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Industry Insights: The State of Children’s Activity Providers in the UK

In a dynamic world where children’s activities play a pivotal role in shaping young minds, understanding the landscape of this industry becomes paramount. Recently, a comprehensive study delved deep into the realm of children’s activity providers in the UK, offering intriguing insights into their challenges, triumphs, and the evolving market dynamics.

Conducted with meticulous detail, the research encompassed inputs from over 100,000 children and over 50 prominent brands. By amalgamating survey data from ICAP members, Franscape analysis, and reports from reputable sources like OpenGov and the Office for National Statistics, the study painted a vivid picture of the sector’s pulse.

Market Overview:

The findings revealed that the UK Annual Market for Children’s Activities stands at an impressive £17.7 billion, showcasing the significant economic footprint of this industry. Delving deeper, it was discovered that the average annual spend per child amounts to £1400, underlining the substantial investment parents are willing to make in their children’s enrichment.

Customer Priorities:

Unveiling the heartbeat of the industry, the study asked children’s activity providers a pivotal question: “What one thing would make life better?” A resounding 72% echoed the sentiment for “more bookings,” emphasising the paramount importance of sales in growing businesses. 16% said more staff and 11% said more venues. This landslide result highlights the need to focus on supporting children’s activity providers to increase their sales. 

Growth Expectations:

Optimism thrives as 70% of surveyed providers anticipate business growth of at least 5% in the upcoming year. This bullish outlook speaks volumes about the resilience and adaptability ingrained within the sector.

Lead Generation Insights:

Perceptions clashed with reality when it came to lead generation sources. While providers believed organic social channels to be a prominent source, the data revealed a different narrative, with word-of-mouth emerging as the unassailable champion, driving a staggering 49% of leads. This disconnect highlights the need for a recalibration of marketing strategies to align with actual consumer behaviours. Here’s the full data:

  • Children’s activity providers perceived that 38% of sales came from word of mouth. The data showed that a staggering 49% of sales came from word of mouth.
  • Children’s activity providers perceived 17% sales to come from paid social ads. The data showed it’s 12%.
  • Children’s activity providers believed that 44% of sales came from organic social. The data showed the reality is 30%.
  • And the data interestingly showed that only 8% of sales come from internet searches. 
 

Economic Realities:

Navigating through uncertain economic times, providers face challenges due to a decline in affluent young families. However, a silver lining emerges as the data highlights the untapped potential within older demographics, particularly grandparents, who emerge as a promising target market.

Trial Sessions and Pricing Strategies:

A glimpse into trial sessions showcased varying approaches, with 16% offering no trials, 50% opting for discounted trials, and 34% providing free trials. Moreover, the study unveiled a spectrum of pricing strategies, with £8-£10 emerging as the sweet spot for session costs, catering to diverse consumer segments. Here’s the full date on pricing:

  • 0% of children’s activity providers charge less than £5
  • 34% charge between £5 and £7
  • 45% charge between £8 and £10
  • 5% charge between £11 and £13
  • 0% charge between £14 and £16
  • And 16% charge over £16
 

Key Takeaways:

As providers make their way through this uncertain economic landscape, several crucial considerations come to the forefront:

– Harness the immense potential of word-of-mouth marketing through testimonial collection and referral schemes.

– Embrace the uncertainty of the economy by diversifying target demographics, with a keen focus on engaging older generations.

– Fine-tune pricing strategies to resonate with consumer preferences, leveraging trial sessions as a gateway to engagement.

– Cultivate a community-centric approach, prioritising organic marketing channels to foster genuine connections and sustainable growth.

In conclusion, the research shows the diverse tapestry of children’s activity providers in the UK, offering a roadmap for navigating challenges and maximising emerging opportunities. Armed with these insights, providers can embark on a journey of growth, enriching the lives of more children and families in an ever-evolving landscape

By becoming a member of ICAP you’re joining a community of like-minded professionals and business owners in the children’s activity sector working towards excellence

John Preston

Mathnasium, Managing Director (UK) & Master Franchisee

John is a former investment banker that quit the city to scratch that entrepreneurial itch and become a franchisee, whilst making a difference in children’s lives. John has successfully scaled his own network of centres as well as scaling Mathnasium and supporting it’s network of franchisees in the UK. John is passionate about franchising and improving the lives of others, whether that is helping students who struggle with mathematics or assisting franchisees to become leaders of successful businesses.

Katie Cannon

Gold Medal Business

5 x British Champion turned 7 figure entrepreneur Katie Cannon has been in the children’s activity industry for the last 20 years.Over the last 20 years, Katie has been in the trenches building classes in gyms, studios, leisure centres etc. She has owned gyms, closed gyms down, hired amazing teams and let teams go. You name it, she has done it in this industry.

