Our Salon Franchise is a Recession Resilient Opportunity
There’s not a business out there that doesn’t face some risk as they work to achieve economies of scale and remain viable. Still, most entrepreneurs strive to create as much stability for themselves as possible by investing in industries that have proven to be resilient.
Backed by nearly 57 years of experience, Lemon Tree has flourished through various economic shifts. Our impressive track record proves just how capable we are of outlasting the highs and lows that come with a fluctuating economy.
If you’d like to invest in the beauty industry, finding a recession resilient franchise like Lemon Tree offers a level of security that should provide some peace of mind.
Currently, the salon industry is valued at $39.5 billion within the United States.
This industry is growing at a rate of 28.7% as of 2021.
Beauty salons account for 95% of revenue within the hair salon industry.
55.2% of services requested in the industry are haircuts and styling, specifically.
With per capita disposable income on the rise, spending in this industry is predicted to increase. Impressively, during the recession of 2008, salons and beauty parlors saw a growth in sales and fared better than many other industries.
Looking Good Never Goes Out of Style
Pandemic or not, people still want to look their best. It can be even more important for people to spend a little something on self-care during difficult times. Plus, it’s a well-known fact that even when nonessential services within the industry became obsolete, people still needed haircuts.
How is it That Hair Salons Stay in Business When Others May Collapse?
1. An Affordable Service
When the economy tanks, certain luxuries are no longer an option. But most people can still spring a few bucks to keep their hair looking good. High-end salons may suffer during such times because their prices and services are nonessential, but family-focused salons like Lemon Tree offer quality service at a fair price. That makes hair care affordable for individuals and families from a broad demographic.
2. There’s No App for That
While apps have put the world at our fingertips, no kind of technology—no matter how advanced—can step up to a chair and make you look like a million bucks. But, with a stylist on hand who is skilled in everything from coloring, cutting, blowouts, and hair treatments, such a transformation is easily accomplished. As an entirely hands-on service, salon care will never be overtaken by technology.
3. Not Just Anyone Can Do It
When you want a certain look that’s trending or a particular hair color you’ve seen in a post somewhere, you want to make sure it’s done just right. Our licensed stylists are professionally trained to take on even the most difficult hair type to bring about the desired outcome.
Every stylist has to go through rigorous instruction for 6-24 months to receive their cosmetology license. The salon school also has to be state-approved for the license to be valid. The skills and training learned are highly specialized and not easily duplicated.
4. People Love to Feel Cared For
It may not be quite like spending the day at a luxurious, full-service spa, but having your hair washed, blow-dried, and styled is still a form of pampering. People enjoy feeling like they’re at the center of someone’s attention for an hour for some TLC that may be long overdue. Human contact has been proven to boost the immune system, reduce the risk for certain diseases, and lower blood pressure. Just having someone to talk to also plays a critical role in mental and emotional well-being. Who knew you could receive so many peripheral benefits by just spending time at the salon?
When the Economy Takes a Nosedive
There have been times throughout history when the economy slows dramatically, leading to major shifts within the market. Certain industries, however, seem to weather the downturn better than others. There are a few basic services that people simply cannot do without, regardless of how bad things get.
For those looking for a recession resilient franchise, there are a few sectors that do especially well, come what may.
Stores like Dollar General and Wal-Mart do exceptionally well during recessions. People are looking to save money, so they opt for less expensive products during hard times. Consumer staples like soap, shampoo and deodorant are always in demand.
People still get sick, babies are born, and immunizations are still needed, even during a recession.
Food and Nourishment
Regardless of what’s happening economically, people need sustenance to survive. Many national grocer companies were hardly affected by the 2008 recession.
Goods and products have to make their way from warehouse to retailer, no matter what. Freight companies sometimes perform even better during a recession, keeping the shelves stocked.
Repairs and DIY Projects
People resort to taking on projects themselves when they can’t afford to pay someone else, which means businesses that sell auto parts or home improvement products can thrive during a recession.
Power and water bills don’t go away during economic crises. Utility companies hardly miss a beat when the economy falters.
As has been mentioned, people will never stop caring about how they look. Feeling confident about one’s appearance boosts self-esteem. There is so much value in being able to provide this kind of care when it’s needed the most. While high-dollar salons and products tend to see a decline in sales, affordable family hair care can still thrive, even during economic crises.
Why Hair Care Makes the Cut
During economic hardship, engaging in any familiar routines and rituals is important. These activities can reduce anxiety and give one the sense that some things remain unchanged. Stopping by the salon for a haircut or color is one activity that reassures customers that certain services can still be relied upon.
While people may not be able to afford high-dollar beauty services, during uncertain times there tends to be an uptick in the industry due to a phenomenon called the Lipstick Effect. A term coined by Investopedia, this refers to the tendency people have to spend a little something on themselves during recessions or pandemics to find comfort in simple indulgences, such as buying a new tube of lipstick. The same effect is seen in hair salons like Lemon Tree where, without breaking the bank, a person can still splurge on a new hairdo. That’s what makes our salons such a recession resilient franchise.
Hair care and waxing are not a one-and-done deal. Such services require ongoing upkeep that makes for a steady flow of return customers.
In the LA Times, it was reported that there will be a need for 15.7% more hairdressers and stylists in coming years. The CAGR is also forecast to grow at around 4% from 2021-2026.
It’s a Cultural Thing
In the western hemisphere, the way one presents oneself is a reflection of that person’s identity and well being. We care a great deal about appearances.
Your Own Safety Net
One thing that makes Lemon Tree such a recession resilient franchise is the reliable, built-in support system on which our Franchise Owners depend. The systems and personnel we have in place are exceptional! They’re the reason our business continues to grow, despite economic upsets.
Each franchise candidate that enters our training program receives 40 hours of classroom training and 50 hours of onsite training. Our proven instruction means everyone gets the same, high-level introduction to this industry. That means Franchise Owners are equally equipped to succeed as salon franchise owners.
Initial and Ongoing Help
Each applicant has all the help they need to find the right location and prepare their store for opening day. We’re here to ensure that Franchise Owners can build a strong supply chain through our affiliate partner, Paul Mitchell. We use highly effective marketing strategies to attract customers from day one.
Always On Call
Our Franchise Owners love knowing they can call on us at a moment's notice for any reason and receive an answer within 24 hours. We’re invested in each member of our Lemon Tree family and want their success as much as they do. Through emails, phone calls, and in-person visits, we are there to see that they achieve economies of scale and feel well supported.
Start Your Recession Proof Franchise Today
When you know such a strong, supportive team has your back, you can face economic challenges knowing you’re never alone. We’ve outlasted plenty of national crises in the past decades, and we are committed to moving forward and adapting to whatever comes.
If you’ve got your eye on the beauty industry and can see what a recession resilient franchise this is, you may want to see where this path takes you. You never know, this could be the opportunity you’ve been waiting for!