Red Diamond Yoga is a 3,800 square foot boutique yoga studio located in the Palms community of West Los Angeles. Launched in 2013 by Arlene Utal and Sheryl Utal, the mother-daughter duo have constructed a community at Red Diamond Yoga that is well-known for having a friendly and welcoming atmosphere.
Red Diamond Yoga offers over 50 classes weekly, varying in style and level of difficulty. Most of the classes are Vinyasa-style including basics, Level 1/2, and strong flow. Additional classes offered include pregnancy yoga, yoga sculpt (with weights), yin yoga, stretch classes, fusion classes, and monthly sound healing. The studio is widely known as a hub for teacher trainings, specialty workshops, and for international teachers visiting the Los Angeles market.
According to a 2016 Forbes article, yoga is practiced by nearly 37 million people in the US, nearly double the number measured just three years prior.
The quality of instruction across all classes is held to exceedingly high standards in an effort to ensure an enjoyable and transformational experience for the students. Red Diamond Yoga has developed a process and set of teaching standards which include an emphasis on safety, alignment, anatomy, and philosophy to help facilitate inner peace, physical fitness, and spiritual growth. Students can rely on consistency, quality and structure with the entire yoga program. This provides tremendous value to members since they know they can take any class and can count on the same exceptional experience.
Rooms are kept at 82 degrees (unlike hot yoga which is practiced in 105 degrees or more) which makes the classes much more accessible, safe, and enjoyable. Students are able to generate their own internal heat for increased physical benefits, without the risk of overheating.
The facility includes several practice rooms, separate men’s and women’s locker rooms (including high-end digital locks), a retail area, and a shower area.
Income from student memberships and classes make up the studio’s primary revenue driver, while workshops and teacher trainings are a secondary stream. The studio's retail shop and studio rentals represent a significant opportunity for additional growth.
The schedule offers over 50 classes weekly, catering to all levels and abilities. Approximately 60% of purchases are made online through the studio’s reservation system. Students are able to purchase classes, workshops, and teacher training directly through the self-service platform.
Relationships with third-party booking platforms such as ClassPass and Zenrez also contribute several hundred students monthly, providing an additional revenue source and exposure for the business.
Red Diamond Yoga offers a variety of pricing options for students to choose from depending on their needs. Students can purchase single classes, class bundles (8, 12, and 16 class packages), monthly memberships (1, 3, 6, and 12 months prepaid), and yearly contracts.
Red Diamond Yoga also offers first-time students 10 consecutive days of unlimited yoga for $10, which brings many new students to the studio. This campaign is being aggressively marketed to convert new students into monthly members.
The retail store within the studio sells yoga apparel, mats, candles, and jewelry. Refreshments such as water, fresh juices and small food items are also available for purchase.
In addition to Arlene and Sheryl, Red Diamond Yoga has approximately 20 instructors and six part-time staff on the team. The studio is also staffed through a community program that allows members to trade-in-kind for class sessions by putting in service hours at Red Diamond. Participants contribute four hours of service at the front desk per week. Approximately 15 members participate in the program at any given time.
Monthly expenses such as rent, utilities, and insurance are relatively fixed, and instructors operate as independent contractors and are paid a flat fee per class. Therefore, additional revenues contribute directly to the business’s bottom line.
Red Diamond Yoga is located in the Palms community of Los Angeles (3500 Overland Avenue, Suite 210, Los Angeles, California 90034), a neighborhood in the Westside region of Los Angeles County.
Within a one-mile radius of Red Diamond, median income is approximately 130% higher than the national average and average expenditures is approximately 113% greater than the national average. (Piinpoint)
The blue flag in the map below indicates Red Diamond Yoga’s location. The yellow flags indicate other fitness studios in the surrounding areas. There is limited competition for Red Diamond, given there are only a few other yoga or pilates studios in the Palms, Mar Vista and Cheviot Hills neighborhoods.
Fitness studios in the area
The Westside is made up of the neighborhoods of Los Angeles City and other cities immediately west of La Cienega Boulevard to the Pacific Ocean. Hollywood and Mid-Wilshire are on the eastern boarder of the Westside. The northern boundary is the Santa Monica Mountains and the southern boundary is often considered either LAX or the 105 Freeway, separating the Westside from the South Bay.
West LA is approximately 101 square miles, divided into 23 neighborhoods. The Palms community is the densest neighborhood within the Westside (and one of the most diverse) and is one of the densest in all of Los Angeles. There is a population of approximately 60,000 within one square mile. Within 3 square miles there is a population of approximately 350,000.