Katie now teaches entrepreneurs in this industry to uplevel their business systems and teams to scale their business. One of the key attributes which makes gold medal truly unique is she not only brings her 20 years of experience, she is still in the industry today, bringing 20 years of knowledge plus whats working today.

Andy Georgiou

Andy is the Founder of ICAP and a leading UK Franchise Business Consultant. He is fiercely committed to helping children’s activity providers build successful and profitable businesses. With qualifications in Business Management, Digital Media and Marketing, he has helped build, advise and grow leading 6 and 7 fiqure children’s education, sports and activity brands in the past 17 years.

Theo Millward

Theo Millward is a graduate of Lancaster University with a BBA in Management. In 2016 Theo purchased UK swim school, Swimtime from the founders which teaches 20,000 children a week. Following a multi-award- winning digital transformation, during the global pandemic, Theo and his team founded Franscape, a saas that digitally transforms Franchise brands. FranScape won New Business of the Year at the UK Business Awards.

Pip Wilkins

Pip Wilkins is the Chief Executive of the British Franchise Association (bfa). With 25 years’ experience in the franchise sector, Pip has worked her way up within the Association, gaining insight from all areas of the business and the franchise industry. She is well-known and highly regarded in franchising for her dedication and depth of knowledge. Pip regularly speaks at conferences and seminars both domestically and internationally, as well as writing on franchising matters for national, local and franchising trade press. Pip is also a regular judge for the annual bfa HSBC Franchise Awards, the Franchise Marketing Awards and Global Franchise Awards. Pip represents the UK at both the European Franchise Federation (EFF) and World Franchise Council (WFC). The bfa has grown to be one of the largest franchise associations in Europe, and one of the most successful associations in the world.

Craig Jones

Chief Children's Experience Officer

Craig has over 30 years’ experience working with children and young people in the education, sport, health & fitness and childcare industries. Craig is a high energy professional, with a passion for providing high quality, engaging experiences that are sustainable solutions to childcare and children’s activities, with a focus on increasing physical activity levels within children and young people. Craig’s approach is nurturing, developing and supporting the best people to manage, lead and inspire children’s professionals within organisations. A results orientated individual with experience across the UK and in Europe, including mergers & acquisitions along with implementing Children/Family strategies across 5 countries, including; product development, financial/operating models, training, H&S, Compliance and full stakeholder engagement from Board level to Government.

Ackora Ansah

Marketing Manager - We Make Footballers

Having previously navigated the dynamic world of marketing with beauty industry leaders such as L’Oreal, Clarins and Unilever, I’ve gained a breadth of experience in how to acquire customers and grow brands.

Now, as Marketing Manager at We Make Footballers I support over 50 franchisees across the UK, US and UAE to scale and grow in an ever-changing landscape through strategic local marketing. Alongside this, I run 3 of my own We Make Footballers franchises and so look forward to sharing my learnings from both perspectives.

Tamara Holland

Marketing Consultant for Children's Activities Providers

Tamara is the award-winning expert behind Dot & Stripe, a marketing consultancy for children’s activities providers and family focused businesses.

Tamara works with franchisors, franchisees and independent businesses to nail down the best marketing strategies to get them results and has over 20 years’ experience across the marketing mix.

She’s also been on both sides of the children’s activities industry – as a franchisee and leading the marketing for a franchise.

She has literally got her hands dirty- so she really gets it. You want to share your amazing activities business with your perfect customers- but finding the right direction, time and resources can be tricky.

Tamara has truly got the expertise, the support, and the accountability to make sure your marketing is not just done but done in a way that’s absolutely perfect for you.

Alexis Boyett

Bippity Boppity Bankrolls / Business Coach + Speaker

BECOME FRIENDS WITH THE VILLAIN WITHIN: HOW TO TURN YOUR INNER-CRITIC INTO YOUR BIGGEST SUPPORT SYSTEM

No amount of positive thinking will overpower an engrained negative belief. Regardless of how hard we try, how many therapists we talk to, or how many meditations we do, nothing seems to silence the inner-critic within. So instead of trying to silence it, what would happen if we started to communicate with it? As someone who struggled with a poverty mindset, eating disorders, bullying, toxic relationships, and no support system, Alexis understands how loud and how powerful your inner-critic can be. Instead of giving into the voice, Alexis learned how to harness the power of it and use it to master her self-love, propelling her into her dream life. In the past 15 years she has been a professional model/actress in Hollywood, run a nationwide company, traveled the world full-time and become the most influential business and personal development coach in character entertainment. It all started when she learned how to communicate with her inner critic and use its voice as the compass to her dreams. In this keynote, you will walk away with: A new understanding of your story and how it affects your business How to communicate with your inner critic to support your vision How to self-soothe when the villain within is on a rampage

