Franchise spas are a fast growing sector of the health and wellness industry and have steadily become affordable and accessible modes of self-care for middle market consumers. Recently, franchised spas are trending and it’s not difficult to understand why. No spa experience is necessary to become a franchise owner, and it’s a sound and easy business model to follow. In the past five years, the spa industry has seen unprecedented growth, and the growth track is building, which is great for investors.
I’ve gathered a list of benefits that have contributed the trending of spas in franchising.
Huge amount of opportunity for spa growth
Currently, there is a tremendous opportunity for spa franchise growth and brand development. Business is looking up! Annual research on financial signals in the spa industry predicts strong success for its future based on its 5 years of growth in revenue, according to a report commissioned by the International SPA Association (ISPA) released in September 2016.
We’re just massaging the surface at this point, so let’s get into the deep tissue of the issue of spa growth. In addition to forecasting gains in the spa industry, the annual ISPA study showed spa revenue increased by 5% to $16.3 billion from $15.5 billion between 2014 to 2015, attributed to the impressive increase in spa visits. The report estimates spa visits increased 2.1% to 179 million in 2015 from 176 million in 2014, while average revenues for each visit also rose 2.9% to $91 in 2015 from $88 the previous year. The study also showed how the industry itself was a positive addition to the US economy in 2015 through increases of full-time spa employees and new spa locations.
Consumers are equating beauty with wellness
According to the Global Wellness Summit 8 Wellness Trends for 2017 – and Beyond report, wellness is giving the idea of beauty a makeover as consumers’ overall attitudes about beauty change and they demand to both feel and look good. And why shouldn’t they want both?
Consumers are trying to achieve authentic beauty and well-being by focusing on the source of beauty through self-care methods like meditation, yoga, anti-aging and skin care products, clean eating, and exercise. A standout finding of the report was the trend of people being more in tune with what they use on their skin.
According to a 2015 skin care market report from MarketResearch.com, skin care in the US is a fast growing segment and is set to slightly exceed $10 million by 2018. People are becoming mindful of the benefits of skin care at a younger age, and the demand remains steady from aging consumers.
As consumer ideas about beauty and aging change, spas are moving to accommodate the demand for services. In response, some massage franchise spas provide related wellness services for beauty and relaxation like skin care, facials, and hair removal. In addition to in-house services, many massage franchises offer skin care products for at-home use that clear skin or smooth away signs of skin aging.
Increasing affordability and accessibility of spa services
What type of client do you picture when you think of a spa consumer? Do you see a C-suite executive relaxing or a busy soccer mom in search of a self-care break from the kids? Spa services are becoming more accessible to people of all walks of life at massage and facial franchises.
The Global Wellness Summit report mentions an increase in the number of cost accessible services and products focusing on well-being, including those available at affordable spa franchises. Franchises are making massage and facial services available at lower price points that fit middle class consumer budgets.
The report also discusses a global shift towards the idea of “fairness” and how that idea is pushing the industry of wellness to grow its reach to general consumers rather than just the wealthy. Spa services are not just luxury indulgences anymore. Rather, they are now a part of a regular consumer’s journey to achieving health and wellness through self care. You can become a key part of that journey as a franchisee in the growing spa industry!
To recap, there is a huge amount of opportunity for franchise spa growth as spa services become more accessible to mid-market consumers who are in tune with wellness and beauty. I’ve seen the effects of these industry trends first hand, and that’s why I encourage anyone interested in business ownership to consider spa franchising.
Bob McQuillan brings a unique perspective to the franchise industry. He’s not only the Vice President of Hand & Stone Massage and Facial Spa Franchise Development, but also an owner of three Hand & Stone locations with his wife Denise. Tasked with developing and expanding the franchise, Bob is one of the earliest points of contact with future owners. He conducts one-on-one webinars with qualified candidates to answer questions about the small business process. Bob is committed to working with well-qualified franchise owners to ensure their financial success in the growing health and wellness industry with Hand & Stone’s recurring revenue business model.