Supercuts 2012 Annual Report Download - page 19

Table of Contents
company-owned and franchised, contribute to the Funds, the majority of which are allocated to the contributing market for media placement
and local marketing activities. The remainder is allocated for the creation of national advertising campaigns and system wide activities. This
intensive advertising program creates significant consumer awareness, a strong concept image and high loyalty.
Salon Education and Training Programs:
The Company has an extensive hands-on training program for their stylists which emphasizes technical training in hairstyling and cutting,
hair coloring, texturizing services and hair treatment regimes, as well as guest service skills and product sales. The objective of the training
programs is to ensure that guests receive professional and quality services, which the Company believes will result in additional repeat guests,
referrals and product sales. The Company is currently evaluating expanding the training program based on the strategy of improving the guest
experience.
The Company has over 130 full and part-time artistic directors who train stylists on the techniques to provide salon services and instruct
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 200 DVD titles designed to enhance the
technical skills of stylists.
The Company has guest service training programs designed to improve the interaction between employees and guests. Employees are
trained in the proper techniques in greeting the guest, telephone courtesy and professional behavior through a series of professionally designed
DVDs, along with 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. Stylists benefit from the
Company's high-traffic locations and receive a steady source of new business from walk-in guests. 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 will have costs greater than
normal with a cost between $225,000 and $500,000 to furnish. International Sassoon salons costs could be even greater than the ranges above.
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.
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