SUCCESSSTORIES
INSPIRING TALES OF STARTUPS, GROWTH AND OVERCOMING HARDSHIPS
Becoming a Credit-Worthy
Franchise Company
BY MAE MAÑACAP-JOHNSON
TODD LEFF President and CEO,
Hand and Stone Massage and Facial Spa
ith a desire to
bring the benefits
of massage to a
broader base of consumers,
John Marco, a physical
therapist, founded Hand &
Stone Massage and Facial Spa
in 2004. The first location,
which continues to thrive up
to this day, opened in Toms
River, New Jersey.
To further expand the brand, Hand & Stone eventually
ventured into franchising. “The company started to franchise in
2008 right before a very severe downturn in the economy. It
was hard to find franchisees willing to invest,” says Hand &
Stone President and CEO Todd Leff, recalling the early struggles
of the business. “There was also hesitation on the part of
landlords as the business model had not yet been widely
adopted.”
But the team behind Hand & Stone knew the economy is
bound to turn up soon, so while competitors are pulling back,
they opted to push forward. “Despite these challenges, the
company set about recruiting great franchisees and corporate
staff and setting the foundation for explosive growth from 2010
through 2016,” Leff says.
The bold business move paid off. At the end of 2009, there
were 25 locations across several states. “Today, just six years
later, there are 275 Hand & Stone spas across 28 states and in
Canada. The average spa in the system has experienced more
than 20 percent comparable sales growth every year for the past
four years,” he says.
W
Innovation First
To sustain its growth, the company tries to put innovation at
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September 2016
the center of what they do. “Our single most successful
strategic development was to launch into facials and skin care
before the rest of the competitors in our industry. Skin care
has provided us with a broader consumer base, an opportunity to develop our own products and a way to differentiate
ourselves from competitors. After launching in 2010, skin care
now represents over 25 percent of our business and is fast
growing,” he says.
Number of Years as ISPA Member: “Hand &
Stone has been an ISPA member for as far back
as we can remember. Because Hand & Stone is a
day spa brand, there is no better resource than
what ISPA has to offer.”
Most-Used ISPA Resource: “We follow Pulse
very closely—it’s a great resource and directly
relates to everything we do.”
First heard about ISPA: “When we first started
the company, we attended trade shows and read
ISPA resources devotedly, as it closely related to
our organization and helped us keep up with the
industry trends.”