Heyday, which was founded to bring facials to the masses, is about to expand its reach in a big way. In just one year since announcing plans to franchise, the skincare brand has over 100 agreements signed.
There are currently 10 company-owned Heyday locations (six in New York City, three in Los Angeles, and one in Philadelphia) plus one franchise shop in Bethesda, MD, that opened last August. The company expects to have 20 franchises open this year and another 40 to 50 for 2023.
Markets in the pipeline include Austin, Dallas, Atlanta, Alexandria, VA, Denver, Chicago, and more in existing markets such as Los Angeles and Philadelphia. Heyday also has an eye on international growth down the road.
Sean Bock, President of Franchising for Heyday, sees huge potential for the concept to shake up the $7 billion-dollar-a-year skincare industry. For many, Heyday is an approachable introduction to skincare. In fact, rather than cannibalizing from the overall industry, Bock said Heyday brings in new users. “Twenty-five percent of customers have never had a facial,” he said. “What we are really doing is expanding and democratizing skin care accessibility.”
Heyday hopes to have 300 locations within five years, with at least another 300 markets beyond that. Bock sees an opportunity to approach levels mirroring European Wax Center’s 800 locations or Massage Envy’s 1,200 doors. “Why not Heyday?” he asked. Although the company didn’t reveal dollars, that could add up to volume exceeding $500 million in five years, based conservatively on franchise document projections per door.
Franchising was selected as Heyday’s mode of growth by its founders Michael Pollak and Adam Ross even prior to the pandemic—not a pivot during COVID-19, Bock said, who has experience in franchising from his former post at Drybar. “This is ultimately a service-based business and our success hinges upon the retention and satisfaction of our aestheticians. The longer they stay, the better services they perform,” said Bock, who joined Heyday about 18 months ago to stamp out the company-owned model on a franchise platform. From his experience, he’s seen success when a local operator is invested in the team. “They recognize the power of franchising.”
Last year, Heyday announced a $20 million Series B round of funding led by Level 5 Capital Partners (L5) with participation from existing investors Lerer Hippeau and Fifth Wall ventures. L5 specializes in helping wellness and lifestyle brands grow to scale and has been on both the franchisor and franchisee side of the table. “What differentiates us [from other franchised operations] is the partnership we have with L5. They act differently than most private equity,” said Bock. In fact, about 10 of the locations opening this year will be L5 franchises.
The footprint of Heyday rings in at about 1,600 to 2,000 square feet with six to eight chairs. The average age of clients spans from about 22 to 45, according to Chief Operations Officer Arielle Mortimer, who joined Heyday last November, bringing experience from Kindbody, Revere Co., Jet, and Groupon.
Unlike traditional spas that skew heavily female, the breakout is 70% women and 30% men. “Some customers are guys who have never washed their face before. We have a platform that supports all clients because skin care should be routine for everyone,” said Bock. “We are tapping into an unspoken market.”
The menu, by design, is simple: 50-minute facials with enhancements offered such as Gua Sha, Light Therapy, Microdermabrasion, or a professional peel. An added advantage is that add-on services don’t require more time on either the client’s or aesthetician’s time.
While the executives don’t rule out adding other services, for now they prefer to focus on what they do best. Product sales, however, are big business, with Heyday offering over 40 brands for all facial needs. Each facial is customized with the appropriate back bar products. “Most people purchase a product curated to support their routine,” said Mortimer.
The brand lineup includes Naturopathica, Image Skincare, Pai Skincare, Herbivore Botanicals, Josh Rosebrook, Skye Iceland, Ursa Major, and Moon Juice. About 78% of the products are not sold at Ulta Beauty or Sephora, said Bock. He added that Heyday signed the 15 Percent Pledge, calling on businesses to devote 15% of shelf space to Black-owned brands.
A revamped membership structure, launched last year, helped build repeat business, with 70% of clients selecting the offer, up from 30%.
COVID-19 hit service industries hard, and Heyday was forced to furlough employees. But business is back strong with only a small blip from the Omicron variant, said Mortimer. One learning from the pandemic proved to be a benefit. Heyday used to start all appointments at the top of the hour. Now check-in times are staggered to reduce the number of people in the location at once. “We’ve found this operational change provides more fruitful conversations. There is a chance to build relationships and speak to everyone,” Bock said.
The “Great Resignation” and shortages in general of staffing across the industry has not hampered Heyday. Mortimer said the company offers attractive salaries, benefits, commissions, and training. Start-up costs to open a Heyday range from $574,000 to $755,500, according to documents.
