Supercuts 2011 Annual Report Download - page 15

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Table of Contents
The average initial capital investment required for a new Regis Salon is approximately $190,000 to $240,000, excluding average opening
inventory costs of approximately $18,900. Average annual salon revenues in a Regis Salon which has been open five years or more are
approximately $400,000.
MasterCuts. MasterCuts is a full service, mall based salon group which focuses on the walk-in consumer (no appointment necessary)
that demands moderately priced hair care services. MasterCuts salons emphasize quality hair care services, affordable prices and time saving
services for the entire family. These salons offer a full range of custom styling, cutting, hair coloring and waving services as well as professional
hair care products. The customer mix at MasterCuts is split relatively evenly between men and women. Service revenues compose approximately
81 percent of the concept's total revenues. The average ticket was approximately $22 and $21 for fiscal years 2011 and 2010, respectively.
The average initial capital investment required for a new MasterCuts salon is approximately $125,000 to $175,000, excluding average
opening inventory costs of approximately $14,600. Average annual salon revenues in a MasterCuts salon which has been open five years or
more are approximately $277,000.
SmartStyle. The SmartStyle salons share many operating characteristics of the Company's other salon concepts; however, they are
located exclusively in Walmart Supercenters. SmartStyle has a walk-in customer base, pricing is promotional and services are focused on the
family. These salons offer a full range of custom styling, cutting, hair coloring and waving services, as well as professional hair care products.
The customer mix at SmartStyle Salons is approximately 76 percent women. Professional retail product sales contribute considerably to overall
revenues at approximately 33 percent. Additionally, the Company has 120 franchise salons located in Walmart Supercenters. The average ticket
was approximately $21 and $20 for fiscal years 2011 and 2010, respectively.
The average initial capital investment required for a new SmartStyle salon is approximately $35,000 to $45,000, excluding average opening
inventory costs of approximately $12,700. Average annual salon revenues in a SmartStyle salon which has been open five years or more are
approximately $244,000.
Strip Center Salons. The Company's Strip Center Salons are comprised of company-owned and franchise salons operating in strip
centers across North America under the following concepts:
Supercuts. The Supercuts concept provides consistent, high quality hair care services and professional products to its customers at
convenient times and locations and at a reasonable price. This concept appeals to men, women and children, although male customers account
for approximately 66 percent of the customer mix. Service revenues represent approximately 89 percent of total company-owned Supercuts
revenues. The average ticket was approximately $17 for fiscal years 2011 and 2010.
The average initial capital investment required for a new Supercuts salon is approximately $75,000 to $100,000, excluding average opening
inventory costs of approximately $7,600. Average annual salon revenues in a company-owned Supercuts salon which has been open five years
or more are approximately $269,000.
The Supercuts franchise salons provide consistent, high quality hair care services and professional products to customers at convenient
times and locations and at a reasonable price. These Supercuts franchise salons appeal to men, women and children. Service revenues represent
approximately 92 percent of the Supercuts franchise total revenues. Average annual revenues in a Supercuts franchise salon which has been open
five years or more are approximately $338,000.
Cost Cutters (franchise salons). The Cost Cutters concept is a full service salon concept providing value priced hair care services for
men, women and children. These full service salons also sell a complete line of professional hair care products. The customer mix at Cost
Cutters is split relatively
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