Combining retro vibes with cutting-edge tech, an energetic CEO found success by turning his passion for exercise into lucrative business ventures

by Laura D.C. Kolnoski • Photos By Amessé Photography

Eric Casaburi knows there are only so many hours in a day, and a “making every minute count” mantra spurred him to take his existing Retro Fitness business to the next level through franchising.
Since opening his first gymnasium in Howell in 2004, he now presides over no fewer than 133 Retro Fitness locations around the country, with more opening this year.

Dominating the gym world is only the beginning of his growing health-related empire. The owner of 20 Let’s Yo! Frozen yogurt franchises, he is about to release his first book as well as launch a supplement company. His appearance on the television reality show Undercover Boss in 2013 has led to a hosting gig on a new business-related reality show slated to debut in about a year. With the stamina that comes from a lifetime of exercise and healthy living, Casaburi understands however that he can’t do it all alone. “How I was raised was a big component of who I am today,” Casaburi said. “When someone constantly believes in you, it’s difficult not to become successful if you channel it in the right way. Every successful person has someone rooting for them in their corner.”

Casaburi was speaking of his mother, who died when he was 15. Always interested in fitness and a self-confessed gym rat since his teens, he channeled his inner grief into an external passion, studying exercise science while taking the lowest level jobs at local gyms. He went from trash disposal and toilet cleaning to partnering in his first gym in Brick 13 years ago. He eventually took over and re-branded the location, opening more locations in Manahawkin, Cherry Hill, and Lumberton. When his children came along, he realized the 12-plus hour days, 365 days per year, were keeping him from the joys of parenting. Examining the franchise world as well as the growing size of his catalogued best practices, Casaburi decided it was time to take it to the next level.

“I saw that for the other brands of gyms, there wasn’t a lot of support as there is with food franchises like McDonald’s,” he said. “So, we created operations manuals with systems that were a draft for the large franchisee book we have now. I realized I was making a model for myself and created management- type environments that would allow others to take over so I could take a few days off or go on vacation.” To learn about franchising, he read up and attended seminars. Simultaneously, others, including members, were asking to get involved in Retro Fitness. He identified the right people to grow at a safe but rapid pace while increasing his market share. Casaburi saw franchising as a winwin that could offer members more benefits while strengthening his brand. (One of the perks of joining is the ability to utilize any location.)

The business employs more than 1,500 people at its locations, with trickle down benefits for the many vendors who service it in 15 states. It costs about $1.2 to $1.8 million to open a franchise, and while return on the investment tends to be high, a franchisee requires a net worth of $1.5 million or higher, plus assets. The most successful franchisees have business backgrounds and Type A personalities. They also follow Casaburi’s model to the letter.

“We have found that those who follow the model the closest are the most profitable,” he said. “Consistency and control are key. We try hard to ensure there is no deviation, which requires lots of training. It’s a service business, so upkeep and maintenance are essential. The most successful franchisees get that.”

Various elements of the franchise model contribute to its appeal. Early on, Casaburi realized his demographic had an affinity for all things “retro” and combined that with the concept of “retrofitting” one’s body. Timing played a part, too, as the decidedly retro Johnny Rocket’s hamburger chain was booming. Casaburi painted his machines the same color, installed black-and-white floors, added Happy Days vibes, and extended the theme throughout his locations. Being a keen observer led to another popular Retro Fitness innovation: the Cardio Movie Theater, where clients can work out while watching films.

“In our Manahawkin gym, we had a small room off to the side with a dozen machines and televisions,” he related. “At night, folks would turn off the lights while in there. I watched who came in.

It was mostly new members starting out who wanted some privacy, so I created a theater atmosphere and placed the theaters near the locker rooms so clients could go right from the locker rooms to the machines and back. We try to overcome clients’ barriers and are thoughtful about the little nuances. For some, it’s all about distraction.”

Casaburi’s public relations firm led him to CBS, where his popular appearance on Undercover Boss resulted in him being the first on that series to fire someone on live television. He was already a fan of the show, watching it frequently with his family. The goal in agreeing to appear was to learn whether the systems he put in place were working. He called it an, “amazing, positive experience.”

“It was fantastic for the business,” Casaburi said. “Almost overnight, it took us across the map. As the show was aired in each time zone, our website was flooded repeatedly.” New members quickly learn that while the ever-evolving fitness world is bombarded by trends, true success comes from a basic, “calories in, calories out” formula.

The gyms offer top-of-the-line cardio and circuit training exercise equipment, computerized treadmills, elliptical and resistance machines, and free weights, all painted in the chain’s trademarked colors. Personal training, group fitness, a Retro Blends smoothie bar, supplements, and chiropractic services are all available at an affordable $19.99 per month. The gyms retain members through additional offerings including child care, group fitness, a pro shop, and more, which also provide franchise owners with multiple revenue streams.

Maximizing the “distraction” aspect, Casaburi has embraced high-tech interactive entertainment. New software, uploaded weekly, allows locations to take all members’ information and preferences in music and entertainment and put them into a cloud so they can access what they enjoy most while working out. Members can also program the content from their handheld devices. Treadmills have Direct TV and iPod docks, and bikes are connected to the Internet.

“I sell sweat and pain for a living; what’s harder than that?” he asked rhetorically. “So we try to keep our members entertained.”

Significantly less painful are his Let’s Yo! franchises, a result of Casaburi’s sweet tooth. (“I like to get involved with businesses I love and healthy treats were in our wheelhouse.”) He sourced a qualified dairy farmer to provide high-quality product and added a social experience to stand out above other frozen yogurt purveyors. He realized he could systemize it as a franchise, too, then sought out specific markets. Location start-up costs run about $300,000 to $400,000, he said. Let’s Yo! shops, now in New Jersey, Pennsylvania and Florida, are, “…a fun place to hang out while enjoying a healthy alternative,” he explained. Continuing the high-tech theme, the shops have iPads imbedded in tables and flat-screen, closed-circuit televisions.

Originally from Staten Island, Casaburi, 40, resides in Marlboro with his family. An avid golfer, he travels to Orlando several times a year on family vacations. His Retro Fitness headquarters is located in Colts Neck in a somewhat unlikely location in the midst of that tony township’s historic village district. (What is now Retro Fitness HQ was Colts Neck’s original firehouse.) For years, it had a second life as The Honey Shop, where a local resident cultivated and sold homemade honey before it was fashionable. Fittingly, Casaburi reports that at least twice a year, folks still come in asking for the late Harry Barth and his delicious, healthy honeys. Casaburi’s first book, Just Make Money – The Spirit of an Entrepreneur is due out this spring.

Retro Fitness
43 County Road 537, Colts Neck / 732.431.0062 / retrofitness.net