In part 2 of our franchise series, Jane Kitchen moves away from the US and takes a look at
some of the biggest franchises across the rest of the world – from France, to China to Australia
By Jane Kitchen | Published in Spa Business 2016 issue 2
Spa franchises are growing leaps and bounds, offering time-starved consumers quick, focused options in convenient locations – and often at attractive prices. While the majority of spa franchise models have found success in the US (see SB16/1 p82), they’re quickly gaining traction worldwide, with niche opportunities opening up across the globe.
Read more from this issue of Attractions Management magazine
View contents of Attractions Management 2016 issue 2
Editor’s letter: Who will own the well-life consumer?
It’s the wild west out there and there’s a land grab going on as interested parties make their play to own the well-life consumer. It’s not clear yet how this will pan out as the industry matures, or where spa stands in the pecking order, but the threats are clear
Spa people: Tyler Gage
Runa’s Tyler Gage working with Channing Tatum on an Amazon healing centre
Spa people: Todd Hewitt
For the first time in four years, Shangri-La appoints a global head of spas. Spa Business talks to Todd Hewitt, the man to fill the role
Spa people: James White
Thermal spa researcher and consultant to head up major overhaul of Maruia Hot Springs in New Zealand
Interview: Irene Forte
Daughter of hotelier Sir Rocco Forte and niece of designer Olga Polizzi tells Jane Kitchen why the Rocco Forte Hotel’s new spa concept is a family affair
Design: Natural wonderland
Neena Dhillon visits the striking new Keemala resort and spa in Phuket and finds out about its unique design
Science: Skin deep
Modern research is redefining the way we think about skin. Neuroscientist Dr Claudia Aguirre explains what the findings mean for spas
Promotional feature: Clarins
Clarins’ head of Spas, My Blend and Retail, Prisca Courtin-Clarins, talks about the strides the company is making in highly prescriptive skincare, and the development of hotel spa concepts with the My Blend brand
Promotional feature: Massage Heights
There’s a clear gap in the UK spa market for an affordable local offering that places an emphasis on top-quality treatments and services. Is Massage Heights, the successful US franchise chain, the solution?
Promotional feature: Neaumorinc
From a director of spa at Four Seasons to an entrepreneur who introduces exciting new beauty brands to five-star facilities, Shawna Morneau’s experience on both sides of the industry is enabling her consultancy to have an impact worldwide
Promotional feature: Dr Burgener Switzerland
Dr Burgener Switzerland to launch Haute Couture, a revolutionary skin treatment that personalises product and treatments to each person’s skin, using cutting-edge technology
Sensory zone: Set adrift
Niamh Madigan talks to researcher Justin Feinstein who thinks floatation could be a shortcut to meditation
Fitness: Defying gravity
The founder of AntiGravity® Aerial Yoga tells Niamh Madigan about the technique and a new suspension massage he’s developing for spas
Promotional feature: Gharieni
As Gharieni prepares to celebrate 25 years in the industry, founder and CEO Sammy Gharieni talks about the company’s culture of innovation, and how there will so many more exciting products to come
Dragonfly China Founded 12 years ago in Shanghai by Hong Kong-born celebrity hairstylist Georgie Yam (see SB09/4 p20) and local Chinese business partner Eve Zhou, Dragonfly has 15 retreats, three of which are franchises.
The team later brought in Canadian business partner Randal Eastman and a fourth business partner, Grace Zhou. Yam has since passed the reins of operations to the other partners.
Eastman says the Dragonfly model is built around relaxation services that are appealing to both men and women. “It’s a lifestyle concept that is more accessible to a wider audience than a typical beauty-oriented day spa,” he explains.
Projected initial investment for a new spa in China – including construction, fit-out, decoration, supplies, print materials, staff training and franchise fees – is around CNY2m, (US$306,200, €277,820, £219,590).
