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Retail Case Studies

Sirius Day Spa

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Sirius Day Spa is a brand that is determined to change its industry. 

By Tim O’Connor, Knighthouse Media

Self-care and relaxation should not be a lot of work. However, men and women looking to unwind after a long work week by pampering themselves and absorbing some “me time” may subscribe to a litany of spa services at multiple locations. In a single month, a consumer might schedule appointments to have a massage, get eyelash extensions, have their nails manicured and have their hair blown dry. That can quickly add up to a lot of travel time, expense and exhaustion. 

Sirius Day Spa, a new health and wellness concept, looks to make self-care and relaxation more appealing by offering all those services in one convenient, single location with one affordable membership. “This is about your time, your experience, your value,” President Lyle Myers says. “This is the next big thing. It’s going to be a profound transformation in the market and we are already seeing the positive results.”

Changing the Model

The Leonesio Group (TLG-SDS), is no stranger to the health, beauty and wellness market. John Leonesio was the founder of Massage Envy and has helped launch several related brands, so he and his partners know the steps that are needed to put a new franchise on solid footing. Sirius Day Spa utilizes the Regional Developer model, which grants individuals a license to sell and support franchises in a specific markets across the United States. Sirius Day info box

To date, Sirius Day Spa has awarded 313 regional developer licenses and opened three locations in Lodi, Calif., Dallas and Scottsdale, Ariz. The company expects to have as many as 13 locations in operation by the end of the year. “It’s quite a success story in 14 months’ time to have 313 licensees already on board,” Myers says. “That’s a testament to the product. What Sirius Day Spa is doing in the market is going to be very disruptive.”

The most disruptive thing about Sirius Day Spa is its membership model. Typically, at a single service concept a guest is not able to commit to coming as much as they would like due to the stresses of daily life. Many are unable to schedule appointments and therefore fall behind with their accrued services. But Sirius created a different concept. Memberships are credited dollar-for-dollar for any service or retail a guest may want, and any unused spa credit will roll over to the next month. Further, members receive up to a 30 percent discount from the non-member rate as well as a 10 percent discount on retail. That way, if a guest doesn’t want a massage one month, they can still use their membership for any other service, or if they have enough credits built up they can take advantage of two or more services in one visit.

The membership setup is attractive for guests, but it’s good for franchise owners as well. With the 30 percent discount, a member that pays $59 a month can receive a facial or massage for $54 and still have $5 in credit left over to use for a second service or retail product. That leftover credit helps drive better sales for the franchise. 

The model is possible because Sirius Day Spa offers more than 40 different services that appeal to its target demographic. A single location can do everything from mud wraps to teeth whitening and micro-peels and all services are administered by licensed and skilled professionals. 

Inside each location guests will find the Serenity Lounge, a peaceful environment outfitted with massage chairs where customers can enjoy a few minutes of quiet to put them in the proper mindset before their appointment. The company also offers a range of products, such as skin care treatments from DermaQuest and hair care products from L’Oréal that customers can purchase directly from any Sirius Day Spa location, creating additional revenue streams.

Sirius fits all of those services into a single location that varies between 3,500 and 4,500 square feet. As it expands, spas will mostly be located in Class A retail centers near major traffic areas, making them easier for customers to access. “These are beautiful day spas which are an incredible value and provide a convenient way for our customers to receive all of their services,” Myers says.

Franchise Support

Just as Sirius designed its spa to best serve its customers, the company has put the systems in place to help its franchisees thrive. “We understand upfront what is needed to support our franchisees,” Myers states.

Opening a new Sirius Day Spa begins with a good location. Sirius’ corporate team provides complete real estate support and it works with commercial real estate brokers from Phoenix-based Keyser Commercial to identify potential sites. “They will assist the franchise in finding a location that meets their criteria,” Myers says. “They will be there for them every step of the way, along with the regional developer.”

Once a new site is identified, Sirius provides franchisees with a custom layout of their space. It also negotiates costs with vendors on furniture and equipment to help franchisees secure everything they need to complete the construction process at the best price.

But a successful franchise needs more than the right equipment and location. It needs people who understand how to run the business and serve its customers. To that end, Sirius conducts a week of training for new franchisees at its headquarters, and it also sends a team to the new location for in-store training during the soft opening period. 

Sirius further aids in the startup process and ongoing operations through SpaNet, a cloud-based corporate intranet that provides franchisees with all the business systems, marketing materials, operating manuals and processes they require. “We already set up everything so the franchisee, at a touch of a button, can go in, go to the “Guide-to-Open and not miss a thing,” Myers explains.

With a proven model and experienced leadership in place, Sirius is primed for rapid growth. The company plans to open additional locations in Arizona and Texas, as well as Minnesota, Georgia and Florida this year with more to come.   “It’s the right concept at the 

right time,” Myers says.

 

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