Monday, February 7, 2011

Alternative Medicine Becomes Mainstream: Spa Franchise Provides Massage For The Masses

Hand & Stone Opens Doors in St. Louis; To Relax, Rejuvenate Community with Top-Tier, Cost Efficient Model

Looking to double its store count nationwide by the end of 2011, Hand & Stone Massage and Facial Spa will open its first location of the year in the St. Louis suburb of Des Pere, at 1070-1074 N. Ballas Road on February 7.

“We see the St. Louis metro area as a prime market for our brand’s development,” said Todd Leff, CEO and President of Hand & Stone. “We are pleased to have Christy and Tony Burke join our system and lead our brand with top-tier services and integrity in the St. Louis area.”

Proving that massage therapy isn't just for the rich and famous anymore, the new Hand & Stone will erase what once was considered a penchant of the affluent by offering services to all consumers.

“Tony and I are thrilled about opening this spa together. Our future customers will love the upscale look and feel of our spa at a fraction of the cost,” said Des Peres franchisee Christy Burke. “Not only will they enjoy the relaxation time at Hand & Stone, but they will soon realize the health benefits of regular massage use too.”

Local residents of the St. Louis metro region, collectively Christy and Tony Burke have years of experience in management and business ownership, so while they recognize the difficulty of opening a business in this economy, they’re ready for the challenge. The Burkes don’t plan on just stopping at one location in the area, their future plans call for another four to five locations over the next several years with every member of their family contributing to the new spa’s success including their four children.

Launched in 2005 by John Marco, a physical therapist with 20 years of experience, Hand & Stone’s mission is to bring massage therapy to the masses. Clients enjoy the treatment, but "most aren't just coming for the indulgence," Leff said. "They're coming for stress reduction and pain relief, and many on the suggestion of their doctors."

Under the new provisions of the recently-passed health care bill, alternative medical procedures, including massages from licensed therapists at spas like Hand & Stone, are being taken more seriously by the traditional medical community. According to Leff, about 75 percent of health savings account plans and HMOs will now reimburse patients for massage therapy if their doctor writes a formal prescription. Ailments worthy of that prescription include muscle and joint pain, Temporomandibular Joint Disorder (commonly known as TMJ), and stress. According to the 2010 AMTA Industry Report 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 that same time.

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 around $60 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.

As massage spas become more mainstream in the health care industry, Hand & Stone stays at the top of the game by adding locations and services to keep the brand fresh. That strategy has proven to be successful, as the addition of facials and waxing to the services roster has boosted the average comparable store sales by over 40 percent during this past year, in a very tough economic environment. After awarding a record 40 new franchises in 2010, 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.

"Twenty-two percent of Americans got a massage in 2009, 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," said Leff.

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