Hand & Stone Expands Skin Care Service and Products with Dermalogica

Hand in hand with its mission to begin aggressive nationwide expansion, Hand & Stone Massage and Facial Spa stays at the top of the game by adding not only locations but new products to keep the brand fresh and to give consumers more reasons to keep coming back. Most recently, Hand & Stone began distributing Dermalogica, a 25-year old professional skin care line free of common irritants and ingredients that improves skin health, at its spa locations nationwide.

Hand & Stone researched Dermalogica intensely to ensure it was the right fit to carry at their spas nationwide. What they discovered was a perfect match as both brands were founded on the belief that massage and skin care is not about pampering or luxury, but rather about the health benefits associated with them.

“We had been examining skin care product lines closely for the past several years,” said Todd Leff, CEO of Hand & Stone. “The addition of facials and waxing to the services roster at Hand & Stone as well as growth in massage has boosted the average comparable store sales by over 40 percent during this past year, in a very tough economic environment. We see this category only increasing in years to come and needed the right skin care line for our spas. Dermalogica comprises everything we were looking for.”

Dermalogica has grown to a worldwide brand with a cult-like following among professional skin therapists and consumers alike due to its no-nonsense skin care that helped it grow from a modest store-front in Marina del Rey to today’s 145,000 square foot global headquarters in Carson, California.

Hand & Stone believes that Dermalogica will create exceptional brand awareness for its skin care services including facials and microdermabrasion while its revolutionary hot stone massage therapy is getting consumers in the door and its membership model is keeping them coming back.

While the typical massage client used to have to track down a freelance massage therapist schedule an appointment days in advance, and pay over $100 for a one-hour treatment, most Hand & Stone clients book their appointments on the same day as service and pay 30 percent less than the traditional hourly rate. Better yet, when they sign up for a one-session-per-month plan, they end up paying just $49 per visit.

“We are revolutionizing how consumers approach massage and facial services. Instead of considering them a luxury, we are working to show consumers the health benefits involved, from anti-aging benefits to stress reduction, pain relief and much more,” Leff said.

Massage Industry Poised for Rapid Growth in 2011; Hand & Stone Sets Eye on 40 New Spas

Hand & Stone Massage and Facial Spa Rub Out the Line Between Health Care and Luxury

When Todd Leff took the reins to fuel growth for Hand & Stone in 2010, he was fast out of the gate. Hand & Stone opened 12 new locations last year and awarded 28 more totaling 40 locations. In 2010, Hand & Stone marked its name across several cities in its home state of New Jersey and entered new territories nationwide including Missouri, California, and Illinois.

In 2011, Hand & Stone is launching an aggressive growth strategy for 40 new locations in accordance with the growing industry. According to the 2010 AMTA Industry Report, massage use among 18-24 year olds has risen to 48%; massage use among older Baby Boomers (ages 55-64) has doubled in the past ten years and use among those older than 65 has tripled during the same time.

Hand & Stone stayed ahead of the curve in 2010 by giving consumers what they want in a massage and facial spa concept including increasing facial and waxing services at their locations. That strategy has proven to be successful, as the average mature store sales have boosted by over 29 percent in 2010, in a very tough economic environment.

While consumers are relaxed, even de-stressed by the mainstreaming of massage, Hand & Stone is taking this change to the bank. Launched in 2005 by John Marco, a physical therapist with 20 years of experience, Hand & Stone says its mission is to bring massage therapy to the masses. Clients enjoy the treatment, but "most aren't just coming for the indulgence," said Todd Leff, chief executive and president of Hand & Stone. "They're coming for stress reduction and pain relief, and many on the suggestion of their doctors."

While the typical massage client used to have to track down a freelance massage therapist, schedule an appointment days in advance, and pay over $100 for a one-hour treatment, most Hand & Stone clients book their appointments on the same day as service and pay 30 percent less than the traditional hourly rate. Better yet, when they sign up for a one-session-per-month plan, they end up paying just $49 per visit.

The average customer isn't a wealthy socialite with nothing better to do, she's a 42-year-old female with an annual household income of $65,000, has children and loves to shop at Target and Kohls. With that busy, overscheduled lifestyle it’s not surprising that the number one reason clients visit Hand and Stone is for stress reduction. Hand & Stone's clientele is roughly 70 percent female, 30 percent male, with an increasing number of male patrons.

