Supercuts 2012 Annual Report Download - page 15

Table of Contents
Regis Salons. Regis Salons are primarily mall based, full service salons providing complete hair care and beauty services aimed at
moderate to upscale, fashion conscious consumers. In recent years, the Company has expanded its Regis Salons into strip centers. As of
June 30, 2012, of the 953 total Regis Salons, 156 Regis Salons were located in strip centers. The guest mix at Regis Salons is approximately
79 percent women, and both appointments and walk-in guests are common. These salons offer a full range of custom styling, cutting, hair
coloring and waving services, as well as professional hair care products. Service revenues represent approximately 82 percent of the concept's
total revenues. The average ticket was approximately $43 and $42 for fiscal years 2012 and 2011, respectively. Regis Salons compete in their
existing markets primarily by emphasizing the high quality of the services provided. Included within the Regis Salon concept are various other
trade names, including Carlton Hair, Sassoon, Hair by Stewarts, Hair Excitement, and Renee Beauty.
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 $22,000. 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 guest mix at MasterCuts is approximately 58 percent women. Service revenues compose approximately
80 percent of the concept's total revenues. The average ticket was approximately $22 for fiscal years 2012 and 2011.
The average initial capital investment required for a new MasterCuts salon is approximately $150,000 to $200,000, excluding average
opening inventory costs of approximately $14,300. Average annual salon revenues in a MasterCuts salon which has been open five years or
more are approximately $280,000.
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 guest 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 guest mix at SmartStyle Salons is approximately 75 percent women. Professional retail product sales contribute considerably to overall
revenues at approximately 34 percent. Additionally, the Company has 122 franchise salons located in Walmart Supercenters. The average
ticket was approximately $21 for fiscal years 2012 and 2011.
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 $13,100. Average annual salon revenues in a SmartStyle salon which has been open five years or
more are approximately $230,000.
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 guests at
convenient times and locations and at a reasonable price. This concept appeals to men, women and children, although male guests account for
approximately 66 percent of the guest mix. Service revenues represent approximately 89 percent of total company-owned Supercuts revenues.
The average ticket was approximately $17 for fiscal years 2012 and 2011.
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