“China is a different market,” says Eastman. “It’s full of spa offerings and very fragmented, but many franchise or chain operations have closed or are struggling in recent times. I predict more chains growing in China as there is increasing consolidation in this sector.”
Eastman says Dragonfly is focused on expanding its business in China. It’s added traditional therapies such as Chinese massage, moxibustion and scraping to appeal to locals rather than catering just to its core customer base of expatriates.
Dragonfly has 15 retreats, three of which are franchises
Chinese massage is a newly-added service
"I predict more chains growing in China as there is increasing consolidation in this sector" - Randal Eastman
One to watch Sense of Touch - Hong Kong With six locations, two of which are franchises, Hong Kong-based Sense of Touch has not focused on franchises so far, but CEO Neil Orvay says that’s likely to change – he has plans to open at least 20 more spas and is talking with a master franchisee in Vietnam.
Initial franchise payment is approximately US$50,000 (€45,370, £35,860), with ongoing payments of 5 per cent of turnover plus a 2 per cent marketing contribution. Franchisees receive support in marketing, training, menu development, sourcing staff, inventory and ordering and spa management system updates.
Sense of Touch’s main product partner is British brand Elemis and the franchises offer this along with Dermalogica.
There are six day spas already and plans for at least 20 more
There are six day spas already and plans for at least 20 more
So far all spas are in Hong Kong, but Orvay is talking to a master franchisor in Vietnam
CEO Neil Orvay
Endota Australia Based in Melbourne, and started by high school friends Melanie Gleeson and Belinda Fraser in 2000, Endota has 90 day spa franchises in Australia. Fraser left the company in mid 2015 and new partners have since come on board.
With a predominantly female audience, the spa franchise recognises that women often put the needs of others before their own and encourages them to ‘be your best me’. The spas feature a signature, calming scent, as well as originally-composed music and its own-branded skincare line. Other suppliers include Dermalogica and HydroPeptide.
Costs of fitting out a spa are between AU$350,000 (US$251,290, €228,000, £180,210) and AU$450,000 (US$323,090, €293,140, £231,700). Franchisees attend Endota Spa introduction and education courses and the company also provides four days of in-spa training before opening. Endota Spa training schools also offer refresher courses for product education and retail sales.
Melanie Gleeson started the chain in 2000. Today it employs more than 1,000 people
Endota has 90 day spas across Australia
Body’minute France Based in Paris, Body’minute got its start back in 1998 and has grown to include 400 beauty centres across Europe – mostly in France. The company also has one location in Miami, USA and wants to launch in the UK, Italy, Spain, Belgium and Luxembourg.
These membership-based, female-only beauty salons offer waxing, facials, body treatments, relaxation and manicures – all without an appointment.
Body’minute has positioned itself as a low-price player, but had a turnover of around €100m (US$110.2m, £79m) in 2012. Membership is €9.90 (US$11, £8) per month with facial and body treatments ranging from €9.90 to €48 (US$50, £36).
Cost of a Body’minute franchise starts at €130,000 (US$143,280, £102,760) and there’s a fixed monthly fee per treatment room. Average day spa turnover is reported at €250,000 (US$275,540, £197,610) after two years.
It makes its own products and also has a training school in Paris. IT, managerial and marketing training is provided as well as an annual seminar and regional round tables.
One to watch The Massage Company - UK The Massage Company debuted in the UK in April 2016, with its first 14-treatment room flagship location in Surrey, England.
This is a new venture from Charlie Thompson – former head of health and beauty for UK’s Virgin Active, and Elliot Walker – former managing director of Murad UK. It will offer a membership package with monthly massages at £44.95 (US$63, €57).
“We’re building massage as a routine part of lifestyle,” says Thompson. “We’re changing the way that people view it in the UK and bringing it into the mainstream.”
