Nail 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 26,300 nail salons in the US provide nail care services, such as manicures, pedicures, and nail extensions. Manicures and pedicures account for over 85% of industry sales. Nail salons may also offer skin care, hair removal, or other spa-related services. Specialty services include waxing, eyebrow shaping, massage, wraps, reflexology, and eyelash services. Nail technicians may be employees or may rent booth space from the salon and act as independent operators.

Competition From Alternative Service Providers

Nail salons face competition from a variety of alternative service providers, including full-service beauty salons, spas, and clients themselves.

Health Risks For Workers

Nail care services expose workers to chemicals from polishes, removers, and glues, such as formaldehyde, toluene, and methacrylate compounds.

Industry size & Structure

The average nail salon operates out of a single location, employs 3-4 workers, and generates around $312,000 annually.

    • The US government reports over 26,300 firms that employ 102,400 workers and generate $8.2 billion in annual revenue. Non-employer statistics, which cover the self-employed and businesses with no paid employees, report over 262,200 establishments and over $9.1 billion in annual sales. Non-employer statistics cover nail technicians who rent booth space from individual establishments and act as independent operators.
    • The industry is highly fragmented; the top 50 companies account for less than 3% of industry revenue.
    • The nail salon industry includes small chains, franchises, and independent operators. With nearly 800 locations, Regal Nails is the largest franchise in the US and operates locations in Walmart stores.
    • Many business owners are immigrants. Vietnamese and Vietnamese-American owned salons dominate the industry, although Korean immigrants have established a stronghold in New York City. Vietnamese-owned salons account for about half of the industry.
                            Industry Forecast
                            Nail Salons Industry Growth
                            Source: Vertical IQ and Inforum

                            Coronavirus Update

                            Apr 28, 2022 - States Drop Mask Mandates
                            • Demand for nail salon services may increase as pandemic conditions have improved and restrictions have eased. Hawaii, the final holdout among states with indoor masking mandates, let its mask mandate expire on March 25. The Centers for Disease Control and Prevention (CDC) still recommends that masks be worn in areas of substantial or high transmission, regardless of vaccination status.
                            • Twenty-three states prohibit proof-of-vaccination requirements for entry to businesses, including nail salons. Twelve states -- California, Colorado, Connecticut, Louisiana, Massachusetts, Minnesota, Nevada, New Jersey, New York, Rhode Island, Virginia, and Washington — have digital apps available for vaccine verification. Some major cities that had required proof of vaccination for indoor dining – including New York, Los Angeles, San Francisco, Seattle, Philadelphia, and Boston - have since removed the requirement.
                            • New COVID-19 cases are decreasing nationally, and nail salon patronage may increase. In late April 2022, the CDC announced that according to the agency’s research, about 60% of the US population had been infected with COVID-19 by February 2022. Some medical experts suggest the high rate of infection and the resulting increase in immunity among the US population may signal a new phase where infections cause less and less severe illness.
                            • Scientists who study aerosols, air flow, and ventilation say that barriers intended to protect against coronavirus transmission rarely help and probably give people a false sense of security, according to The New York Times. Research suggests that in some instances, a barrier protecting a clerk behind a checkout counter may redirect the germs to another worker or customer. Rows of clear plastic shields, like those you might find in a nail salon or classroom, can also impede normal air flow and ventilation. Erecting plastic barriers can change air flow in a room, disrupt normal ventilation, and create “dead zones,” where viral aerosol particles can build up and become highly concentrated. A study published in June and led by researchers from Johns Hopkins, for example, showed that desk screens in classrooms were associated with an increased risk of coronavirus infection.
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