Creating chair space to rent for Hairdressers/ Beauticians with the impending empty high street shop

[John D1994]

Hi there,

My first post so I will give some background into myself, I work part time for the family business, which now mainly revolves around residential properties but we still have a few retail shops in relatively prominent locations across the North west. Over the last few years as I'm sure everyone has observed, high street rents are stagnant and good tenants are becoming harder to find. We are therefore looking to try a new approach to renting out the properties by turning them into barbers/hairdressers/salons and then renting chair space.

Coming from a property background there is obviously no experience within any of these sectors. Any help/ suggestions in regards to the feasibility of the idea would be welcomed.
What are the normal revenue streams alongside renting out a chair in any of these scenarios. (Rent is currently 25k, 20k and 19k pa, so looking to be grossing in the region of 45-50k a year per shop from chair rental and other add ons so any ideas would be appreciated.

I've probably left a lot out, feel free to get in touch if so as would appreciate talking to someone with experience in this sector.

Regards
John

 

[Scalloway]

There was some discussion of this subject in this thread.

https://www.ukbusinessforums.co.uk/threads/starting-a-barber-shop-business.405991/

 

[Mr D]

Hi there,

My first post so I will give some background into myself, I work part time for the family business, which now mainly revolves around residential properties but we still have a few retail shops in relatively prominent locations across the North west. Over the last few years as I'm sure everyone has observed, high street rents are stagnant and good tenants are becoming harder to find. We are therefore looking to try a new approach to renting out the properties by turning them into barbers/hairdressers/salons and then renting chair space.

Coming from a property background there is obviously no experience within any of these sectors. Any help/ suggestions in regards to the feasibility of the idea would be welcomed.
What are the normal revenue streams alongside renting out a chair in any of these scenarios. (Rent is currently 25k, 20k and 19k pa, so looking to be grossing in the region of 45-50k a year per shop from chair rental and other add ons so any ideas would be appreciated.

I've probably left a lot out, feel free to get in touch if so as would appreciate talking to someone with experience in this sector.

Regards
John

Unless shops are quite large then may struggle getting sufficient chair rental fees.

 

[John D1994]

Unless shops are quite large then may struggle getting sufficient chair rental fees.

Probably looking at around 5-6 chairs per shop, with potential to convert upstairs flats as well. Was just trying to find if anyone had done it before, but looks like its maybe a none runner

 

[MOIC]

What have you budgeted for the fit-out cost for a hairdresser with 6 chairs?

 

[John D1994]

What have you budgeted for the fit-out cost for a hairdresser with 6 chairs?

This is more of a "beer mat" idea shall we say, just more pre- empting the potential for empty shops so we haven't looked at it in that much detail.

Some quick calculations based on a minimum of £30 per day rental- 6 days a week would be a gross of 51k purely on chair rental. So a fit out in the region of 30-40k could be justifiable.

Just looking to see if anyone on here has this as a tried and tested business model to point out any areas of concern or any good suggestions.

 

[Darren_Ssc]

Was just trying to find if anyone had done it before, but looks like its maybe a none runner

By coincidence, I was talking to my barber (back in the days when they were open) about this. I mused why there were so many barbers paying rent and stuff on individual units when a lot of the overheads could be pooled within a larger building.

He's an old-timer and reckons it's an idea that gets tried out now and then but never really takes off. Apparently, once a barber, or hairdresser, has established a client base they become very protective about it. Which is understandable.

 

[Alison Moore]

Before lockdown we used to use a walk in barber/hairdressers with a similar business model. I got to know some of them quite well and chatted to them. Each hairdresser would rent a chair for the day. However morale always seemed to be really low and they had a high turn over of staff. Some of the hairdressers (esp those with young children) said it worked for them as they liked the flexibility it gave them, however most of the others left as soon as they were offered a permanent post in a more established salon. It seemed to only be a stop-gap solution for most of the hairdressers.

 

[alan1302]

said it worked for them as they liked the flexibility it gave them, however most of the others left as soon as they were offered a permanent post in a more established salon. It seemed to only be a stop-gap solution for most of the hairdressers.

Think a lot of people like the thought of working for themselves but then realise it's not easy and perfer a steady wage.

