Manager - we did a performance improvement on the manager and she was not able to improve the performance. We have been looking for a new managers and stylists but so far have no viable candidates. We need to consider an increased salary because the potential manager and stylists we are attracting at the current salary do not have sufficient skills. The current manager has had some medical issues which has added complexity to the situation. In taking this strategy, our goals are to attract stylist who already have a client base to bring to the salon.
The team is very low energy. We have tried to run events there, we have tried a number of contests and promotions to get the energy up in the salon, however it has not been effective to the standard we are looking for.
We have marketing in place and a marketing plan. However getting new customers in with the current team we haven't seen result in retention of the guests. The guest retention numbers are very low at around 15% back in Jan. It has improved to around 22% retention now. We are looking for a retention rate on a new salon for 50% or higher. We have not achieved this with this location yet.
As it stands we do not feel the location will be viable with the remaining capital and additional capital will be needed in order to get the store to viability.
We are looking at other management options and have an important meeting next week with a salon management company who indicates they specialize in making salons successful and profitable. We will keep you posted to see if that will bring any results.
We are also working with a legal team to see what our options are in regrades to the franchise brand and if there is any relief we could obtain from the franchise system itself.