The Reality of Operating a Sauna and Cold Plunge Business

Lessons Learned in Our First Two Years of Business — Part Two: Operating a Sauna and Cold Plunge Business

Just over two years ago, on July 1st, 2024, Arctic Heat Retreat had its official Grand Opening. Operating a small business has been quite the whirlwind, and in this blog post I want to share what the experience has been like. I hope you find it both interesting and useful.

Early Days

During our two-month soft launch in May and June of 2024, we had plenty of positive feedback from customers trying out our sauna and cold plunge experience for the first time. As the first regulatory-approved sauna and cold plunge facility in the Fraser Valley, there was something genuinely special about watching people discover this practice. The immediate mood shift, the laughter from attempting their first cold plunge, and the look on their faces after cycling between hot and cold multiple times. Seeing people thoroughly enjoy themselves made everything that went into building this place feel worth it.

Customer volume grew steadily, and launching our monthly membership brought in regulars who still visit us to this day. People from all walks of life embraced the experience, including a local NHL player who became a regular visitor several times per week. After everything it took to get the doors open, it felt like quite the payoff.

Our first year moved along wonderfully. We were one of the few sauna and cold plunge businesses operating in the area, and things seemed like they would continue the same way into year two: consistent growth, stable revenue, and steady momentum.

To put it plainly, year two didn't go as expected. The landscape changed, and we had to change with it. What follows are our honest takeaways: the Good, the Bad, and where we're headed.

The Good

The best part about opening this business was finding success straight out of the gate. Madison and I are not marketing experts. We didn't build this facility with unlimited capital, and neither of us holds a business degree. When you open a business, you genuinely don't know what's going to happen. For all we knew, it could have been a total flop.

When the opening announcement went out, the response was immediate. People booked. Money changed hands. And the experience delivered. Customers found real value in the sauna and cold plunge cycle, and that gave us the confidence to keep going.

The second best part has been our customers. We have a continuous stream of genuinely wonderful people coming through our doors, many of whom have become both supporters and friends. Negative experiences with clients have been rare, and it seems people who enjoy sauna and cold plunge tend to be kind and considerate by nature. As an owner-operated business where Madison and I pour everything into this place, that matters more than anything.

Lastly, our first year performed well enough that we were able to upgrade our sauna entirely from revenue generated, with no new debt required. The upgraded sauna was necessary to bring the experience up to the standard we wanted, and being able to do it without borrowing money was a meaningful milestone.

The Bad

The reality for small businesses right now is that most are struggling. Small business confidence in British Columbia has fallen significantly, with rising costs and weaker consumer spending creating pressure that has tipped the scales: there are now more pessimistic business owners than optimistic ones.

We don't need statistics to feel this. Even here in Fort Langley businesses are constantly opening, closing, and pivoting. When people have less disposable income, places like Arctic Heat Retreat feel it directly. Food, housing, and gas will always come before a sauna and cold plunge session, even when we know how much it improves your quality of life.

The sauna and cold plunge industry is also facing pressures beyond the broader economic climate. For one, it is deeply seasonal. When the sun comes out in spring, business drops significantly. Some facilities close entirely between May and September. If someone opened a facility expecting consistent year-round revenue, the reality has likely been a difficult one.

On top of that, most people have zero interest in cold water. It is a genuinely hard sell. Add an increasingly crowded market, with sauna and cold plunge facilities now in virtually every city across the Lower Mainland, and the result is businesses competing harder than ever for a customer base that is still largely skeptical of the practice.

As cash flow has become more difficult to manage, we have had to adapt and optimize continuously. That same creativity that got us through the build-out has remained essential to keeping us going. A few things have insulated us from the worst of it:

• Our location in Fort Langley is a genuine asset. People don't just come here for a sauna session. They make a day of it: a meal, a coffee, a walk along the river. The town itself draws people in, and we benefit from that.
• We didn't overbuild. Our 600-square-foot facility is small by design, and our lease reflects that. We maximized the space to deliver the best possible experience without taking on costs that would crush us during slower periods.
• We kept staffing lean. Every person who works here is someone we chose carefully. That means the experience is consistently good, and the cost of staffing stays manageable.
• We didn't neglect memberships. In retrospect, I would have pushed them harder in our early days, but we have built enough of a recurring membership base to keep things relatively stable month to month.

Many businesses assume new customers will always keep coming. That assumption has not held for us. New customer volume has dropped significantly since year one, which has shifted our focus. It's now less about novelty and more about providing a ritual. Hot and cold cycling can be genuinely therapeutic, and we are working hard to help people understand that this belongs in their health routine, not just as a one-time experience.

The Future

Entering year three, we carry a lot of gratitude alongside the hard lessons. Small business ownership is difficult in ways that are hard to articulate until you are living it. Through it all, we have acquired new skills, developed resourceful creativity, and nurtured meaningful relationships with customers who have become part of our community.

Our focus moving forward is less about convincing people to try sauna and cold plunge, and more about helping them understand how transformative the practice can be. At first glance, sitting in extreme heat and then stepping into cold water doesn't appeal to most people. But do they know how they will feel after? The mood shift is immediate. The sleep that follows is deeper. And there is something about the shock of the cold that pulls you entirely into the present moment in a way that almost nothing else does.

This fall we are planning some upgrades to the facility: an added layer of privacy, more space to move between the sauna and cold plunge area, and additional seating between cycles. Madison and I are genuinely excited about these changes. Small as they may be, we believe they will have a meaningful impact on the experience for everyone who walks through our doors.

Thanks for reading, and for being part of what we're building here.

Wyatt