Pandemic-forced changes help martial arts schools fight new economic threats
As a martial artist, Kera Radke doesn't back down from challenges. But when the pandemic delivered a sucker punch, she needed a new fighting technique to stay in business.
Radke, chief instructor at Lake Zurich Family Martial Arts in Lake Zurich, scrambled to keep her school afloat through impromptu lessons in money and crisis management. And while the pandemic's threat to in-person martial arts training has faded, the changes Radke made four years ago are now helping her navigate different economic threats.
"Inflation is a real thing. We want to make sure our bank account has a cushion," Radke said. "If something else were to happen again, we owe it to our students to be financially stable."
The lockdown in 2020 was a watershed moment for the martial arts community. Overnight, a centuries-old practice of in-person training went out the window, and most school owners were caught flat-footed, forced to temporarily shut down their centers.
Self-defense and martial arts are better taught in person, and studios didn't have backup plans to ensure business continuity. Many schools never reopened, while others established patchwork online training programs to retain students and pay rent.
Lake Zurich Family Martial Arts was founded 30 years ago and later acquired by Radke and her partner, Ted Huelsman.
The school set up online lessons after shutting in-person classes in March 2020. The owners stopped paying themselves and kept staff on payroll during the lockdown. They invested in equipment such as $400 kicking bags and smartphones for staff to teach online.
"That was really important to us because they supported us," Radke said. "It was unbelievable what our instructors would do. Kids were hurting; they were not getting any socialization."
Radke relied on the school's accountant to make business projections without getting bogged down in day-to-day operations. A people-first approach and the targeted investments made during the pandemic are now keeping the school going amid rising costs.
After reopening, class fees went up 20% to cover rising operating costs and inflation. The school is charging "what's appropriate for the value of classes it offers," Radke said. "For retention, we are increasing the quality of our services and expanding our abilities with professional development and focus on student satisfaction."
The pandemic had cut her student count by 50%, but it's now back to its pre-pandemic level of about 200.
"I still offer the virtual option. Believe it or not, we're still hybrid. I always have my Zoom camera on during class, but rarely will someone tune in virtually anymore," she said.
Rising business costs
Martial arts instructors Kyren Epperson and Amy Jones seized an opportunity to start Culture of Safety Dojo & Wellness Center, a karate school in Rogers Park, during the pandemic.
"Everyone who had a space was hit hard," Epperson said. "We had the advantage of starting on the ground floor without space needs and gradually building up equipment and other essentials."
Eight kids and two adults attended Culture of Safety's first class in July 2020 at Warren Park. The partners took out loans and tightened purse strings to grow the business, eventually opening a space at 6961 N. Clark St. in September 2022.
They acquired used equipment via donations and from schools that shut down. They saved on software by running numbers on spreadsheets and learned social media marketing on the go.
"I don't have the impression that we're as impacted by inflation right now as we are by the fact that we're still a relatively new business," Epperson said.
Their do-it-yourself growth strategy paid dividends. Class attendance grew organically, and they have about 70 students.
"At least three or four kids from day one are still here with us four years later," Jones said.
The school, which focuses on equality, empowerment and healthy living, nearly doubled its fees to combat rising costs. In 2020, the school charged $50 a month. Now, it has a sliding rate of $95 to $150 for individuals. It offers financial aid to students requiring a safe space or without financial means, especially from low-income and immigrant communities around Rogers Park.
"Our goal is not to become rich, but to enhance the community through this work that we love and earn a living while doing so. Once you're here, you get to stay. We will find a way to make it work," Epperson said.
Sherry Roche, a Scottsdale, Arizona-based martial arts expert and seventh-degree black belt in taekwondo, said smart school owners incorporating post-pandemic learnings into their business will thrive. Virtual training will also evolve, and instructors need to take it seriously, especially if it helps cut operational costs.
"Instructors can do virtual classes, virtual judging, seminars and virtual tournaments. People are comfortable doing that virtually, and it knocks out some of that travel time," Roche said.
Staying offline
Instructors who believe martial arts is a social sport opted out of online training and waited for students to return to class like Jane Dillon, who runs Legacy Martial Arts in Sterling.
"While we were closed, I did not do any remote training. I did a book club. ... I am very passionate about reading and encouraging kids to read," Dillon said.
Before the pandemic, she focused on business growth and had 75 students. After seeing people struggle during the pandemic, health and wellness factored higher in her goals. Legacy reopened in August 2020 with about 30 students and has stayed at that level since.
The goodwill of repeat customers has helped, with senior students filling in to teach classes in exchange for additional training for tournaments and events.
"The barter system is fabulous. Hiring and staffing is something I would have had to spend money on. Even if I'm giving more away in a barter, I'm good with it," Dillon, a national taekwondo champion, said.
She charges $85 a month for unlimited classes — inexpensive compared to nearby schools that can charge over $100 for one to two weekly classes. She draws enough revenue to keep the doors open and turn a small profit.
"I pride myself on keeping our prices low, both because I recognize that this area is more blue-collar and fewer people can afford high prices," Dillon said.
She simplified the company's finances, partially by cutting payroll and operation costs, and has no debt.
"I am also in the very fortunate position to own my building outright. I don't have rent; I don't have a mortgage," Dillon said.
Branko Milosevic, owner of Northside Brazilian Jiu Jitsu in Irving Park, also didn't offer online classes and used the lockdown as an opportunity to upgrade equipment.
He said adult students quickly returned, but kids classes filled up slower. Martial arts schools typically struggle to retain kids, who are easily distracted and often switch between sports.
"I think people wanted to get out of the house and jump into some activity after the pandemic was over," Milosevic said. "We lost almost all the kids and got replenished by a completely new group."
Now, Milosevic worries more about the economy. He's increased class prices to cover rising expenses like software, which grew 30%, and other items such as equipment and maintenance.
"The economy's not doing great, and people do not have money to train. I think that is a bigger problem in the long run than the pandemic," he said.