The first UK franchise opened in April and the plan is to create a national chain
The first UK franchise opened in April and the plan is to create a national chain
We’re building massage as a routine part of lifestyle - charlie thompson
One to watch LivNordic - Sweden Not a franchise per se, LivNordic is a spa concept available for licensing from Swedish-based spa consultancy Raison d’Etre, it launched in April 2015 on Viking Star Cruises (see SB15/3 p32) and focuses on holistic wellbeing, drawing inspiration from Nordic culture and inspired by nature.
The first land-based LivNordic Spa & Wellness opened in January in the Cayan Tower in Dubai, and this April, a second LivNordic is due to open on-board Viking Sea. The licensing opportunity is mainly geared towards hotels, where the spa is a standalone brand, yet integrated into overall operations. The business model is a management and joint venture partnership between Raison d’Etre and the hotel owner.
The plan over the next five years is to have at least 15 LivNordic Spas open, says Anna-Cari Gund, managing director of Raison d’Etre.
“We see a great demand for our Nordic lifestyle concept, where wellness is incorporated in everyday life,” says Gund. “People all over the world are longing for a closer connection to nature.”
The Nordic spa concept launched on the Viking Star cruise ship last year and has a focus on bathing rituals with a modern Scandinavian design
The Nordic spa concept launched on the Viking Star cruise ship last year and has a focus on bathing rituals with a modern Scandinavian design
l The Nordic spa concept launched on the Viking Star cruise ship last year and has a focus on bathing rituals with a modern Scandinavian design
"We see a great demand for our nordic lifestyle concept" - Anna-Cari Gund
Four Fountains India Launched in 2007 in the tech-hub city of Pune, India, Four Fountains now has 30 franchisees in three cities across the country.
With backing from private equity firm Fulcrum Ventures, the chain was set up by Anurag Kedia, Saurabh Garg and Sunil Rao, three business school graduates working as sales and consulting managers who were frustrated by their inability to afford luxury spas.
The team created Four Fountains in an effort to put the health benefits of spa therapies within reach of more people and their ambitious target is to have 300 spas in 10 major Indian cities over the next few years, says Four Fountains company director Kedia.
“Spa franchises continue to grow,” he explains. “In India, the market is just opening up – the penetration rate for spas and massages is in the low-single-digits, and hence there’s a long way to go from here when it comes to growth.”
Currently every Four Fountains spa has a turnover of close to INR10m (US$146,000, €132,470, £104,710) annually.
Total cost of setting up a spa with Four Fountains is around INR6m (US$87,600, €79,480, £62,820), which includes cost for interiors, furniture, fixtures, security deposit and working capital. Four Fountains doesn’t have an up-front franchise fee, but instead, charges a royalty on the total revenue franchisees generate.
"In India, the market is just opening up – the penetration rate for spas and massage is in the low-single-digits" - Anurag Kedia
An opportunity to reimagine one of the UK’s most recognisable towers has been formally
opened by Rivington Hark, as St Johns Beacon invites operators and partners to shape its
next phase. [more...]
In part 2 of our franchise series, Jane Kitchen moves away from the US and takes a look at
some of the biggest franchises across the rest of the world – from France, to China to Australia
By Jane Kitchen | Published in Spa Business 2016 issue 2
Spa franchises are growing leaps and bounds, offering time-starved consumers quick, focused options in convenient locations – and often at attractive prices. While the majority of spa franchise models have found success in the US (see SB16/1 p82), they’re quickly gaining traction worldwide, with niche opportunities opening up across the globe.
Read more from this issue of Attractions Management magazine
View contents of Attractions Management 2016 issue 2
Editor’s letter: Who will own the well-life consumer?
