Supercuts 2005 Annual Report Download - page 18

The Company has full- and part-time artistic directors who train the stylists in techniques for providing the salon services and instruct the
stylists in current styling trends. Stylist training is achieved through seminars, workshops and DVD-based programs. The Company was the
first in its industry to develop a DVD-based training system in its salons and currently has over 50 DVDs designed to enhance technical skills
of stylists.
The Company has a customer service training program to improve the interaction between employees and customers. Staff members are
trained in the proper techniques of customer greeting, telephone courtesy and professional behavior through a series of professionally designed
video tapes and instructional seminars.
The Company also provides regulatory compliance training for all its field employees. This training is designed to help supervisors and
stylists understand employee regulatory requirements and compliance with these standards.
Salon Staff Recruiting and Retention:
Recruiting quality managers and stylists is essential to the establishment and operation of successful salons. In search of salon managers,
the Company’s supervisory team recruits or develops and promotes from within those stylists that display initiative and commitment. The
Company has been and believes it will continue to be successful in recruiting capable managers and stylists. The Company believes that its
compensation structure for salon managers and stylists is competitive within the industry. Stylists benefit from the Company’s high-traffic
locations and receive a steady source of new business from walk-in customers. In addition, the Company offers a career path with the
opportunity to move into managerial and training positions within the Company.
Salon Design:
The Company’s salons are designed, built and operated in accordance with uniform standards and practices developed by the Company
based on its experience. Salon fixtures and equipment are generally uniform, allowing the Company to place large orders for these items with
attendant cost savings.
The size of the Company’s salons ranges from 500 to 5,000 square feet, with the typical salon having about 1,200 square feet. At present,
the cost to the Company of normal tenant improvements and furnishing of a new salon, including inventories, normally ranges from
approximately $30,000 to $210,000, depending on the size of the salon and the concept. Less than ten percent of all new salons fall within a
higher bracket and will cost between $200,000 and $400,000 to furnish. Of the total leasehold costs, approximately 70 percent of the cost is for
leasehold improvements and the balance is for salon fixtures, equipment and inventories.
The Company maintains its own design and real estate department, which designs and supervises the leasehold installations, furnishing
and fixturing of all new company-owned salons and certain franchise locations. The Company has developed considerable expertise in
designing salons. The design and real estate staff focuses on visual appeal, efficient use of space, cost and rapid completion times.
Salon Management Information Systems:
The Company utilizes a point-of-sale (POS) information system in all its company-owned salons which collects data daily from each
salon. The data is consolidated into several management systems maintained at the corporate office. Salon employees deposit cash receipts into
a local bank account on a daily basis. The POS system then sends the amount expected to be deposited to the corporate office, where the
amount is reconciled with local depository balances transferred into a centralized corporate bank account on a daily basis. Point-of-sale
information is also used to generate payroll information, monitor salon performance, manage salon staffing and payroll costs, and to generate
customer data for use in identifying
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