Supercuts 2002 Annual Report Download - page 19

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Table of Contents
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.
Staff Recruiting and Retention
Recruiting quality managers and hairstylists 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 imagination. The
Company has been and believes it will continue to be successful in recruiting capable managers and stylists for a number of reasons. The
Company utilizes a broad compensation system including cash incentives, merchandise awards, company-sponsored trips and benefit
programs. The Company believes that its compensation structure for salon managers and hairstylists is competitive within the industry. Stylists
benefit from the Company’s high-traffic locations, as well as name-recognition from Regis and Supercuts, 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. New salons are designed and constructed according to the Company’s standard specifications, thereby reducing design and
construction costs and enhancing operating efficiencies. Salon fixtures and equipment are also 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 constructing and furnishing a new salon, including inventories, ranges from approximately $40,000 for a new
SmartStyle to $185,000 for a Regis Salon. Of the total construction 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 construction department, and designs and supervises the construction, furnishing and fixturing of
all new company-owned salons and certain franchise locations. The Company has developed considerable expertise in designing visually
appealing salons. The design and construction staff focuses on aesthetic appeal, efficient use of space, cost and rapid completion times. The
Company’s salons are airy in appearance and have limited partitions. Hair care products offered for sale are prominently and attractively
displayed in the salons.
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