The coronavirus pandemic has been a one-two punch for the sports-themed Lady Jane’s Haircuts For Men salon chain.
First, sports largely went away at the start of the crisis in mid-March. The chain’s 124 salons across 21 states were left with little more than “SportsCenter” and old games to air on the banks of high-def TVs that fill the waiting areas and that are mounted by each stylist’s station.
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Then came the closure orders as states one by one mandated that non-essential businesses shutter as part of the wider effort to control the highly contagious disease that has now killed more than 22,000 Americans. All of the chain’s salons are closed.
Lady Jane’s owner Chad Johnson bought out a partner of a single salon in St. Clair Shores, Mich., in 2005 to launch the chain. Now, as the pandemic has mothballed a lot of retail businesses, he said he continues to pay his 70 full-time corporate staff while bankrolling a $100,000 fund to aid the more than 1,100 stylists who cut hair at his salons.
“We haven’t laid off anybody and we don’t plan on it, even if this went 90 days,” Johnson said.
He also said the company has applied for federal small business aid made available during the crisis. The $100,000 for the stylists is out of his own pocket and he said he will increase the amount if the crisis extends into the summer.
“I am not an owner or CEO that’s going to hide behind the money I earned the last 10 years to not help the staff,” he said. “This was something done out of my heart. I come from nothing. My mom used food stamps. I know what it’s like to go without and see your family struggle.”
Stylists work on commission at Lady Jane’s. The first stores closed on March 19 when Ohio began shuttering businesses, and the last closed on April 5 when Arizona did the same. On the company website, a pop-up lists each state’s closure and predicted re-opening dates that range from mid-April to June.
“At this point, every store is shut down. Any time somebody is closed 2-3 months, it affects everyone involved,” Johnson said.
Kristina Camaj is a stylist and manager at a Lady Jane’s in suburban Detroit, and she praises Johnson for what he’s doing.
“At first, I was very nervous because I am a single mom with two kids. I didn’t know what to think or expect,” she said. “No matter what, since the day I met him, there is not one time I’ve not had to worry about something. At the end of the day, he’ll help anybody including his (stylists).”
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Camaj said she applied for a grant from Johnson’s $100,000 fund but doesn’t yet know how much she’ll get. She’s got some savings to live off of in the meantime.
“Because I have the two kids, I always have a backup plan in case something like this happens. I do have an awesome family in case I need help,” she said.
Camaj has no plans to seek work elsewhere. She said she appreciates how she’s been treated and knows business will be good once the crisis is past – people need their hair cut.
“My heart is set with Lady Jane’s. I have loyal customers who are waiting for me,” she said.
The pandemic also has long-term business effects for the salon chain. With no money coming in, Johnson’s strategy to expand his chain is on hold. The goal was to open 20 stores in 2020, but that now will likely be 11 to 13 stores, he said.
“We’re continuing to grow even as the virus is going on. We plan on getting into three new states,” Johnson said, adding that those states are Alabama, Kentucky and Nevada.
The chain uses the revenue generated by operations – all those haircuts – to finance expansion.
“I have zero debt. I have no bank loans. I don’t need (outside) funding,” Johnson said.
While he doesn’t discuss the financial details of his company, it clearly generates millions of dollars to fund expansion from one store in 2005 to 124 today, without taking on debt. The business success is rooted in catering to men using sports and male-specific services in addition to haircuts, such as beard and mustache trims, along with scalp, neck and shoulder massages. In his ownership tenure, he’s had just one store close for good, Johnson said.
The interior of each store is sports-themed with lots of framed art of local and national sports icons and teams. The waiting areas are filled with recliners that have team logos embroidered into the leather. Boxing gloves hang from the corner of the mirrors at each hair-cutting station. Each stylist’s equipment is stored in metal drawers that look like black Craftsman tool chests.
The store Johnson bought in 2005 didn’t even have windows open to the street, he said. He opened it up and crafted the sports theme as part of a long-term vision to create what the chain is today – a sporty men’s grooming alternative to traditional barbershops, and to general salon chains such as Great Clips and the 10,000 stores owned by Regis Corp. (Super Cuts, Borics, MasterCuts, etc.).
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“I turned it all into sports. As soon as I got into it, I knew I was going to grow it. I knew I wasn’t going to have one, two or three stores,” Johnson said.
The sports angle is intended to get men through the door, Johnson said, but the service is designed to keep them returning. That’s why he isn’t particularly concerned about the lack of sports.
“We’ve always focused on the training of the stylist and getting the best experience getting your haircut,” he said. “As much as we want sports on, ultimately Lady Jane’s is known as the best haircut you can get with the best experience.”
His rivals on the sports-themed men’s grooming market are mostly franchised-based salon chains such as Austin-based Sport Clips that has expanded to 1,900 stores nationwide, and smaller outfits such as Irving, Texas-based Knockouts that’s grown to 50-plus stores.
Sport Clips, which counts former Cowboys tight end Jay Novacek on its board of directors, has furloughed a chunk of its 185-person corporate staff that supports its mostly franchised business. All of its stores are closed.
“In addition to our stylists who worked in our local stores, we, unfortunately, had to furlough a substantial number of our support team members, and on orders from Williamson County we have closed our offices,” a Sport Clips spokeswoman said via email. “We have provided resources to help those impacted by the coronavirus to apply for benefits available to them. Those who remain have taken reductions in their salaries so we can retain as many as possible to plan our rapid ramp-up back to normal operations when it is safe to do so.”
Unlike Lady Jane’s, most Sport Clips stores are locally owned by franchisees. The company said it’s making plans for helping the salons once the pandemic is over.
“We are working diligently with them to provide informational resources that will assist them during the time the stores are closed and will enable them to re-hire stylists and quickly ramp-up once it is deemed safe in their local markets for our valued stylists and clients to return to the stores,” the company said.
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When the crisis is over, people will need haircuts and the chains that survived will benefit. Lady Jane’s, which is a heavy marketer and at times has had formal sponsorship relationships with local pro sports teams, is running social media contests for free haircuts for a year – once they reopen.
Johnson also has been investing in other avenues to promote his business. A couple of years ago, he spent a reported $525,000 to build out a 1,200-square-foot radio studio at his chain’s 88,000-square-foot corporate headquarters and has a deal with a radio chain for stations to do remote broadcasts. The deal includes cross-promotion on air.
Johnson owns all of his salons rather than franchising. He likes the control and consistency, he said, and he has good relationships with the many landlords from which he leases salon space.
“There’s nothing much anyone can do in a situation like this,” he said. “Our track record as being a great tenant, a great business, is something we take pride in.”
(Top photo: Bill Shea / The Athletic)
