Key Takeaways

• Innovation and differentiation drive rapid studio growth: Moving away from traditional, clinical settings to offer modern, large-group classes helped Upstate Studios stand out and build a massive community.

• Full-time employment models solve industry retention issues: Offering secure career pathways with benefits (sick leave, maternity leave) attracts top talent and creates a fiercely loyal internal culture.

• Strategic expansion must align with personal lifestyle goals: Business growth should be dictated by cash flow, location viability, and the founders' personal 'why,' rather than expanding just for the sake of it.

Starting a Pilates studio requires passion, strategy, vision, and determination. Gail and Charelle, the sisters and co-founders behind the hugely successful Australian brand Upstate Studios, have these traits in abundance.

In our first episode of the Pilates Pillow Talk webinar series, Gail Asbell shared the insights and lessons she learned while turning a personal passion for movement into one of the fastest-growing studios in the country. Here is how they did it, and what aspiring owners can learn from their journey.

Did you miss the webinar? You can watch it here!

How did Upstate Studios begin?

Upstate Studios was born out of a personal need for healing and a desire to make fitness more engaging and accessible.

Both Gail and Charelle initially worked in corporate roles before a personal family tragedy led them to yoga to help cope. They soon realised the existing Australian yoga studios were either too spiritual or too physical for their liking.

Inspired by more accessible studios in the US, they decided to bring a fresh take on fitness to Australia. While they initially thought it would be a short-term project while raising young children, they quickly fell in love with instructing and building a community.

Why is innovation critical in the Pilates industry?

Innovating traditional practices allows new studios to capture a broader demographic rather than competing for the same clinical market.

Initially opening as a yoga and hot yoga studio, Gail’s severe pelvic instability during pregnancy led her to explore Pilates. She immediately felt the physical benefits but did not resonate with the highly clinical, physio-based style of the small classes available at the time.

This experience pushed the sisters to reinvent Pilates. They took the foundational principles of the practice and applied them to a modern, large-group format. This innovative approach helped Upstate stand out from its competition, leading to explosive community growth.

A Boutique Pilates Studio is: A specialised fitness facility that focuses heavily on unique class formats, community building, and specific movement modalities rather than generic gym offerings.

How can partnerships drive business success?

Successful business partnerships require shared values, mutual support, and clearly defined roles that allow each founder to work autonomously.

Working alongside her sister has been crucial to the success of Upstate Studios. They play to their individual strengths: Charelle focuses on operations, while Gail takes charge of branding and vision.

“I don’t know if I could ever have a business on my own," Gail noted. "We really give each other the autonomy to work in our own spaces.” Their shared values and personal connection have allowed them to create a highly effective leadership duo.

What is the best strategy for studio expansion?

Strategic expansion must balance organic client demand and strict financial planning with the founders' personal lifestyle goals.

Upstate's rapid growth was initially organic; their Geelong studio simply could not keep up with demand. However, when deciding how to scale nationally, they chose an unconventional route.

Despite pressure to franchise—which would have been an easier, self-funding route—they secured capital from the Cotton On Group’s Innovation Fund instead. This allowed them to retain total control over their brand, culture, and internal career pathways.

Gail emphasised the importance of keeping your “why” front and centre. “We've always wanted to grow, but we've always done it for lifestyle reasons," she explained. "We don't strive for balance... Just know that it kind of ebbs and flows between where you need to put your priorities.”

Why is full-time employment rare but necessary in Pilates?

Offering full-time employment with benefits attracts top talent, ensures high staff retention, and builds a dedicated culture that franchising cannot replicate.

The fitness industry is notorious for relying on casual contractors, which leaves instructors without basic job security or benefits. Upstate Studios took an innovative approach to employment to change this narrative and support female career pathways.

The Upstate Studios Employment Model

By finding non-teaching roles within the business for their staff, Upstate has grown from four full-time employees to over 50. “We want to take people on the journey with us," Gail said. "It's just awesome to share the growth with them."

What are the top tips for aspiring studio owners?

Aspiring studio owners must focus on securing the right location, establishing a rigorous financial plan, and fiercely differentiating their brand.

Drawing from her journey to building a globally recognised studio brand, Gail shared these critical pieces of advice:

• Follow your passion: Genuine passion is required to drive innovation and sustain you through the difficult scaling phases.

• Differentiate yourself: Do not copy your competitors. Take an innovative approach to your service offering and business model.

• Value your team: Create real opportunities for growth and reward your staff to attract and retain the people that matter.

• Assess your priorities: Do not expand just for the sake of expanding. Ensure your business decisions support the personal life you want to lead.

• Choose your location wisely: Finding the right property and securing a good lease is critical. If it is a bad deal, be prepared to walk away to protect your financial viability.

• Plan out your finances: You must know your cash flow and profit/loss margins. If numbers are not your strong suit, hire someone who can help.

Ready to build your own Pilates business?

Take the first step toward studio ownership by mastering your craft and securing a globally recognised qualification.

The success of Upstate Studios proves that with the right vision, business strategy, and commitment to community, there is plenty of room to carve out a highly lucrative career in the Pilates industry.

If you are ready to turn your passion into a profession, start by building a flawless clinical and practical foundation.

For more invaluable insights from leading industry success stories, keep an eye on the @unitehealth socials for upcoming episodes of our Pilates Pillow Talk webinar series! You can expect things to get hot, spicy and oh-so-revealing… Watch this space!