Salon brand Great Clips established itself as a franchise powerhouse in the 1980s. After 40 years, it’s still styled for success
Some of the most iconic franchise brands began as a way to fill a niche, or offer a service the market wasn’t yet meeting. The conception of Great Clips was no different. In 1982, the brand’s founders, David Rubenzer and Steve Lemmon, were working as stylists for a company called The Barbershop, a high-end retail salon concept with a footprint across Minnesota’s Twin Cities.
Rubenzer noted a missing opportunity in The Barbershop’s cosmopolitan clientele. He realized there was a class of people who just wanted a quick, convenient, and competitively-priced trim. Between them, they had the background and experience to get the idea off the ground. Lemmon handled the operations, while Rubenzer was the barber. Co-owner Ray Barton came later as a franchise expert with a background in the real estate space.
“The idea caught on,” says Yvonne Mercer, Great Clips’ chief operations officer. The first location opened on the campus of The University of Minnesota, a smart move as it provided the exact clientele that the new value brand was trying to reach.
“Being on campus, you can offer a value-priced haircut,” notes Mercer. “College kids don’t generally have much money, and they wanted something quick and convenient.”
That hasn’t changed very much; there’s still a Great Clips salon near the campus today.
Initial growth was speedy, with the founders calling on friends and family to fill the gaps as franchisees and at the head office. Barton’s sister, Rhoda Olsen came on in 1984 as a part-time training consultant—developing manuals and programs for franchisees and stylists before climbing the ranks to eventually take on the CEO role up until 2018.
Over the years, Great Clips has grown its Canadian footprint to over 150 locations helmed by 45 local franchisees. It’s become nothing short of a household name, synonymous with convenient, quality haircuts.
And even after 40 years, the fundamental driver of Great Clips’ business hasn’t changed. The brand’s goal is still to provide its customers with quality, affordable haircuts as easily as possible. “Everything we do, we put the customer at the centre,” notes Mercer.
Souped-up styling
In the modern era, this means mixing in technology, to make accessibility a little bit easier. In 2011, the brand launched an online check-in service so customers could conveniently get in line for their cut from the comfort of their homes. Following that was an app to make the process even more convenient and accessible.
“We continue to make improvements to the app experience. It’s one of our core technology pieces right now, even from a marketing standpoint,” says Mercer. “We’ve engaged in digital marketing and email marketing. We’re in multiple channels, getting all the potential customers we can possibly reach. And those [channels] are always evolving.”
Mercer notes the benefits of marketing technology in Great Clips’ continued growth—understanding customer’s behaviours means being able to target offers to the right people at the right time, depending on where they are in their haircut cycle.
In addition, the influx of technology has revolutionized the brand’s training programs, which evolved from once-a-month, in person programs to entirely virtual training delivered on demand.
Of course, Great Clips, like all hair salons, was impacted by the pandemic. While it positively initiated new tech developments that created efficiencies across the system, it also challenged the business model in several different ways. During the height of the pandemic, fewer stylists applied for jobs. Those that did wanted to work fewer hours. That meant locations had to reduce operating hours, which in turn translated to less convenience for customers.
The response was to step up recruiting and training programs and resources. The brand revamped its cosmetology training programs and invited customers back to salons with bold offers.
Tapered training
New franchisees in the Great Clips system go through a well-rounded initial training experience, including three days of in-person training in Minneapolis, along with a robust online component, including webinars and self-directed training modules on an award-winning education platform.
“When they sign their franchise agreement, they automatically join the new franchisee support program,” says Mercer.
The new franchisee also gets step-by-step guidance on opening through the first 26 weeks after opening.
“It’s a collaborative effort between multiple departments and there are touchpoints every week until they have their second salon open,” explains Mercer.
The training is designed to ensure that people from a wide variety of backgrounds can learn what it takes to be a great franchisee “Franchisees don’t need any cosmetology experience at all,” says Mercer. “They hire a manager that has the technical skills, so they’ve got support to build from while they learn the business.”
Great Clips franchisees come from a mix of professional backgrounds, and despite not needing haircutting experience, business management experience in recruiting and hiring is a plus.
Nathalie Paradis, a Toronto-based franchisee, had management experience in droves before she started her franchising journey. As a corporate professional and mother of two, she spent half of her year travelling. Her husband had a similar corporate career. One particular moment taught her that it was time to make a change. She was in Calgary, waiting for a return flight to Toronto. The plane arrived and the first person to disembark was her husband, setting off on a business trip of his own.
“We kissed and said bye,” recalls Paradis. “I knew that for the next five hours, if there’s any emergency with my children, there’s no one [to help them].”
It was time to make a change. Eager to strike a work-life balance, she looked to franchising as a way of going into business with some added support and the flexibility to stay close by her family when needed. But she knew it wouldn’t be easy. As a former business owner, she knew the risks and the work it takes to make a small business successful.
“It’s a different kind of stress and work than a corporate career,” she says. After interviewing other franchisees and looking into the company culture, Paradis decided that a Great Clips franchise could be the ideal business for her.
“The Great Clips philosophy—giving back to the community, treating your employees well, and teamwork—those were all things that appealed to me.”
According to Mercer, those are the qualities prized in franchisees as well. “The greatest franchisees in our system are the ones that truly care about their staff and want to provide a great place for people to work, providing them with opportunities that they may not have otherwise had.”
One of the keys to successful franchising, she notes, is the ability to make connections with one’s staff and the community they operate in. Paradis’s location, for instance, does a yearly back-to-school haircut drive in partnership with Community Care of St. Catharines and Thorold, a charity organization. Creating successful staff and local relationships isn’t limited to franchisees with a business background, though. Great Clips also has franchisees who come from a hair background too. Mercer says the brand has franchisees and corporate employees who started as stylists and rose through the ranks to salon manager, area manager, general manager, and beyond.
“We have quite a few people in our system that started at the salon level, and they became franchisees, which is the ultimate goal for them. It’s really fun seeing that happen,” says Mercer.
“Great Clips is known for how much support we provide our franchisees. That’s one of our hallmarks,” Mercer says. On top of inter-franchisee support, the brand has about 20 task forces and committees, sharing advice and collecting franchisee input based on regional experiences.
“When you do your own thing, you’re alone,” explains Paradis. “With a franchise, you have all the people at the head office working for you. They are there to help anytime you have questions.”
She adds that although starting a business is no walk in the park, it’s very rewarding.
“It involves risk, human resources abilities, and time to work on your business. Great Clips offers and delivers great training and support—they know the business inside and out, so listen and follow the system to the best of your abilities. They will make you part of a winning team if you’re willing to take the time and energy to develop each unit into a world-class brand,” says Paradis.
Coast-to-coast cuts
Looking to the future, Great Clips is working to capture additional growth in Canada, increasing the brand’s “share of hair,” as Mercer calls it. The brand is already well situated in Toronto and Vancouver, but Mercer says the brand would like to move into Manitoba, due north of its Minnesota birthplace and grow a strong presence in the national capital region of Ottawa, as well.
Now, Great Clips is moving toward 5,000 units across Canada and the U.S. by 2030 and is working to welcome new franchisees and customers alike. The brand has an ambitious goal to open 100 franchise units in 2025.
Having seen the company through a period of growth from 400 salons to nearly 5,000, Mercer knows well what makes a successful Great Clips location. She says incoming franchisees should be prepared to make connections with their communities and build a great culture within their teams.
“Franchisees are most successful when they understand that the customer is at the centre of everything they do.”
