Sharkey’s over the past 18 years has continued to find ways to deliver a passive franchise brand that protects the investor. Our absentee ownership model is helping our franchisees to focus on their families as well as revenue. In this time of turmoil we truly understand that you, our potential partners, are searching for options and ideas for your future. For our current franchisees, they all understand that we are just deferring haircuts at the moment and they will all be back like a back to school rush in the coming weeks.
As Founder & CEO, we are all in this together and Sharkey's is committed to helping you and your families have a bright future. We thought it would be useful to share with you 10 reasons why our franchise is doing so well and how it is reacting to the current market conditions. Please let us know if you find this helpful. We like replies! Again we are all in this together and we are looking for the right message to put out during these scary times and just want to be 100% sure we are not being distasteful.
Be safe and family first...
Linda & Scott Sharkey
-Founder & CEO
Top 10 Reasons Why Sharkey’s Cuts for Kids Is a Recession Proof Franchise
(Based on 2008 recession data & franchisees)
1. Hair always grows so kids will always need a haircut. It’s like a utility business; it’s a need not a want.
2. Kids visit Sharkey’s for a fun experience – It’s like a sweet treat and an excursion for moms.
3. When times are tough & unpredictable, people cherish 15-30 minutes of happiness with their kids. People are always going to spend money on their kids as we have proven this time and time again for over 18 years (Sharkey’s experienced an uptick in business within our salons in the 2008 recession).
4. Even in a recession parents want their family to present well - their appearance is their cover story.
5. There is no risk with wastage – Even if we have to close down for a few weeks we don’t lose money on ingredients. We are just deferring haircuts for the time being while the public deals with a given situation.
ex. Similar to a snowstorm when schools need to close. They all come back once the icy roads are safe to drive. Our business doubles the following week and monthly revenue takes no hit.
ex 2. If Sharkey’s is closed for a period of time so are the barbershops in town. So no loss of business (we have proven this for over 18 years). There is zero competition when we are closed. If the roads are bad then moms & dads are not driving anywhere for a kids haircut.
6. You cannot get a haircut on Amazon. Haircuts cannot be given online or virtually.
7. Kid’s haircuts are not seasonal so they come in at all times throughout the year.
8. No reinvestment with Sharkey’s after your first 5 years. When evaluating a franchise, you need to evaluate if the franchise you are thinking of investing in will make you money in years 6-10. Not years 1-5. Is the concept trendy, will I need to reinvest in new equipment or technology after maybe I have made my ROI back in 5 years? The Sharkey’s model is approximately 90% the same as it was back in 2002, other than upgrades in technology, gaming stations, and bigger TV’s.
9. Generally speaking, rents are low and the franchise investment is low so Sharkey’s can weather the storm of a closure or recession very quickly (Proven and reinforced in 2008).
10. Sharkey’s will experience a very large Back to School rush once the current threat is over.
*What new locations were represented this week at training?
3 - Arizona
1 - Massachusetts
2 - Virginia
3 - California
2 - Florida
1 - New Mexico
2 - Pennsylvania
1 - New York
*3 last minute cancellations (2 - Texas & 1 - California)
Even with the current global situation the energy & excitement in the room was huge. BIG!! Our new franchisees shared with us how eager they are to open and how excited they are about where the Sharkey’s brand is going. Thank you everyone for making the journey to CT this week!
Sharkey's Franchising Co. founded in 2001 by Linda and Scott Sharkey