 

[John D1994]

Before lockdown we used to use a walk in barber/hairdressers with a similar business model. I got to know some of them quite well and chatted to them. Each hairdresser would rent a chair for the day. However morale always seemed to be really low and they had a high turn over of staff. Some of the hairdressers (esp those with young children) said it worked for them as they liked the flexibility it gave them, however most of the others left as soon as they were offered a permanent post in a more established salon. It seemed to only be a stop-gap solution for most of the hairdressers.

Thanks for the reply Alison, even with the high turnover of staff did they maintain a relatively high number of chairs filled throughout the year? and did they ever mention how much they paid per day/week?

 

[Alison Moore]

even with the high turnover of staff did they maintain a relatively high number of chairs filled throughout the year? and did they ever mention how much they paid per day/week?

Yes, actually despite what I said about morale, most chairs were full most days (we lived nearby so often walked by them), but I never had a conversation with them about how much they paid.

 

[tony84]

Dont give up on the high street just yet.
I am in the north west and in January I was looking at getting a shop/office on the high street. The thought is still there but obviously on hold a little.

People will still need jobs and people will still want their own businesses and people will still use the high street - potentially more so. I know where I live the butchers and green grocers have never been so busy as people are avoiding supermarkets. People also queue up outside the local little boots rather than going to the supermarket.

 

[John D1994]

Dont give up on the high street just yet.
I am in the north west and in January I was looking at getting a shop/office on the high street. The thought is still there but obviously on hold a little.

People will still need jobs and people will still want their own businesses and people will still use the high street - potentially more so. I know where I live the butchers and green grocers have never been so busy as people are avoiding supermarkets. People also queue up outside the local little boots rather than going to the supermarket.

I agree with this some what but from an investment point of view owning high street property now just isn't that attractive, rents are becoming extremely stagnant, most prospective tenants are expecting discounts and payment terms that you'd expect on residential. So just think its possibly time to try and diversify.

I'm by no means a high street retail expert but I think it would be dangerous for businesses to set up and judge future sales based on the small lockdown bubble. Supermarkets have dominated for the last 20 years and once the dust has settled i unfortunately believe they will return as king, the sole trader just can't compete with the 2-3% margins the likes of Aldi operate at.

 

[John D1994]

Yes, actually despite what I said about morale, most chairs were full most days (we lived nearby so often walked by them), but I never had a conversation with them about how much they paid.

Thanks for that, is definitely some food for thought on the idea then, Think once lockdown ends i will be getting my haircut at a different barbers every week in the name of market research!

 

[Darren_Ssc]

I agree with this some what but from an investment point of view owning high street property now just isn't that attractive, rents are becoming extremely stagnant, most prospective tenants are expecting discounts and payment terms that you'd expect on residential. So just think its possibly time to try and diversify.

I have discussed with a couple of landlords the possibility of converting shop space into small flexible office spaces. Having worked in shared offices in the past I know there is demand for relatively cheap and cheerful office space without any long-term commitments.

Being in the centre of town has it's advantages also as many alternative options are out-of town and somewhat disconnected. Obviously pubs and cafes being shut ATM is a big downer but that won't be forever.

The only negative I've encountered so far is the attitude of landlords who are somewhat stuck in the past. They really want things to carry on as they did before.

 

[tony84]

I'm by no means a high street retail expert but I think it would be dangerous for businesses to set up and judge future sales based on the small lockdown bubble. Supermarkets have dominated for the last 20 years and once the dust has settled i unfortunately believe they will return as king, the sole trader just can't compete with the 2-3% margins the likes of Aldi operate at.

Completely agree, but I do think those retailers (butchers/bakeries/green grocers) will come out of this better in the longer run.

There are 2 butchers near us, one of them is really really good and has won loads of awards and also does other things beyond meat - eg curries, stir frys etc. People who were not their customers will now know what they do and how much better the quality is over supermarket food, they may have even built up a rapport with the shop keeper - short term there will be a big increase in business, longer term I think they will come out of it better than they went in but yes turnover will not be what it is now in 12 months time, but it will probably be more than it was 12 months ago.

Most people will go back to their old ways, and I will be one of them but I used to go there maybe once a month.

- I dont know about the other butchers, I have never been.

Time will tell I suppose.