We are writing to give you an update on your investment.
Your market was hit with a hurricane and bad rain storms in the last month. The salons had to close several days for several weeks in a row totally about 4 days of missed business due to flooding in the streets, loss of power and loss of internet.
The locations are back open and there was no damage to your salons.
You have two locations currently, Independence and Masonboro Loop. Independence is performing well and is a strong location. We have a plan for breaking even at this location that we feel is on track.
Masonboro Loop is a more challenging location. This location has extremely low guest count. We have tried many things to bring in additional guest and have seen modest spikes here and there, but no significant gains. I personally called many of your customers to invite them back into the store and to thank them for visiting. We were able to find a gentleman in the community who has access to a Facebook community page. Your general manager Regina has personally met with him to try to gain access to his network of referrals. Overall, the calls went really well. The customers gave great reviews about their service and the stylists. We had initiated some of this specialized marketing right before the storms hit so it is difficult to measure the impact of it. Thankfully the location has very low expense as well.
We are paying close attention to this location and have focused additional marketing efforts to getting it to break even and then to profitability. Right now we do not feel that your investment is at risk, but we are maintaining a close watch on it. We are engaging in a whole host of marketing and training activities to drive traffic into the location.
At this time we do not have plans to open your third location until your first 2 locations have stabilized and are profitable. Please let me know if you have any questions.