Bea Waterfield

Owner & Franchisor Baby College

I’ve been working in the sector for 20 years. In that time I have been a franchisee, an independent business owner and a franchisor. I have come through a few challenging times (especially the last few years) along the way but have built Baby College to an international network of 30 businesses in the last 10 years in a sustainable way with a consistent profitable self-sustaining business year on year. I don’t think there is a very clever secret to that. Looking back I think I rely on hard-work, determination, courage, indefatigable positivity and to be friendly to everyone…

Gayle Berry

Founder of global parent & baby wellness business, mentor & philanthropist

Gayle Berry-Founder of Blossom & Berry, BA, Dip. Law, PGCE, IAIM, Birthlight, Dip Hypno, Clinical Hypnotherapist, Life Coach ITEC Massage, Author, Pregnancy and Post Natal Yoga Teacher, Children’s Yoga Teacher, Doula & Sleep Consultant.)

Gayle is a love activist, community architect, the founder of Blossom & Berry, an expert on baby massage, baby yoga and nurturing care for babies and the world’s leading mentor for parent and baby businesses.

Gayle is the mother of three amazing humans who have inspired her journey to teach love to millions of babies through her connected community to create a more peaceful and joyful life for all.

Gayle has over 20 years of experience empowering others to share the power of nurture and nature for families across the globe.

Gayle is an advocate for nurturing touch for babies, a multiple publisher author, and speaker on “Nurturing The Future-1001 days to save the world’

She is also very proud to be an ambassador for a number of mother and baby wellness brands and she is Channel Mums’ Baby Massage Expert.

In more recent years Gayle has mentored the world’s leading birth and baby schools to expand and scale their impact to create even more connection. Everything she does comes from a place of love, connection and community

Contribution is also a huge part of her why. She is the co founder of the charity Love Support Unite where she has enabled a safe motherhood project for mothers and babies in poverty in Malawi impacting hundreds of vulnerable babies.

“All babies deserve to be seen, heard and express their needs. When we respond to babies with love, we teach that the world is a safe and loving place and help children reach their full potential.”

Sarah Booth

Xero - Partner Consultant

My passion has always been to help business owners understand the numbers and how a great Accountant, along with cloud software, can provide the financial data they need to make the best business decisions. Prior to joining Xero I worked as a qualified Accountant and specialised in supporting my clients to understand their business financials in real-time. Working with Xero has given me the opportunity to support Accountants across the country in adapting to the cloud, improving their processes and ability to provide insights for their clients business.

Lou Willis-Keeler

CEO of Psych-Logical (Safeguarding and Behavioural Consultancy)

An international safeguarding consultant with over twenty years experience in safeguarding and behavioural science . Working with a wide range of organisations, across sectors to ensure compliance as a minimum and outstanding practice as a reality. Lou has depth of professional expertise working with a variety of organisations and before forming Psych-logical was an area manager with the NSPCC / ChildLine. She has been commission by the Department of Education to develop best practice resources and is work on professional standards for the out of school settings. An energetic, innovative and engaging speaker who simplifies safeguarding and makes it accessible to all.

David Batch

Premier Education Group

Last academic year, Premier delivered 723,815 hours of activity in over 10% of the nations schools. In addition, as the largest supplier of School Holiday Activity days in the UK, over 20,000 parents have given a 5-star Trust Pilot rating. Premier represents the sector on several Dept. of Education steering groups and was winner of ‘Best Business Culture’, at the 2023 Business Excellence Awards. David founded Premier 25 years ago and since then, the group has grown to encompass businesses which include a mother and child fitness franchise, a school improvement business and is an Ofsted rated ‘Outstanding’ Independent Training Provider.

Natalia Shvarts

Franchise Lawyer

Natalia is an experienced franchise solicitor who is passionate about her clients and their success. Having worked with franchisors, franchisees and spent time in-house, Natalia really has seen it from both sides of the fence. Natalia is a member of the BFA and is a regular contributor to franchise publications and franchise events.

Ellie Baker

BilinguaSing

After 10 years in the UK education system, Ellie quit the classroom to set up her award-winning children’s language & music class company, BilinguaSing, which she franchised in 2014.

Today Ellie uses all of her teaching and business experience to coach educators to become business owners, writes about education and helps her network of BilinguaSing franchisees to thrive in their businesses. In 2023 she authored her first solo book, The 2 Hour Tutor; which reached the #1 spot in 3 educational categories.

She’s an ‘extroverted introvert’ who dreams of living a nomadic life, educating her 3 kids while travelling the world; but for now lives happily in sunny Maidenhead. 

