Spa franchise Hand & Stone continues to expand since moving corporate offices in Hamilton

By Mike Davis/The Times 
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on February 16, 2014 at 7:10 AM

HAMILTON — They started out in towns near the Jersey Shore, small day spas offering massages to people on the go.

Within a few years, they’d become hot spots in the New York and Philadelphia markets.

Now, there are nearly 150 Hand & Stone locations throughout the United States and Canada. Like many other businesses looking to spread their name far and wide, Hand & Stone operates as a franchise business, allowing individual investors to own and operate one or more stores.

“Using a franchise model for development of a brand is tremendous for a business with low capital,” Hand & Stone president and chief executive officer Todd Leff said last week. “You have franchisees use their capital to help grow the distribution and breadth of the brand.”

“And of course, they profit from that. It’s their own business,” Leff said.

In 2005, chief operating officer John Marco founded Hand & Stone in Toms River after years as a physical therapist. Within five years, the business expanded to more than 40 franchise locations and has more than tripled that number since then, operating 145 locations.

Leff, who became CEO in 2010 after working as CEO for Cottman and AAMCO Transmissions, attributed the success to a changing business model to attract a changing customer base. As the job market went south, Leff said, the company switched from a long-term membership contract to smaller month-to-month commitments and began offering simple day services, such as facials and waxing. Facials quickly became the fastest growing sector of Hand & Stone’s business, Leff said.

“We positioned the brand as a health and wellness business,” Leff said. “People wouldn’t spend $2,000 or $3,000 on a vacation where they could get a massage, but they might spend $50 or $60 on health and wellness. We had to make adjustments.”

Continued strategic growth is the goal in the future, Leff said. He projected between 50 and 60 new spas to open up each year but only with thoroughly vetted franchisees and in areas prime for growth.

New Jersey has been one of the fastest growing markets for Hand & Stone, which hit more than $90 million in sales in 2013, but the brand also has taken off in Houston, Dallas, Denver and south Florida.

But it takes a lot of scouting before opening up in new markets, Leff said. For example, before committing to bringing Hand & Stone to the Atlanta area, the company will seek a franchisee willing to open between five and 10 locations. With multiple locations, the company can advertise on television and ensure viewers have a Hand & Stone within driving distance.

“It’s hard to support locations that are far out in the field and we need to have a concentration of stores in any given TV market,” Leff said.

In 2015, the business could grow even more with the help of a $10 million “franchise fund” from Benetrends, a firm that provides loans and consults with small business owners on how to develop or expand their business and how to fund it.

The “franchise funding” will streamline the process for franchisees looking to open a Hand & Stone location, having already pre-approved the Hand & Stone product and business model.

“One of the biggest concerns of people deciding whether to buy a franchise is having sufficient capital and getting funded,” Leff said.

“This takes a lot of the worry away from them. If the candidate meets some pretty objective requirements, they’re basically guaranteed funding. That takes a lot of the guesswork out of the process and a lot of fear away from the franchisees.”

Contact Mike Davis at (609) 989-5708 or mdavis@njtimes.com.

http://www.nj.com/mercer/index.ssf/2014/02/spa_franchise_hand_stone_continues_to_expand_since_moving_corporate_offices_in_hamilton.html 

Hand & Stone Featured in The Trentonian

Hand & Stone was recently featured in an article in The Trentonian titled, "Hamilton-based Hand & Stone Spa Thriving." The article focuses on the tremendous growth of the Hand & Stone franchise over the past few years. CEO Todd Leff discusses the unprecedented growth of the massage and facial spa during 2012, its double digit growth, and the 97 Hand & Stone locations now open across the country.

"The downturn in the economy caused many industries to lose their financial ground, causing deep cuts into revenue streams and high unemployment rates. But there is one industry that continued to thrive despite the dismal days of economic slumber. An enterprising business focused on health, well-being and that which was once designated only for the rich, is now affordable, accessible and growing; and, the Hand & Stone Spa is a perfect example of bringing luxury to the masses.

'For $50 you can escape for an hour with a massage or a facial,' said Todd Leff, the Chief Executive Officer of Hand & Stone. 'Some cannot invest in a big grand vacation right now, but people have fifty bucks to invest into their health and well-being, and it is convenient and affordable.'"

To read the entire article, click here.

Hand & Stone featured in Coloradobiz

Hand & Stone was recently featured in the Coloradobiz in an article entitled "Hand & Stone, Waxing the City, in the Business of TLC." Coloradobiz reporter Michelle Davenport spoke with Hand & Stone owner and regional developer Erik Bostrom about the growth of the massage industry and of his business, Hand & Stone.  Despite recent economic woes, there’s one thing people aren’t giving up on, themselves.  The strength of the industry is a reason why entrepreneurs are diving in and Bostrom is helping them fuel their entrepreneurial spirit in this industry. Click here to view the entire article.

Hand & Stone, Waxing the City, in the Business of TLC

By: Michelle Davenport

The massage industry has seen 15 percent growth over the past three years and now generates annual sales of $12 billion. The skin care industry is also made its beauty mark, generating $18.7 billion in revenues in 2007 and projected to grow by 40 percent next year.

Erik Bostrom, owner of Hand and Stone in Highlands Ranch and Colorado's regional franchise developer, is capitalizing on the growth of the spa industry. Hand and Stone is a full-service day spa, and Bostrom's location features 10 treatment rooms in a 3,000-square-foot facility.

"One of the real benefits we have with Hand and Stone is really delivering world-class spa services conveniently," Bostrom said. "We have very affordable programs. Most of our clients see us monthly, and it's less than $50 a month."

(Read More)

Hand & Stone featured in Mission Viejo Patch

Hand & Stone was recently featured in Mission Viejo Patch entitled "Hand & Stone Massage Mission Viejo Tripled Staff in 7 Months." Reporter Peter Schelden spoke with Hand & Stone franchisee Shahira Raineri about how she has been able to grow her business so quickly with Hand & Stone. Shahira also discusses her entrepreneurial journey which has led to her becoming a Hand & Stone business owner in Mission Viejo and Tustin. She references tools like Yelp and the local city as resources to helping her grow. Click here to read the full article.

Hand & Stone Massage Mission Viejo Tripled Staff in 7 Months

By: Peter Schelden

When it opened its first California location in December in Mission Viejo, Hand and Stone had 12 employees. Owner Shahira Raineri says she has now tripled that number and is going strong.

"OK, we're going to move 3,000 miles—it sounds crazy now that I'm saying it—and we're going to put our spa in Mission Viejo."

That's Shahira Raineri, owner of Hand and Stone, describing her decision to move out West from New Jersey and start her first business.

Hand and Stone opened last December. Back then, the business had 12 employees. In seven months, the staff has tripled, and a new location has been opened in Tustin.

(Read More)

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.”