In 2022, our country saw the inflation rate peak to 9.1%. Overall, 2022 averaged at 6.5% which is still three times the Federal governments target of just 2%. Americans across the country felt the hardships of inflation as they witnessed food and gas prices soaring into alarming prices. In the salon industry, prices also increased for both services and products. However, this increase did not hinder the upward growth of the industry. The beauty industry market continued to rise and is anticipated to continue rising by at least 6.85% for the next 3 years. Studies showed that factors such as the Lipstick Effect played a key role in keeping the industry afloat despite the economical struggles. Generation Z and Millennials also contributed to the growth with their trending interests in health, wellness, and cosmetics. Read more about these phenomena on our blog entries, The Lipstick Effect and Beauty Demands from Millennials and Generation Z . The Mimosa Salon Suites franchise experienced little to no conflict from the recession and ironically was able to provide support to struggling entrepreneurs. Our suites are highly competitive in the growing industry because they are low cost and high end. Our leasing fees compare to a salon booth yet are less expensive than other luxury suite franchises. Mimosa Salon Suites are on of a kind!
Mimosa’s story starts with Douglas Hauptman, a businessman who identified a problem in most markets: the inability of local stylists to bring their clients to a place that was both classy and affordable.
First, I can assure you that this article will not be about the product lipstick. The Lipstick Effect is a scientifically studied phenomenon relating economic hardship to people’s tendency to purchase items and services that enhance their appearance. Another significant detail in this theory is that the focus is not on high cost luxury goods such as expensive procedures or a diamond watch. The goods being referred to are low cost luxury goods. These include spendy hair and skins products, high end cosmetics, professional salon services, and so forth. In summary, it has been proven through economic studies that people spend more money on low cost luxury goods during times of national financial hardships. Many business investors have the possibility of recession weighing on their minds following the chaos caused by the pandemic and recent inflation. Mimosa Salon Suites would like to educate potential franchisees on the Lipstick Effect because it directly relates back to our franchise potential. The term Lipstick Effect first originated in 2007 by Estee Lauder. It was found that consumers were driven towards “pick me ups” when the economy was unstable. Experts reported that consuming small inexpensive luxury goods provided people with a sense of satisfaction that they were unable to buy in other ways during difficult periods of time. Even during the pandemic when masks were mandated, nail polish and perfume sales continued to rise while lipstick became virtually unnoticed. This is important to note because the name of the effect can bring too much conclusion on lipstick alone when the factor includes a broad spectrum of low-cost luxury goods and services.
There’s no set standard that makes the perfect salon suite franchise owner.
Maybe with another salon suite franchise, but not with Mimosa.
While there is no exact method to calculate the success rate of franchise investments, a quick review of studies will prove it to be quite impressive! According to About.com, “Some studies show that franchises have a success rate of approximately 90 percent as compared to only about 15 percent for businesses that are started from the ground up. The increased probability of success usually far outweighs any initial franchise fee and nominal royalties that are paid monthly." In this article, we will discuss the benefits of franchising and why it has an attractive success rate. Benefits contribute to lessoning the potential risks that you could experience when diving into the goal of running your own business from scratch. We will also discuss how Mimosa Salon Suites integrates these benefits into our franchise opportunity. Franchising and entrepreneurship are both business investments but entirely different in their dynamics. To learn more about the difference between the two, please see our blog Franchising Versus Entrepreneurship.
If a franchise claims to perform business with integrity, then it must show it in all dynamics of the company. By this I mean with the owners, franchisees, tenants, and clients. Integrity is often thought of as simple terms such as honesty or ethics. At Mimosa Salon Suites we take integrity seriously because we pride ourselves on it, making it crucial for us to communicate what integrity consists of to our potential franchisees. Doug has created Mimosa Salon Suites to bring hope, education, and empowerment to beauty professionals in a growing industry. We often discuss the challenges that professionals face in this niche and one of the most detrimental ones is unaffordable leasing of private suites. Our mission promises to make the dream of independence possible for our tenants and integrity is absolutely a key factor in this statement. Not only is integrity part of our mission, it is also a key factor in the running of the franchise business model. B elow we will discuss the 4 types of integrity we expect and require from our franchisees.
Our Mission: Mimosa Salon Suites mission is to provide a million square feet of hope to beauty professionals nationwide! Franchisees will utilize the coaching, support, branding and strategic alliances that Mimosa has developed over the last 10 years to build their business and shorten the learning curve for launching a successful salon studio rental business. Franchise is a broad term because there are endless types of franchises to invest in! It’s important to have some knowledge of the niche you choose to dive into but here at Mimosa we look for PASSION. We also work as a team with tenants, fellow franchisees, and the franchise director. As with any franchise you become interested in, its vital to understand the franchises mission, vision, and requirements. Below are 5 important qualities that we require in order to become a franchisee with Mimosa Salon Suites.
Let’s face it, not every day is a busy day at the salon suites, but it doesn’t mean we cannot stay productive! It’s important to let your salon tenants understand that one slow day does not mean business isn’t going well. There are several ways to stay busy and make the best of their down time and as a franchisee, you should continue to encourage this productivity. However, you must do so in a supportive manner in order to avoid being too controlling. Afterall, as a franchisee you want your tenants to be both successful and independent. As a franchise owner, you can create flyers for your salon suites listing suggestions for these periods of slow clientele. This strategy will keep your salon suites in good spirits while also benefiting the business all around. By making a flyer, the information is readily available but not overbearing or overwhelming. New salon suite owners may feel anxious when clientele slows down so it’s vital to keep them productive and far from feeling defeated. No time can go to waste when every minute is spent improving the environment, marketing, and skill sets.