Day Spas and Tanning Salons

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Quarterly Insight, Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 30,900 day spas and tanning salons in the US provide personal care services to clients, including massages, indoor and sunless tanning, skincare treatments, and nail care treatments. Day spas and tanning salons also sell skincare and body care products, cosmetics, candles, vitamins and nutritional supplements, and other retail products. Some day spas also offer hair care services.

Indoor Tanning Health Concerns

Concerns over the health risks of using tanning beds threaten to reduce demand for tanning salons.

Competition for Services

Day spas face competition from other providers of massages and skin treatments, including hotel and resort spas, medical spas, fitness centers, independent masseuses, nail salons, and dermatology practices.

Industry size & Structure

The average day spa has 14 employees and generates over $561,000 in annual revenue, while the average tanning salon has 6 employees and generates about $275,000 in annual revenue.

    • The spa industry in the US has about 21,500 locations, employs 304,800 people, and generates about $12 billion in annual revenue. About 80% of locations are day spas, with the remainder consisting of hotel and resort spas, destination spas, and medical spas.
    • Tanning salons in the US have about 9,400 locations, 60,500 employees and generate about $2.6 billion in annual revenue.
    • US consumers made 124 million visits to spas in 2020, according to the International SPA Association.
    • Most day spas and tanning salons are independently owned and operated. Franchise locations of large chains account for less than 5% of industry revenue.
    • Day spa chains include Massage Envy, Woodhouse Day Spa, Bliss, and Mynd Spa & Salon.
    • Tanning salon chains include Palm Beach Tan, Planet Beach Tan, Hollywood Tans, and LA Tan.
                              Industry Forecast
                              Day Spas and Tanning Salons Industry Growth

                              Coronavirus Update

                              Nov 24, 2021 - Los Angeles Is Enforcing Vaccine Mandate
                              • A Los Angeles City Council ordinance in October that requires proof of vaccination against COVID-19 to enter indoor venues like day spas and tanning salons went into effect on November 4. Businesses that violate the rules can face escalating penalties under the ordinance, starting with a warning for a first violation, then a $1,000 fine for a second violation, eventually reaching a $5,000 penalty for a fourth or subsequent violation. The fines would begin to be enforced starting Nov. 29, according to the ordinance. An amendment that would make it a crime to harass or interfere with any employee trying to enforce the rules was not approved. The requirement will expire when the city lifts its emergency declaration for the COVID-19 pandemic.
                              • Federal health agencies should state publicly that the burden of enforcing mask requirements should not be placed on businesses and their employees, convenience and fuel retailing groups EMA, NACS, NATSO and SIGMA, along with other retail groups, said in an August letter to top government officials. Requiring retail employees, who are trained not to confront shoplifters and to focus on the safety and well-being of employees and customers, to enforce mask mandates “put employees in perilous situations as mask wearing became a heated and politicized issue,” the groups said in the letter to US Department of Health and Human Services.
                              • Many analysts say that businesses should prepare for an upcoming pandemic-related spending shift that is increasingly referred to as revenge shopping. Shoppers will sweep through sectors as pent-up demand is unleashed, according to management consulting firm McKinsey. That has been the experience of all previous economic downturns. One difference, however, is that services have been particularly hard hit this time. The bounce back will therefore likely emphasize those businesses, particularly the ones that have a communal element, such as restaurants and entertainment venues.pping. Shoppers will sweep through sectors as pent-up demand is unleashed, according to management consulting firm McKinsey. That has been the experience of all previous economic downturns. One difference, however, is that services have been particularly hard hit this time.
                              • The federal Equal Employment Opportunity Commission said that employees may be barred from the workplace if they refuse the COVID-19 vaccine. "Requiring a vaccine is a health and safety work rule, and employers can do that," said Dorit Reiss, a professor at the University of California Hastings College of Law. There are, however, some exceptions to a blanket requirement. A collective bargaining agreement may require negotiating with a union before mandating a vaccine. The Americans with Disabilities Act allows workers who don't want to be vaccinated for medical reasons to request an exemption.
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