When Gold’s Gym started, they dominated the gym space. They offer expert personal trainers, yoga classes, and a protein shake bar. The company built such a strong brand they sell merchandise and a lifestyle.

But new competition has entered: Planet Fitness is disrupting the industry by offering monthly subscriptions as cheap as $10 per month, free pizza, and a no-frills environment.

Gyms must enroll ten times their max capacity to be profitable. So they design their subscriptions to lure customers in and keep customers in long contracts. But Gold’s suffers from outpricing much of their market.

About 20 percent of people in the U.S have gym memberships. Planet Fitness designed its plan to capture the other percent through an environment welcoming beginners and pricing subscriptions cheap enough that consumers would continue their membership, even if they aren’t going to the gym.

Planet Fitness’s revenue has increased 30 percent over the last year. Its value quadrupled to $6 billion since 2015, with only 1,700 locations out of its target of 4,000.

Competition benefits consumers. Gym patrons pay for certifications of personal trainers through memberships. But at Planet Fitness, you only pay for the machines and free food. Moreover, cheaper gym options will attract more people who want to exercise but don’t because of pricey subscriptions.