It’s the wild west out there and there’s a land grab going on as interested parties make their play to own the well-life consumer. It’s not clear yet how this will pan out as the industry matures, or where spa stands in the pecking order, but the threats are clear
Spa people: Tyler Gage
Runa’s Tyler Gage working with Channing Tatum on an Amazon healing centre
Spa people: Todd Hewitt
For the first time in four years, Shangri-La appoints a global head of spas. Spa Business talks to Todd Hewitt, the man to fill the role
Spa people: James White
Thermal spa researcher and consultant to head up major overhaul of Maruia Hot Springs in New Zealand
Interview: Irene Forte
Daughter of hotelier Sir Rocco Forte and niece of designer Olga Polizzi tells Jane Kitchen why the Rocco Forte Hotel’s new spa concept is a family affair
Design: Natural wonderland
Neena Dhillon visits the striking new Keemala resort and spa in Phuket and finds out about its unique design
Science: Skin deep
Modern research is redefining the way we think about skin. Neuroscientist Dr Claudia Aguirre explains what the findings mean for spas
Promotional feature: Clarins
Clarins’ head of Spas, My Blend and Retail, Prisca Courtin-Clarins, talks about the strides the company is making in highly prescriptive skincare, and the development of hotel spa concepts with the My Blend brand
Promotional feature: Massage Heights
There’s a clear gap in the UK spa market for an affordable local offering that places an emphasis on top-quality treatments and services. Is Massage Heights, the successful US franchise chain, the solution?
Promotional feature: Neaumorinc
From a director of spa at Four Seasons to an entrepreneur who introduces exciting new beauty brands to five-star facilities, Shawna Morneau’s experience on both sides of the industry is enabling her consultancy to have an impact worldwide
Promotional feature: Dr Burgener Switzerland
Dr Burgener Switzerland to launch Haute Couture, a revolutionary skin treatment that personalises product and treatments to each person’s skin, using cutting-edge technology
Sensory zone: Set adrift
Niamh Madigan talks to researcher Justin Feinstein who thinks floatation could be a shortcut to meditation
Fitness: Defying gravity
The founder of AntiGravity® Aerial Yoga tells Niamh Madigan about the technique and a new suspension massage he’s developing for spas
Promotional feature: Gharieni
As Gharieni prepares to celebrate 25 years in the industry, founder and CEO Sammy Gharieni talks about the company’s culture of innovation, and how there will so many more exciting products to come
Dragonfly China Founded 12 years ago in Shanghai by Hong Kong-born celebrity hairstylist Georgie Yam (see SB09/4 p20) and local Chinese business partner Eve Zhou, Dragonfly has 15 retreats, three of which are franchises.
The team later brought in Canadian business partner Randal Eastman and a fourth business partner, Grace Zhou. Yam has since passed the reins of operations to the other partners.
Eastman says the Dragonfly model is built around relaxation services that are appealing to both men and women. “It’s a lifestyle concept that is more accessible to a wider audience than a typical beauty-oriented day spa,” he explains.
Projected initial investment for a new spa in China – including construction, fit-out, decoration, supplies, print materials, staff training and franchise fees – is around CNY2m, (US$306,200, €277,820, £219,590).
“China is a different market,” says Eastman. “It’s full of spa offerings and very fragmented, but many franchise or chain operations have closed or are struggling in recent times. I predict more chains growing in China as there is increasing consolidation in this sector.”
Eastman says Dragonfly is focused on expanding its business in China. It’s added traditional therapies such as Chinese massage, moxibustion and scraping to appeal to locals rather than catering just to its core customer base of expatriates.
Dragonfly has 15 retreats, three of which are franchises
Chinese massage is a newly-added service
"I predict more chains growing in China as there is increasing consolidation in this sector" - Randal Eastman
One to watch Sense of Touch - Hong Kong With six locations, two of which are franchises, Hong Kong-based Sense of Touch has not focused on franchises so far, but CEO Neil Orvay says that’s likely to change – he has plans to open at least 20 more spas and is talking with a master franchisee in Vietnam.
Initial franchise payment is approximately US$50,000 (€45,370, £35,860), with ongoing payments of 5 per cent of turnover plus a 2 per cent marketing contribution. Franchisees receive support in marketing, training, menu development, sourcing staff, inventory and ordering and spa management system updates.
