Supercuts 2007 Annual Report Download - page 17

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 190 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
cost savings due to the economies of scale.
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, ranges from approximately
$25,000 to $225,000, 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 $225,000 and $500,000 to furnish with International Vidal Sassoon salons costing potentially even more. 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 focus on visual appeal, efficient use of space, cost and rapid completion times.
Salon Management Information Systems:
At all of its company-owned salons, the Company utilizes a point-of-sale (POS) information system to collect daily sales information.
Salon employees deposit cash receipts into a local bank account on a daily basis. The POS system sends the amount expected to be deposited to
the corporate office, where the amount is reconciled daily with local deposits transferred into a centralized corporate bank account. The salon
POS information is consolidated into several management systems maintained at the corporate office. The information is also used to generate
payroll information, monitor salon performance, manage salon staffing and payroll costs, and generates customer data to identify and anticipate
industry pricing and
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