Get to Know
SENIOR DIRECTOR OF FRANCHISE SERVICES & INDIRECT PROCUREMENT
Steve Fairhurst
2023 Issue 3 | GearedUp
22
Could you tell us about your title and your role ? What are some of your day-to-day responsibilities ? I am the senior director , indirect procurement and franchise services . My role has two primary functions : In the procurement capacity , my team and I source and manage the programs that supply clubs with critical development and operating goods and services . Indirect procurement relates to goods and services that are not fitness equipment-related . Beyond procurement and vendor management , I work directly with our Development Team to forecast and drive new club openings . I took on this latter role in early 2022 , and I ’ ve enjoyed working more closely with franchise developers and HQ stakeholders to understand the monumental work that goes into store development , especially in this climate .
Tell us about your career before PF ® .
I came to PF from a very different background but with more parallels than you may think . I began my career with Premier , a leading group purchasing organization for hospitals across the country . Premier consolidates spend amongst its member hospitals to negotiate better contracts with leading manufacturers and distributors like Johnson & Johnson , 3M and Cardinal . From Premier , I moved to one of our member hospitals located in Brooklyn , New York . That second job gave me the opportunity to view procurement and supplier arrangements through the local lens instead of the big , national scope .
What inspired you to get into the health and fitness industry ?
What drew me to Planet Fitness ® was its brand power , as evidenced by its growth . In my prior career , I remember our CFO detailing our quarterly performance during an employee town hall . We had not met our financial goals , and it was summed up as , “ Not enough people came to the hospital .” It occurred to me that
I wanted to represent a brand where people want your product , not because misfortune forced it upon them ( Shoutout to those healthcare workers , including my wife , who answer that call ; it just wasn ’ t for me ). I ’ m honored to be a part of a brand where so many millions of people seek out what we provide , and they ’ re excited about it . That ’ s a big motivation for me .
What goals do you have outlined for the coming 12 months ?
In this inflationary environment , my roles of procurement and new store development are intertwined . My goals are primarily focused on ensuring franchisees have what they need to open clubs ( i . e ., HVAC ) and doing what we can to insulate franchisees from rising costs . Smarter purchasing and business reviews that yield new supplier contracts are a couple of tools that we can use to lessen the impact of rising costs .
How has the brand and industry evolved in your time with Planet Fitness ?
The biggest evolution I ’ ve been witness to is the consolidation of brand purchasing . A couple notable examples include our spend with : ( 1 ) Staples , where program participation has risen from about 25 % to 80 +% in five years ; ( 2 ) Pepsi , where program participation has risen from roughly 10 % to 70 +%; and ( 3 ) local marketing agencies where we ’ re successfully working with two partners . Not only does the consolidation drive more competitive pricing , but it also promotes shared learnings and operational efficiencies .
How does the collaborative partnership between PFHQ and the PFIFC assist you in your role ?
The improved procurement practices I mentioned above would not be possible without the buy-in from franchisees . One of the most pivotal , and definitely fondest , moments of my time at