Stacey Cann

Franchise Marketing Strategist

Stacey Cann is an award winning franchise marketing strategist who specialises in helping franchisors create successful franchisees and make more money in their business. Stacey has 20 years marketing experience, working with global companies, including Chelsea FC, Jellyfish, BT, Sports Direct and The Telegraph. Marketing training and empowerment is at the heart of everything Stacey does. Her work has been featured in numerous press articles, including; The Sun, The Metro and iNews. Stacey is a franchisee and Franchise Development Coach for multi-award winning Daisy First Aid. She consistently helps new franchisees with no previous business or marketing experience to start making money immediately and hit their initial goals within 6 months. Her proud moments include Daisy First Aid being awarded the British Franchise Association 2023 Continuous Improvement award and helping numerous women successfully leave their previous jobs to become profitable franchisees to fulfil their dreams of independence and work-life balance. Stacey lives in Surrey, UK, with her partner and 3 children and is also a passionate advocate of parents’ mental health following her own experiences as a self-employed mum.

Karl Fox

Franchise Support Director

I’ve worked in the franchise industry for nearly 25 years, building a successful multi-territory franchise business which deploys over 100 Activity professionals and Playworkers. Utilising my experience within my role as Director of Franchise Support for Premier Education, I support our franchisees to build successful, sustainable busineses as we continue to grow our wider network.

David Pearce

Owner / Director - Rhythm Time

Following a successful corporate career as Divisional MD of a FTSE 250 PLC, I started helping people to get into Franchising in 2008. I have been involved in many different Franchise Businesses as a Franchisee, Franchisor and as a Consultant and Coach to Franchisors. My advice has been sought by a variety of leading UK and International Franchise Brands. Finance & Numbers form a fundamental part of any successful business and I am passionate to help others to get to grips with their numbers!

Al Wadey

Book That In, CTO

Al Wadey is the CTO of Book That In, the market-leading booking system for activity providers in the UK, and is also the Vice President of Strategic Consulting at Aprimo, the international software company. Al’s extensive background in business change, digital transformation, and strategic consulting, especially his role in leveraging technology for superior customer experiences, positions him as a leading authority on innovative strategies. His blend of technical prowess and commercial insight, paired with his experience in guiding businesses through digital evolution, means he will be bringing a unique viewpoint to ICAP’s strategy panel this year.

Phillip Archer

Business Planning & Funding Manager

Phil joined d&t in 2019. Background in sales & marketing in asset finance and funding spanning more than 30 years. Responsible for growing the commercial side of d&t to include fully independent business planning, funding, asset finance and of course the full range of accountancy solutions. Recently with Franchise Finance which he joined following a career with roles in the UK and across Europe starting with Lombard/Natwest group and latterly with Renault Banque and SNCF, the French state-owned rail goliath. Phil has a wide and diverse background, grounded in pragmatism and is passionate about supporting both new and existing franchisees on their journey. For a new Franchisee the proposition can be quite daunting and Phil’s goal is to help the franchise industry demystify and simply the business start-up process into one seamless and fully integrated solution. This avoids confusion, self-interest and contradiction and ensures a rounded, more holistic approach as your advisor becomes your trusted partner for the long term. Much of this is achieved by helping franchisees align their personal and business goals and in ensuring sound business planning practices become habits and management tools. Phil contributes to a number of industry publications and forums and is a judge for both Workbuzz and Elite100.

Frank Sahlein

Frank has been active in the Children’s Activity Center industry as an athlete, coach, business owner, consultant and business broker. He is a native of San Mateo, California and graduated from San Jose State University in California (USA).
Frank was a pioneer of the Children’s Learning Opportunity Center concept from 1976 – 2016 at the Wings Center in Boise, Idaho (USA) – a blend of Sports Instruction, Arts, Education, Entertainment and Outreach programs.
As a business management innovator, Frank has delivered over 1,000 presentations for a variety of Children’s Activity Center industries such as gymnastics, swimming, cheerleading, dance, martial arts/ninja and child care/education.
3rd Level Consulting is a Business Development and Service Provider Partner for private industry companies, associations, and organizations in the USA, Australia, Canada, New Zealand, Singapore, the United Kingdom, Mexico, and Panama.
Two-time recipient of the National Business Leader Award from USA Gymnastics, Frank is the author of “Building Your Business Potential” and “Designing Your Empowered Life”. He is the creator of the SmartEDGE™ Business Applications and Management Certification Courses. He is the co-founder of LEAP Learning and the MetaSpheres Corp, and is the founder and Executive Director of the International Association of Child Development Programs.
His passions include his beautiful wife Lourdes Gonzalez, family, friends, fitness training, transformational reading and travel.