Male grooming businesses for sale

Two branches within New Zealand’s largest and fastest growing men’s grooming chain have been placed on the market for sale.

The Takapuna and Milford branches of the franchised haircut and grooming boutiques known under the BarberShopCo brand were among the cornerstone sites for what is now a rapidly growing national empire.

Founded in 2015, the BarberShopCo network now encompasses 17 sites in Auckland, two in Hamilton, branches in Cambridge, Tauranga and Napier, with venues opening in New Plymouth and another in Auckland in September.

The Takapuna and Milford BarberShopCo businesses are now being offered for sale by negotiation through Bayleys Auckland. Salespeople Wayne Scurrah and Mark Morphy said the two locations were being offered for sale as one combined entity – operating seven-days-a-week.

“Back in 2014, the company’s founders saw that female-focused hair salons were capturing significant market share in men’s services because the typical barbershop operations around at that time simply weren’t up an acceptable professional standard befitting of the 2000s,” Mr Scurrah said.

“As a result, BarberShopCo was established to provide men with a salon experience, including a cut-throat razor shave, in a male-focused environment. The parent company’s vision is to deliver a world-class customer experience that is un-matched in New Zealand.

“Behind the scenes, the franchisor has invested in recruiting, staff training systems, and developing management policies and procedures reflective of a franchise organisation where consistent delivery of its unique client experience process is paramount.”

Mr Morphy said that since starting out as ‘haircut and shave’ purveyors, BarberShopCo’s operations had grown to encompass development of its own customised range of grooming products – ensuring retail sales are integrated into the client service.

“So not only does a BarberShopCo outlet derive revenues from delivering a haircut and shave, but it then has additional sales opportunities from the likes of shaving and hair-care products,” Mr Morphy said.

“Under the BarberShopCo model, it’s about owning the customers’ complete grooming service and retail experience.

“The business model plays on the convenience factor for customers, which is enormous…. where clients can source all their personal grooming product needs as part of an interaction with an expert rather than having to source products as part of the weekly grocery shopping.”

BarberShopCo has exclusive distribution rights for such premium imported products as equipment cleaning liquid Barbicide, and King Brown hair care treatment. In addition, the chain has created its own house brand under The Bowery label. All brands and retail products delivered the business what Mr Morphy called “exceptional margins” compared to other retail sectors.

“By utilising the combined purchasing power of the franchise structure, the company is able to provide its franchisees with healthy wholesale margins on their retail stock,” Mr Morphy said.

BarbershopCo Takapuna has a lease on its Lake Road location running through until 2022, with the landlord willing to discuss on-going rights of renewal with any potential new owner of the business.

Meanwhile, BarbershopCo Milford has a lease on its Lake Road location running through until 2021, with the landlord there also willing to discuss on-going rights of renewal with any potential new owner of the business. Mr Scurrah said both shops had exceptional fit-outs included in the sale - which would cost in the vicinity of $280,000 if setting up from new.

“The brand is a very slick operation – with stores outfitted to a replicated set design and service delivery format which features white tiled walls, wooden-framed mirrors at each workstation, classical-styled barbers chairs with branded towels over the arm rests when not in use, and staff attired in BarbershopCo’s branded full apron uniform,” he said.

“The model is designed so that no matter which BarberShopCo outlet a customer walks into, they received exactly the same degree of attention and service in a familiar environment.”

Trading accounts from the combined Takapuna and Milford BarberShopCo business reflected a forecast growth of eight percent for the coming full financial year compared with the just completed financial year. Mr Scurrah said that the Takapuna/Milford business operating at full staff capacity was forecast to deliver an owners surplus well in excess of $200,000 in the current financial year.