There’s a gym in New York quietly reinventing the fitness industry. It’s called The Athletic Clubs, and its core innovation is simple: “squads.”

Squads are fixed groups of about 20 people who train together at the same time twice a week, then grab coffee afterward. Show up consistently and your squad becomes a group of close friends. It adds a team-like dynamic to your workouts that makes the routine feel more meaningful.

This flips the traditional gym model, where the best customers are the ones who always pay but never show up. At The Athletic Clubs, absence is bad. Showing up is essential because network effects turn each participant into part of the product.

That’s why the most valuable part of their offering isn’t the workout, it’s the network. New friendships are rare in your 20s and 30s, and at The Athletic Clubs, I’ve made dozens. Belonging is the differentiator that traditional gyms don't offer.

They just raised $3.5 million to triple their locations by next year. If they can preserve the sense of connection as they grow, this model won’t just spread, it will become the new standard.