The hair care industry is a $50 billion annual business in the U.S. Seems as though there’s a hair cutting niche for every type of American. There are salons for guys, gals, kids, even pets. It’s a highly fragmented industry composed of mom-and-pop shops as well as franchise operations. And in 2006, it continues to be a strong area for franchising.
The list of franchise possibilities is long, and includes Great Clips, Pro-Cuts, and Sport Clips, to name just a few. The biggest player, with nearly 11,000 salons in North America, is Regis Corp., with its Regis Salons, MasterCuts, Trade Secret, Supercuts, Cost Cutters, and SmartStyle brands in the U.S., and First Choice Haircutters and Magicuts in Canada. So what do they offer, and what makes them unique?
Consider Doug Barnes. He operates 15 Cost Cutters stores located inside Wal-Mart Supercenters throughout Nebraska and Iowa. His thinking is that the next time Dad goes out to buy a new deck chair, some light bulbs, a shower curtain, or trash bags, he may be inclined to slip in a quick haircut.
“The Wal-Mart locations offer us built-in traffic and are a perfect match for our clientele, the cost- and value-sensitive buyer,” says Barnes. He says most of Cost Cutters’ customers are walk-ins, which works very well inside a crowded, frequently visited Wal-Mart.
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