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
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