What is the future of Soul Cycle?

Soul Cycle, the New York-based indoor cycling company, has been facing an increasingly difficult quarter as they attempt to rebound from a very public boycott. Soul Cycle, founded in 2006 in the Upper West Side of Manhattan, seemingly enjoyed overnight success by creating spin studios with a distinct vibrancy. Soul cycle’s price structure, studio locations and amenities offered have created a cult following of wealthy millennials.

However, in 2009 The Related Companies, a real estate development firm, bought a majority stake in Soul Cycle through their ownership of Equinox. The Related Companies founder, billionaire Stephen Ross, is also the owner of other popular millennial brands such as Equinox Fitness, PURE Yoga, numerous fast casual restaurants and the Miami Dolphins NFL team. Yet, before 2019 the political ethics of Stephen Ross were not apparent to the consumers of the brands he owns. Furthermore, numerous customers of Soul Cycle were unaware of the connection of Stephen Ross and Soul Cycle. Which is why Stephen Ross’ fundraiser held for President Donald Trump’s re-election was met with immediate backlash.

A core consumer base of Soul Cycle is the LGBTQ+ community, people of color and women. All groups that have faced considerable pressure under the Trump presidency. Therefore, when Stephen Ross held a fundraiser in support of the President’s re-election, these groups were understandably upset and immediately boycotted Soul Cycle and other Ross owned companies. Celebrities and activists joined in, calling for the boycott of the spin company. This caused a 12% decrease in the amount of classes booked in the month of August, whereas the year prior only saw a 4% decrease in the same month.

In response, the current CEO of Soul Cycle issued a press release stating that the views of Stephen Ross do not reflect those held by Soul Cycle. But, will apologizing for the views of an owner be enough for Soul Cycle to rebound?

CEO Melanie Whelan has been on a campaign around the United States visiting each Soul Cycle location to hold frank discussion with staff to show solidarity in her commitment to making sure Soul Cycle remains an inclusive fitness company. Yet, many complain that not much has been done to alleviate the now strained relationship with the customer. In fact, Soul Cycle continues to open more studios both at home and abroad.

Prior to the recent controversy, Soul Cycle was already under fire for what many saw as pricey fees for classes thus limiting the opportunity for many to participate. Does the current socio-political culture allow companies like Soul Cycle to cater to an audience that seems to be in direct opposition of owner Stephen Ross? Can a company successfully distance itself from ownership views? Does Soul Cycle need to do more to demonstrate their commitment to the communities they serve?

Halzcak, S. (2019, September 17). $30 for a Single SoulCycle Class? Not When a Recession Hits. Retrieved from https://www.bloomberg.com/opinion/articles/2019-09-17/more-than-30-for-a-soulcycle-class-not-when-a-recession-hits.

Parisi, D. (2019, October 1). Inside SoulCycle’s expansion to be a fashion brand. Retrieved from https://www.glossy.co/fashion/inside-soulcycles-expansion-to-be-a-fashion-brand.

Read, B. (2019, August 8). Unfortunately All These Millennial Brands Have to Be Canceled Too. Retrieved from https://www.thecut.com/2019/08/stephen-ross-owns-more-millennial-brands-than-soulcycle.html.

Reader, R. (2019, September 19). After boycotts over a Trump fundraiser, SoulCycle customer numbers plummet. Retrieved from https://www.fastcompany.com/90405922/soulcycle-customers-take-a-dip.