Sense of Touch’s main product partner is British brand Elemis and the franchises offer this along with Dermalogica.
There are six day spas already and plans for at least 20 more
There are six day spas already and plans for at least 20 more
So far all spas are in Hong Kong, but Orvay is talking to a master franchisor in Vietnam
CEO Neil Orvay
Endota Australia Based in Melbourne, and started by high school friends Melanie Gleeson and Belinda Fraser in 2000, Endota has 90 day spa franchises in Australia. Fraser left the company in mid 2015 and new partners have since come on board.
With a predominantly female audience, the spa franchise recognises that women often put the needs of others before their own and encourages them to ‘be your best me’. The spas feature a signature, calming scent, as well as originally-composed music and its own-branded skincare line. Other suppliers include Dermalogica and HydroPeptide.
Costs of fitting out a spa are between AU$350,000 (US$251,290, €228,000, £180,210) and AU$450,000 (US$323,090, €293,140, £231,700). Franchisees attend Endota Spa introduction and education courses and the company also provides four days of in-spa training before opening. Endota Spa training schools also offer refresher courses for product education and retail sales.
Melanie Gleeson started the chain in 2000. Today it employs more than 1,000 people
Endota has 90 day spas across Australia
Body’minute France Based in Paris, Body’minute got its start back in 1998 and has grown to include 400 beauty centres across Europe – mostly in France. The company also has one location in Miami, USA and wants to launch in the UK, Italy, Spain, Belgium and Luxembourg.
These membership-based, female-only beauty salons offer waxing, facials, body treatments, relaxation and manicures – all without an appointment.
Body’minute has positioned itself as a low-price player, but had a turnover of around €100m (US$110.2m, £79m) in 2012. Membership is €9.90 (US$11, £8) per month with facial and body treatments ranging from €9.90 to €48 (US$50, £36).
Cost of a Body’minute franchise starts at €130,000 (US$143,280, £102,760) and there’s a fixed monthly fee per treatment room. Average day spa turnover is reported at €250,000 (US$275,540, £197,610) after two years.
It makes its own products and also has a training school in Paris. IT, managerial and marketing training is provided as well as an annual seminar and regional round tables.
One to watch The Massage Company - UK The Massage Company debuted in the UK in April 2016, with its first 14-treatment room flagship location in Surrey, England.
This is a new venture from Charlie Thompson – former head of health and beauty for UK’s Virgin Active, and Elliot Walker – former managing director of Murad UK. It will offer a membership package with monthly massages at £44.95 (US$63, €57).
“We’re building massage as a routine part of lifestyle,” says Thompson. “We’re changing the way that people view it in the UK and bringing it into the mainstream.”
The first UK franchise opened in April and the plan is to create a national chain
The first UK franchise opened in April and the plan is to create a national chain
We’re building massage as a routine part of lifestyle - charlie thompson
One to watch LivNordic - Sweden Not a franchise per se, LivNordic is a spa concept available for licensing from Swedish-based spa consultancy Raison d’Etre, it launched in April 2015 on Viking Star Cruises (see SB15/3 p32) and focuses on holistic wellbeing, drawing inspiration from Nordic culture and inspired by nature.
The first land-based LivNordic Spa & Wellness opened in January in the Cayan Tower in Dubai, and this April, a second LivNordic is due to open on-board Viking Sea. The licensing opportunity is mainly geared towards hotels, where the spa is a standalone brand, yet integrated into overall operations. The business model is a management and joint venture partnership between Raison d’Etre and the hotel owner.
The plan over the next five years is to have at least 15 LivNordic Spas open, says Anna-Cari Gund, managing director of Raison d’Etre.
“We see a great demand for our Nordic lifestyle concept, where wellness is incorporated in everyday life,” says Gund. “People all over the world are longing for a closer connection to nature.”
