Despite industry growth, smaller yoga studios face economic struggles
Small businesses like independent yoga studios are grappling with rising costs and numerous challenges in a post-COVID economic climate.
There's less foot traffic in cities as work from home patterns continue. Industries like yoga are seeing growth, but its mom-and-pop shops face a mounting threat to their survival.
Nicole Cronin began her yoga journey as a student, while working in the restaurant industry. She's now a teacher and co-owner of the Pad Studios in San Francisco.
"Both teaching it and practicing it has always awakened in me this feeling of clarity," said Cronin.
It's a vibe the Santa Cruz native shares with students through her dedicated practice.
"This feeling that everything is going to be OK; whatever life is throwing your way, you can handle it," said Cronin.
According to a recent analysis by Grandview Research, the global yoga market size is estimated at $116 billion in 2024, with revenue forecast to nearly double to more than 200 billion by 2030 and a compound annual growth rate of more than nine percent.
That sounds extremely promising, but independent yoga studios are competing with larger corporations that are also expanding rapidly.
"Keeping our prices deals and class packages fair, but also in an economy where cost of everything is rising," said Cronin.
Companies like CorePowerYoga have opened 220 locations in 21 states. In just the northern part of San Francisco, it has now expanded to nine studios.
Small businesses say it's like corporate book chains squeezing out indie bookstores decades ago.
Robert Chapman-Wood is a professor at San Jose State University's School of Management.
"It's natural there's going to be big companies taking some of that business. What we don't want is big companies just dominating," said Chapman-Wood.
Chapman-Wood says because small businesses don't have the marketing budget like larger companies do, just to name one advantage, it's contributing in part to a hyper competitive environment for mom-and-pop yoga studios, as bigger corporations take a larger slice of the pie.
"Because large firms have been so successful in creating chains of gyms, I'm not surprised they're able to leverage that same know-how to become dominant," said Chapman-Wood.
Other independent yoga studio owners say a way to support locally owned businesses is to buy monthly memberships or class packages directly from the studio, rather than using corporate apps like Classpass.
As a new entrepreneur, Cronin is zeroing in on what a small independent studio can provide.
"It's that sense of walking into a smaller mom and pop shop where they know your name and you know our name," said Cronin.
It's what makes a small business part of the community as they find ways to survive and thrive.