Todd Leff, 51, invested in and became president of Hand & Stone in July of 2009 after a brief attempt at retirement. Having worked in franchising for over 20 years, first growing Cottman Transmission, then leading the merger between Cottman and its main rival, AAMCO, Leff sold his stake in the then 1,100-unit franchise and decided to play golf and relish in his success. That lasted all of three months before he was itching to get back in the game.

"I started looking for a young franchise in an industry that had tailwinds," says Leff. "I figured I could build a management team, implement some larger company processes and take it to the next level."

Leff expects to sign another 50 new franchisees to the Hand & Stone system this year, each one investing a total of around $325,000, including franchise fees, to outfit a suburban, strip-mall location with space for at least 10 massage rooms.5

"Most of our franchisees have no massage experience, they are just business people who understand that this industry is ripe for growth and love the fact that we are providing a positive health related service," Leff said. "Twenty-two percent of Americans got a massage last year, and that figure is growing. As massage becomes a more integrated part of health care, we see this business achieving even wider-spread growth and longevity."9

Hand and Stone featured in The Times of Trenton

Hand and Stone was recently featured in an article in The Times of Trenton. In the article, Kevin McArdle talks all about his new Hand & Stone spa that he opened in Princeton in December. McArdle shares his entrepreneurial story and talks about why he decided to become a Hand & Stone franchise owner after years toiling away in the corporate world, how many jobs it will bring to the community, and how many additional locations he plans to open in the future. He also talks about how he plans to use his new spa to appeal to a broader male audience. Todd Leff discusses the franchise from a corporate perspective, and weighs in on growth and development plans in the region. Click here to view the article in its entirety.

Franchise of a peaceful and gentler kind
By Rich Bockmann

Princeton- After Kevin McArdle lost his job in 2008 due to downsizing, he did some freelance work as public relations consultant, and considered opening his own consulting firm.

But after 25 years working in Corporate America - seven years as the head of the communications department of Harleysville Insurance - he started to give serious thought to purchasing his own franchise.

(Read More)

Hand and Stone featured in the OC Metro

Hand and Stone was featured in an article in the OC Metro, an Orange County business publication, called “Hand & Stone Massage and Facial Spa expands in O.C.”, which published yesterday, January 17. The article focuses on Shahira Raineri's expansion to the west coast, and her grand opening on January 28 at Mission Viejo. Click here to view the entire article.

Hand and Stone Massage and Facial expands in the O.C.
by CAITLIN ADAMS

Hand & Stone Massage and Facial Spa, a New Jersey-based corporation, is opening its second store in Orange County next month at The Market Place in Tustin.

The day spa’s first O.C. location debuted last month in Mission Viejo, and company officials are holding a grand opening event celebrating the launch on Jan. 28. Attendees will also be able to enjoy 10-minute sample spa services.

(Read More)

Hand and Stone featured in BusinessNewsDaily

Hand and Stone was featured in an article in the BusinessNewsDaily entitled, “Minority Business Owners Carve Out Equal Opportunities,” which published yesterday, January 17, 2011. The article was written by Cynthia Bunting and built from several interviews, including one with California’s first Hand & Stone franchisee and Area Developer, Shahira Raineri, who weighs in on what it means to be a minority business owner, from a firsthand perspective. Shahira Raineri's contribution to the article is below.

Minority Business Owners Carve Out Equal Opportunities
By CYNTHIA BUNTING

Martin Luther King Jr. Day is a day to remember the impact King had on precipitating change and fighting for equality in America. While images of King often show him marching or delivering his famous “I Have a Dream” speech, the lasting changes his efforts delivered are also playing out today in schools, neighborhoods and boardrooms across America.

King's efforts helped to pave the way for those who later fought to create opportunity for themselves — including women and individuals of all races, sexual orientations and other groups struggling for equal rights. In some cases, that equal opportunity includes the dream of owning their own businesses.

BusinessNewsDaily asked small business owners who consider themselves to be members of a minority group to share their thoughts about how who they are has affected their businesses.

I do define myself as a minority business owner. I continued to be frustrated by how my darker skin and eyes seemed to overshadow my know-how and intelligence. But I learned how to work with this stigma and used it to surround myself by people who value diversity and recognize that differing and various perspectives make for a much more successful workplace. I also learned that being a woman meant that I had to work much harder, much longer, much smarter. A minority business ownership will be what you make it. If you set out thinking that the world may have become more hospitable, then you might overlook a bunch of traps or people that could be trying to take advantage. If on the other hand, you set out to be successful with a mindset that you will be successful because you have the skills and leadership qualities to overcome inhospitable people or circumstances, then you will triumph! Here's to it!
- Shahira Raineri, handandstone.com.