A wellness business allows you to serve the people in your community and boost your bank account. See what wellness franchises are becoming increasingly popular and profitable.
Are Wellness Franchises Profitable?
Consumers’ view of wellness is expanding. More than just fitness and nutrition, the sector now also encompasses overall physical and mental health. Each generation defines wellness differently. Baby boomers are looking to improve or maintain their mobility and quality of life as they age. Millennials perceive their fitness and personal health as a key part of their lifestyle. In comparison, Gen X and Gen Z prioritize their personal health investments.
The estimated worth of the global wellness market was more than $1.5 trillion in 2021, according to a study by McKinsey and Company. That same survey found health takes over most of the spending in the U.S. at 50%. Medical devices, medicine, supplements, personal health trackers, and doctor visits are popular purchases, while appearance comes in second.
Types of Wellness Businesses
There are hundreds of types of investment options within the world of wellness franchises. Here’s a look at the top few from Franchising.com:
- Fitness: This includes gyms, Pilates studios, yoga studios, and cycle studios
- Diet and weight loss
- Back and foot comfort
- Skincare: Aestheticians, facials, waxing, or hair removal
- Nutrition: Coaching and supplements
- Medical Testing
Beauty is Making Billions
While it’s not considered a wellness business, beauty can benefit your well-being. Beauty includes taking care of your skin and hair.
Like your hair, the haircare industry itself is growing. The global hair market size stood at $75.06 billion in 2020, but Fortune Business Insights predicts it will reach nearly $113 billion by 2028. Almost everyone needs a haircut in America; the pandemic showed us that! In 2020 Statista found that 59 million Americans had their hair cut four or more times. And that year was a low year for hair care thanks to salons and barbershops having to shut down due to the pandemic.
There is a defined audience for each type of hair salon. For example, a barbershop targets men who understand the difference professional grooming makes. Customers are loyalists in this business. Once they find a stylist or salon that cuts their hair exactly how they like, they prefer to stick with them, making repeat clients a gimme.
Barbershop vs. Salon
The barbershop industry alone is worth $5 billion, and that revenue, according to IBISWorld, was expected to rise 1.5% last year. Men tend to get their hair cut more frequently than women. Stylists and barbers predict that the average time between haircuts for men is about four weeks, as opposed to about six weeks for women.
There are fewer barbershops in operation. Barbershops only account for about 5% of the U.S. hair, nail, and skin care services industry. This gives you, as a franchise owner, less competition and a bigger market to capitalize on.
The current trend for barbershops is nostalgic. The stores excelling in today’s market are paying homage to the traditional barbershop but putting a modern twist on it, like Scissors & Scotch with our kick-ass speakeasy vibe. Marketers are targeting masculinity like never before; men are looking for that luxurious spa feel when they get their haircut. That looks like a drink in hand, neck massage, or extra services besides their typical buzz cut. These services, on average, are at least $40. On top of a higher service cost, men are more likely to buy the product the stylists are using on their hair. Forbes finds that 81% of men’s grooming products are sold in brick-and-mortar locations like barbershops.
Scissors & Scotch: A Cut Above
Join the booming barbershop industry with a partnership like none other. Scissors & Scotch offers a reputable brand name, backed with a proven business model and operational expertise to level up your shop.
You don’t need to have experience chopping men’s hair or serving a whiskey neat to buy into this men’s haircut franchise.
Get on your way to becoming a badass business owner by getting started with Scissors & Scotch.