Hand & Stone Massage CEO Links Skincare to Sales Growth
Though it’s smaller in unit count by nearly 900 than the industry giant that is Massage Envy, Hand & Stone Massage and Facial Spa leads the segment in sales growth percentage for 2016.
Hand & Stone’s 23.4 percent sales increase to $250 million moves the Trevose, Pennsylvania-based concept up to No. 223 on the Franchise Times Top 200+ ranking, a jump of 22 spots for the brand with 307 locations. Like many CEOs we interview for the annual Top 200+, Todd Leff doesn’t attribute that growth to any single thing Hand & Stone did in 2016 but rather a combination of things in the works in recent years.
“We opened 27 net new units last year and in addition the mature stores comped over 20 percent,” said Leff. “So there’s that combination.”
The launch of skincare services in 2010 also continues to provide steady sales increases for franchises.
“It’s really come down to us focusing on skincare. We derive a greater portion of our revenue—30 percent in 2016—from skincare than Massage Envy,” said Leff. “Massage Envy hasn’t been able to develop those services like we have.”
Support for franchisees is another key focus, so they in turn can focus more on the customer experience. Leff said that philosophy is put into practice through on-site operations support, complete business reviews and use of a 360-degree consumer feedback system through customer insights provider Service Management Group. Hand & Stone also launched a business intelligence tool for franchisees in 2016 that allows them to see the numbers from other franchise locations and create their own benchmarks.
Leff noted it’s validation for the concept that 62 percent of the system is owned by multi-unit ‘zees and that number is growing.