Hand & Stone Rides Wave of Massage Industry Growth

Massage and facial spa franchise experiences surge in sales, membership base

There can be no doubt that the past year has been one of the most stressful for American families. That may be why as Americans pull themselves out of the trenches of a battered economy and many industries remain flat in growth, the massage industry is consistently attracting more customers. Hand & Stone Massage and Facial Spa, a massage and facial spa chain that has aggressively expanded during the past year, has benefited from the industry surge with growth in sales, its membership base and geographical footprint.

Since Jan. 1, sales at Hand & Stone spas open for 24 or more months have been up 36 percent, with its membership base growing by 27 percent. By expanding its service lines to facials in 2010 in addition to massage, the spa chain’s product sales and facial services have increased by 41 percent so far in 2011. First-time customer traffic has increased by 40 percent over the past year, demonstrating that the concept is attracting first-time spa goers.

“What we’re seeing is a rapid growth in our business,” said Todd Leff, president and chief executive of Hand & Stone. “Not only are experienced spa goers looking for affordable massage and facial services for the health and wellness benefits, but more people who have never tried massage are now visiting spas. Our mission of making spa services more convenient and more affordable for the middle market has struck a chord with consumers.”

Aside from attracting additional customers, Hand & Stone is quickly growing its footprint through franchising. Opening 12 new locations in 2010, the chain has added nine spas so far this year and will open 20 more before 2012. By opening a massage and facial spa through franchising, executives and managers who have lost their jobs or have been underemployed throughout the downturn are having success as first-time business owners.

“Our franchisees are mothers, fathers, former corporate executives, people who were laid off during the recession — they’re people with varied backgrounds and experiences,” Leff said. “But what brings them together is a desire to have something for their own in an industry that improves consumers’ health and wellness. With the growth we’re seeing for this business model — growth that is expected to continue — people from all walks are seeing that this is a wise business decision.”