The company was formed in 1999 and has been a franchise since 2013. It’s 150 salons, 120 of which are franchised, are present in Poland, Ukraine, Kazakhstan, Czechia, Germany, Spain and the Netherlands. The company reports that its salons serve approximately 350,000 clients each month. All franchisees own at least 2 Haircut Express salons and three of the wonders have more than ten each.
Location and automation are the key
The company stakes great store on location. Since it does not, as a matter of policy, have a system of appointments, the location needs to be in busy shopping malls. The company admits that this is a business concept for cities with a population of 150,000+.
The salons don’t employ receptionists. Self-service terminals are used instead with the help of which the clients order a service and pay a standard charge for the service ordered. . The software used helps both clients and the employed hairdressers who log in and out when coming and leaving work.
The hairdressers work station clean-up and tool sterilization process is carried out with specifically developed technology which saves hair stylist’s time and energy. Therefore, due to the companies very own patented haircut techniques and systems, Haircut Express can provide fast and high-quality services, while reducing overheads.
According to Irina Pohodina, the Ukrainian owner of Haircut Express,this system makes management easier."This digitalisation of client services makes remote management relatively easy, saving both time and money. It also helps to ensure that a manager only has to spend a few hours a day on management functions. In the first year of operation we estimate it takes 10 days a month to manage, and that goes down to 5-6 in following years” Pohodina told portal Franchising.pl.
The services offered are limited to cutting, styling and colouring to ensure that no single service takes too long. The company takes the word “express” seriously because speed is an essential ingredient in the mix. Every customer of Haircut Express is guaranteed that their service will begin within 15 minutes of them entering the salon.
The company estimates that around 80% of its clientele are returnees so it operates a loyalty program. It also caters for families with a kids zone for their haircuts.
A proven business model
The visibility and recognition of the Haircut Express brand gives any salon owner a head start. The franchisee also gets the salon equipped to the company’s standard, the software for the system, individual design for each salon, staff training and help with both recruitment and marketing. Being part of a network gives the franchisees the synergy of sharing experience with 30 of the existing franchisees.
Haircut Express operates in a market where demand is relatively stable. It is not a luxury item or an innovative service for which demand is yet to be proved. Only something like a pandemic can genuinely hit the size of the actual market.
The cost of the franchise includes a one-off franchise fee of just over 5,000 Euro, plus the costs of renting 40-60 sq. meters of space, renovation costs estimated at around 150 Euro per sq. meter, 15,000 Euro for the equipping and furnishing the salon and an initial outlay of around 3,000 Euro on cosmetics and advertising. The company estimates that in total just over 30,000 Euro is the sum needed to have a functioning salon.
The monthly franchise charges that are made once a salon is operational are 5 percent of net turnover plus150 EUR for software and marketing.
According to the company’s business model the salon is able to cover its expenses and staff costs. During the first year of operation the expected monthly profit is in the region of four to 6,000 Euro. The return of the outlay costs can be expected in a period of 18-24 months.
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