Choosing the best location for a franchise is one of the most important requirements when opening a salon. The location directly influences the ability to attract customers, maximise visibility and generate sustainable revenue.
It is not simply a matter of choosing a location; the right selection must be based on a detailed analysis of several factors that can affect long-term profitability.
In this Milano Cosmetics article, we break down the key elements to consider when making this decision. While there is no ‘perfect’ location that works for all franchises, certain criteria are critical to finding a suitable and competitive location.
The importance of the location of a franchise
The success of a hairdressing franchise depends not only on the quality of the service or the strength of the brand, but also on being in the right location. A strategic location can make the difference between a thriving business and one that is struggling to survive.
In a hair salon franchise, proximity to densely populated areas, accessibility on foot or by car, and visibility from busy roads are crucial.
In addition, the location has a direct impact on the fixed costs of the business, such as rent or purchase of the premises, and on the ability to attract the target audience.
A location in an area with high pedestrian traffic can significantly increase spontaneous visits, while being close to anchor centres (such as transport stations or shopping centres) can generate a steady flow of customers.
On the other hand, local competition should also be taken into account. Being surrounded by many hairdressers may saturate the market, while the absence of competitors may indicate low demand in the area.
Key points for choosing the best location
When selecting a location for your hairdressing franchise, it is essential to follow a series of steps and make a thorough analysis. Here are the most important points to consider:
- Traffic and visibility: Look for areas with high pedestrian or vehicle traffic and good visibility. Premises located on main streets or in areas with a high flow of people tend to attract more customers.
- Accessibility: Make sure the venue is well connected, either by public transport or with parking available for those arriving by car.
Assess the area
When choosing a location, the first thing to do is to analyse the surroundings. Identifying whether it is a high-end or low-end shopping area is very important. Main streets in big cities or shopping centres are usually more expensive, but they also guarantee a greater influx of customers.
Don’t forget to observe the flow of people during different times of the day and days of the week. This will help you understand foot traffic behaviour and its impact on your business.
Study the competition
Before making a decision, research hairdressing franchises and other similar businesses already operating in the area. Proximity to direct competitors can be a double-edged sword: on the one hand, it can attract more customers if demand is high, but it could also dilute your ability to attract customers if the market is saturated.
Assessing the level of competition will allow you to decide if you can stand out with added value or if it is better to look elsewhere.
If there are already successful hairdressers in the area, look at what services they offer and whether there are any opportunities for differentiation for your business. Consider offering something that others do not, such as additional services or a unique customer experience.
Develop a potential customer profile
Knowing your ideal customer is essential in determining the best location. What type of customer do you want to attract?
For example, a franchise that offers premium services should be in an upper-middle income area, where customers value quality over price. On the other hand, a hairdressing salon focused on a younger audience might be more successful in areas close to universities or sports centres.
Also, research the consumption habits of people in that area: do they prefer fast and cheap services or are they looking for a more exclusive experience? Aligning the location with the customer profile is a key step to ensure that the business thrives.
Analyses the purchasing power of the area
Finally, make sure that the purchasing power of the area is in line with the prices and services you plan to offer in your franchise.
In areas with high competition, it is vital that your prices are competitive, but you also need to make sure that the economic profile of the residents is appropriate for the price range you are targeting.
If you choose an affluent area, you are likely to be able to set higher prices and offer luxury services. On the other hand, in less affluent areas, more affordable prices and basic services may be the best strategy.
In summary, choosing the ideal location for a hair salon franchise is a strategic decision that can determine the long-term success of the business. This process requires a detailed analysis of the environment, where factors such as visibility, foot traffic, and local competition are essential to attract customers. It is important to assess the accessibility and purchasing power of the area to ensure that your offer is aligned with the needs and spending power of the target audience.
Taking into account the demographics and consumer behaviour in each area will allow you to adjust services and prices optimally. Although high-traffic areas have a higher cost, the potential return on investment could justify this investment if the strategy is well defined.
Ultimately, a carefully selected location will contribute to the sustainability and growth of your salon franchise, helping to maximise the chances of success in a competitive market.
