he explains. “As the largest operator in the system, we already had the credibility. When we became a public company, the previous owners saw our transparency, financial strength, and operational expertise. That built the trust necessary to finalize the acquisition.”
From Finance to Fitness
Caraccio’s path to leading a global fitness brand wasn’t conventional. He started his career in finance, first as an analyst and later as a consultant helping U.S. companies enter Asia. It was through one of these projects—launching California Fitness in Hong Kong—that he had his first real exposure to the fitness industry.
“I came from a financial background, but I was drawn to the operations side,” he recalls. “When I got involved with setting up gyms, I saw firsthand how much potential there was in the industry. That’s what led me to World Gym.”
The Business Model That Changed Everything
One of the biggest differentiators of World Gym Taiwan is its financial model. Unlike many gym chains that rely on prepaid memberships—where customers pay for multiple years upfront—Caraccio built his business around a subscription-based model with monthly dues.
“The prepaid model is a disaster waiting to happen,” he says. “Gyms that collect all their revenue upfront run out of cash when economic downturns hit. That’s why so many of them collapsed.”
World Gym Taiwan’s subscription model created a steady, predictable cash flow that allowed it to weather financial crises, including Taiwan’s infamous credit card crisis that wiped out competitors like Alexander Health Club and Jia Tsz Group.
"We knew sustainability was key," Caraccio explains. "With monthly memberships, we had recurring revenue. That gave us stability and the ability to reinvest in growth."
Scaling Up with Structure
World Gym Taiwan’s expansion strategy is a masterclass in systematization. The company has perfected a playbook for launching new locations—one that has allowed it to scale rapidly without sacrificing quality.
“We opened three new clubs in October, two in November, and six pre-sales in December,” Caraccio says. “That kind of growth is only possible because we have a proven system.”
The process includes:
- Rigorous site selection (looking for high-traffic areas with strong consumer demand)
- Structured pre-sale marketing to secure thousands of members before a gym even opens
- Standardized training for new hires to ensure service quality from day one
"It's all about execution," he emphasizes. "Once you build the right systems, expansion becomes a matter of replicating what works."
A New Approach to Personal Training
One of the most striking aspects of World Gym Taiwan’s model is its emphasis on personal training (PT). While many gyms treat PT as an add-on service, World Gym has made it a core revenue driver—growing it from 10% of revenue in the early days to 50% today.
“For comparison, Planet Fitness—the largest gym chain in the world—does zero personal training,” Caraccio notes. “Most gyms that offer PT generate only 10–20% of revenue from it. We’ve systematically built PT into a major business.”
A key factor in this success is the company’s decision to employ trainers as full-time staff rather than freelancers. This ensures better service quality, stronger member engagement, and higher retention rates.
“We invest heavily in our trainers,” he says. “We recruit 120–150 new trainers every month, provide structured certification programs, and create long-term career paths. That stability benefits both the business and our customers.”
Beyond Fitness: Building a Lifestyle Brand
For Caraccio, World Gym isn’t just about fitness—it’s about creating a brand that integrates into people’s daily lives.
“Starbucks and 7-Eleven adapted their models for Taiwan and became essential parts of the culture,” he says. “That’s what we’re doing with World Gym.”
This vision extends beyond the gym floor. The company has launched juice bars, protein shake stations, and branded retail products to enhance convenience for members. Digitalization is also a priority, with an app that tracks workout frequency, body composition, and even gamifies fitness with rewards and challenges.
“It’s about making fitness part of a lifestyle,” Caraccio says. “Whether it’s through digital engagement, nutrition offerings, or wellness initiatives, we want to be more than just a gym—we want to be an integral part of our members’ health journey.”
Going Global: The Next Phase
With Taiwan on track to reach full market saturation (the goal is 250 locations, up from today’s 130), Caraccio is looking outward. World Gym already has a presence in Brazil, Mexico, Canada, Australia, and Germany, and the company is targeting Southeast Asia and East Asia as the next frontiers for corporate expansion.
“The U.S. gym penetration rate is around 23%, while Taiwan’s is just 4.5%,” he notes. “That shows how much room there is to grow. We’re aiming for 2,000 franchised locations worldwide and 500 company-owned locations in the next 15 years.”
Advice for Young Entrepreneurs
When asked what advice he would give to aspiring business leaders, Caraccio offers two key lessons:
Avoid Debt – “It’s easy to get into debt, but hard to get out. Stay financially disciplined and focus on sustainable, organic growth.”
Understand Your Business Engine – “You need to know exactly how your business makes money. If you don’t understand your revenue engine, you’ll never achieve financial freedom.”
Ultimately, Caraccio believes success is about discipline, execution, and long-term thinking.
“Twenty years ago, when I told people I wanted 13 locations, they thought I was crazy,” he says. “Now we have 130, and we’re just getting started.”
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