Hair Care Services NAICS 812111, 812112

Dec 24, 2025 - Some Salons Shift to Value Menus

• Hair salons are increasingly adopting “recession menus” that offer build your own, lower cost service packages as clients stretch budgets and delay discretionary treatments, according to a recent MPR Report. In Mankato, stylists report slower bookings, shorter scheduling windows, and clients opting for lower maintenance styles, reflecting broader economic pressures including inflation, stagnant wages, and weakened consumer confidence. According to University of Minnesota marketing professor Akshay Rao, reduced demand for services like haircuts, massages, and manicures aligns with declining confidence and heightened uncertainty, though impacts vary across income groups.
• Consumer sentiment in December 2025 showed mixed signals, with the University of Michigan’s index rising 3.7% month over month even as overall confidence remained nearly 30% below the prior year, suggesting continued caution in discretionary spending. The Conference Board’s Consumer Confidence Index fell to 89.1, reflecting weaker views of current business and labor market conditions and a shift in consumer behavior toward essential services and lower cost purchases. Notably for hair salons and other personal care providers, planned spending on services such as beauty and personal care remained comparatively resilient, continuing to trend upward on a six-month moving average basis even as consumers pulled back on big ticket items and travel.

• Boulevard’s 2025 consumer survey highlights how Gen Z and Millennials are reshaping the salon industry, with digital engagement now central to client acquisition, according to Salon Today. Some 55% of Gen Z and 47% of Millennials say Instagram or TikTok activity is very or extremely important in deciding where to book, and 20% of Gen Z look to social media first when choosing providers. Convenience is also important: 67% of Gen Z and 64% of Millennials have abandoned salons due to clunky online booking. Loyalty hinges on personalization, with 66% of all respondents citing remembered preferences as essential and 55% expecting tailored add ons or memberships. Service quality remains decisive, as 71% would not return after poor results or negative staff interactions. Communication expectations are also shifting, with 41% of clients expect same day follow ups, and 44% prefer texting. For hair care and salon operators, these data points underscore the need to integrate seamless digital booking, personalization, and proactive communication into core business strategy.
• According to the National Law Review, the FTC’s decision in September 2025 to leave non-compete enforcement to state law brings clarity but also complexity for hair salon owners navigating employee agreements. With over 30 states imposing varying restrictions on non-competes, ranging from full bans in places like California to strong enforcement in states like Florida, salon operators must tailor contracts to local legal standards. This is especially relevant in a high-turnover industry where stylists often move between salons or start their own businesses. As states continue to reevaluate non-compete policies, salon owners should consult legal counsel to ensure agreements remain enforceable and compliant. The ruling underscores the importance of strategic workforce planning and competitive retention practices in the evolving regulatory landscape. The FTC had proposed a ban on most non-compete agreements, which was scheduled to go into effect in September 2024, before facing multiple legal challenges to the ban.