The Nordic spa concept launched on the Viking Star cruise ship last year and has a focus on bathing rituals with a modern Scandinavian design
The Nordic spa concept launched on the Viking Star cruise ship last year and has a focus on bathing rituals with a modern Scandinavian design
l The Nordic spa concept launched on the Viking Star cruise ship last year and has a focus on bathing rituals with a modern Scandinavian design
"We see a great demand for our nordic lifestyle concept" - Anna-Cari Gund
Four Fountains India Launched in 2007 in the tech-hub city of Pune, India, Four Fountains now has 30 franchisees in three cities across the country.
With backing from private equity firm Fulcrum Ventures, the chain was set up by Anurag Kedia, Saurabh Garg and Sunil Rao, three business school graduates working as sales and consulting managers who were frustrated by their inability to afford luxury spas.
The team created Four Fountains in an effort to put the health benefits of spa therapies within reach of more people and their ambitious target is to have 300 spas in 10 major Indian cities over the next few years, says Four Fountains company director Kedia.
“Spa franchises continue to grow,” he explains. “In India, the market is just opening up – the penetration rate for spas and massages is in the low-single-digits, and hence there’s a long way to go from here when it comes to growth.”
Currently every Four Fountains spa has a turnover of close to INR10m (US$146,000, €132,470, £104,710) annually.
Total cost of setting up a spa with Four Fountains is around INR6m (US$87,600, €79,480, £62,820), which includes cost for interiors, furniture, fixtures, security deposit and working capital. Four Fountains doesn’t have an up-front franchise fee, but instead, charges a royalty on the total revenue franchisees generate.
"In India, the market is just opening up – the penetration rate for spas and massage is in the low-single-digits" - Anurag Kedia
A new immersive attraction designed to transport visitors into the final hours of ancient Pompeii
is preparing to open near the world-famous archaeological site in southern Italy.
Experience design company, BRC Imagination Arts, has completed a transition that sees founder
Bob Rogers pass ownership of the business to four long-serving senior executives, while
remaining actively involved with the company.
Movie Park Germany has opened a new Paramount Pictures-themed attraction as part of its 30th
anniversary celebrations, using immersive storytelling and adaptive reuse to reinforce the park’s
longstanding “Hollywood in Germany” positioning.
Therme Manchester’s 28-acre development, which will include interconnected glass pavilions
that measure 65,000sq m, will be the largest bathing and wellbeing attraction in the world once
complete, according to prof David Russell, CEO of Therme UK.
Efteling has opened Hooghmoed, a new family drop tower designed to broaden the appeal of its
recently launched Sirene Island themed area and introduce younger visitors to thrill attractions.
A proposed Puy du Fou development near Bicester and Universal Destinations and Experiences’
planned resort in Bedford are emerging as part of a wider transformation of the Oxford–
Cambridge Growth Corridor into a major centre for UK leisure and tourism inv
Shedd Aquarium has opened the Immersion Theater developed in partnership with SimEx-
Iwerks, as part of a wider strategy to enhance the guest experience and create additional
revenue opportunities.
The UK government has announced a temporary reduction in VAT on visitor attractions and
children’s meals as part of a summer cost-of-living support package designed to stimulate the
visitor economy and encourage family days out.
As designer Yinka Ilori prepares for his first solo gallery show in London, he speaks exclusively
to CLADmag about his mission to spread joy, the power of play, and his bold approach to using
colour (including the colours you won’t see in his work).
The government of Thailand is exploring plans for a THB300bn (£6.3bn, US$8.3bn)
entertainment complex in the country’s Eastern Economic Corridor (EEC), with officials
proposing a large-scale theme park and sports destination as part of a broader tourism and
economic development strategy.
An opportunity to reimagine one of the UK’s most recognisable towers has been formally
opened by Rivington Hark, as St Johns Beacon invites operators and partners to shape its
next phase. [more...]
