In a strategic pivot from its recent focus on selling company-owned salons to franchisees, Regis Corp. has bought 314 high-performing SuperCuts, Cost Cutters and Holiday Hair salons from its largest franchisee, Alline Salon Group, for $22 million.
The world’s largest salon chain operator, Regis owns those three franchise brands plus 16 others including Roosters Men’s Grooming Center, First Choice Hair, Regis Salons, MasterCuts, Pro-Cuts, Famous Hair, and SmartStyle Hair Salons (located inside Walmart Supercenters).
The move is a departure from the asset-light business model Regis has leaned on heavily since the pandemic. After its first fiscal quarter that ended Sept. 30, 2024, Regis had nine company-owned and 4,350 franchise-owned salons, and had sold 137 salons in that period.
That quarter saw Regis’ revenue at $111.4 million, down 55 percent from $247 million the year before, when it had 1,056 company-owned salons adding to its top line.
With the turnkey acquisition, Regis adds the 314 salons’ $83 million in annual revenue and $5.8 million in profits to its balance sheet. The salons are located in five states, primarily Michigan, Ohio, and Pennsylvania.
“Beyond the financial aspects, this transaction has significant strategic benefits that we view equally as important,” says Regis’ President and CEO, Matthew Doctor.
“As we have entered a new chapter at Regis, we felt being closer to salon operations was important as we look to drive sales and profitability for our franchisees," he says. "We now have an additional proving ground to test and learn business-driving initiatives in a controlled environment before broader franchisee operation.”
Alline will work in partnership with Regis, according to its CEO, Mike Sarafa. "We believe our team members will have further opportunity to grow and drive results as part of the broader Regis organization," he says, "and we look forward to working with Matt and the rest of the Regis team for the years ahead.”