Hand & Stone Featured in New Jersey Business Journal

Hand & Stone was recently featured in the New Jersey Business Journal in an article titled "NJ-based franchise finds downturn a soothing time to grow" in which Bob McQuillan, VP of Franchise Development, discusses opening 4 Hand & Stone locations in two weeks. He also talks about why holiday season is optimal for growth (great opportunity for gift card sales), and Hand & Stone’s business model of massage – a service that was once considered a luxury, is now affordable and accessible to everyone. A portion of the article is included below and it can be read in its entirety by clicking here.

N.J.-based spa franchise finds downturn a soothing time to grow
By Beth Fitzgerald

Hand & Stone, a New Jersey-based spa franchise targeting customers seeking affordable treatments, is adding four new locations in the next two weeks, bringing the number to 11 in New Jersey and 36 nationwide.

Bob McQuillan, vice president of franchise development, said the pre-holiday season is a key time for new spas to open, with gift cards making up about one-third of the revenue. A new franchise that opens up just before the holidays will get an immediate infusion of cash from the sale of gift cards, he said. Cash flow from gift cards provides working capital “until the business ramps up and revenues increase,” he said. Valentine’s Day, along with Mother’s Day and Father’s Day, also are big holidays for spas selling gift cards, he said.

Hand & Stone was founded in Toms River in 2005, and is now based in Hamilton.

McQuillan said Hand & Stone is aimed at customers who want to be pampered with a massage or a facial, but can’t afford the $150 to $200 per session prices at upscale spas; Hand & Stone offers its services at around $50 to $60 — “a beautiful atmosphere, minus the champagne and the robe,” he said.

The four new locations will be in Cherry Hill, Princeton, Voorhees and Delran.

(Read More)

Hand & Stone Founder John Marco interviewed by Advcance for Physical Therapy and Rehab Medicine

Hand & Stone was recently featured in Advance for Physical Therapy & Rehab Medicine in an article called “Five Questions with John Marco.” The article discusses how Founder of Hand & Stone, John Marco utilized his background as a physical therapist to create and grow Hand & Stone Massage and Facial Spa. John speaks about massage therapy being extremely beneficial for health reasons but lacking in accessibility and affordability, which ultimately gave him the idea to create the concept, Hand & Stone. Read a portion of the story below or check out the full article here:

5 Questions With: John Marco
by Jonathan Bassett

As awareness of the health benefits of massage continues to rise, massage therapy is no longer considered a luxury item. It's become a lifestyle choice for those seeking longevity and wellness.

With corporate offices in Hamilton, NJ, Hand & Stone Massage and Facial Spa has grown to incorporate 35 franchise locations across 11 states and in Canada. In 2005, company founder and COO John Marco leveraged a 25-year career in physical therapy to establish a unique business model that allows clients to schedule an appointment on the day of service, rather than tracking down a freelance massage therapist and waiting days or weeks for an appointment. Membership rates mean clients pay far less than traditional hourly rates.

In this interview with ADVANCE, Marco discusses his 25-year physical therapy career, how the idea of his business came about, and what's next for Hand & Stone.

ADVANCE: How did you get your start in physical therapy?

Marco: In 1977 I volunteered as a physical therapy aide in a rehabilitation hospital in Toms River, NJ. Within a few weeks a job opening became available for a PT aide position, and I took it. It didn't take long for me to see that some very special things were being done right before my eyes. I was hooked on a healing profession. I was hooked on physical therapy. (Read More)

Local Mom and Career Woman Wins Hand & Stone’s Hardest Working Person in America Contest

Chosen by Fan Votes on Facebook, Joanne Vadas Wins Free Massages for a Year from Hand & Stone

In a nationwide contest hosted by the 30-plus unit massage and facial spa Hand & Stone, Howell, New Jersey mom, caregiver and nurse, Joanne Vadas, was named “Hardest Working Person in America.” Nominated by her daughter Natalie, Joanne’s story captured the hearts of Hand & Stone fans nationwide, who voted her story the most compelling in the nationwide Facebook contest. As winner, Joanne Vadas will receive free massages for an entire year at Hand & Stone’s Spring Lake location for her selfless giving and hardworking character.

Natalie’s nomination stated, “My mom, Joanne, is the hardest working person I know. My father passed away last year from malignant melanoma so for the past two years my mother has been consumed with not only taking care of him for his last few months, but now she is working so very hard to keep this household afloat. She is a nurse in a dermatologist office, and she is on her feet all day-- with one knee replaced and the other needing to be replaced any day now (which she would, except she cannot afford to take the time off of work). She does everything for everyone, but never anything for herself.”

Natalie Vadas’ nomination was one of seven heart-felt nominations selected to move to the final round, where Hand & Stone’s Facebook fans voted on the nominations to determine the winner. Joanne Vadas was announced the winner on Monday, Sept. 20, 2010. The 2nd place winner is Jean Sable of Phoenix, AZ.

“I am amazed, awe struck. I was completely unaware about Natalie (Joanne’s daughter) signing me up for the contest,” said Joanne Vadas. “It came as quite a surprise just how many people had nice things to say and showed their support for me.”

Hand & Stone’s “Hardest Working Person in America” contest was designed to build individualized and personalized connections with would be and established members alike.

“Especially in trying economic times, Americans are forced to work harder and longer hours,” said Todd Leff, CEO of Hand & Stone. “We wanted to hear our member’s stories, as well as the stories of their friends and families, and then reward them with a little relaxation.”

The contest launched Hand & Stone’s social presence and built individualized and personalized connections with their Facebook fans and educated fans about Hand & Stone’s services.

“While the typical massage client used to have to track down a freelance masseuse, schedule an appointment days in advance, and pay over $100 for a one-hour treatment, most Hand & Stone clients book their appointments on the same day as service and pay 30 percent less than the traditional hourly rate,” said Leff, noting that when they sign up for a one-session-per-month plan, they end up paying just $49 per visit.

As massage spas become more mainstream in the health care industry, Hand & Stone stays at the top of the game by adding locations and services to keep the brand fresh. That strategy has proven to be successful, as the addition of facials and waxing to the services roster has boosted the average store sales by over 20 percent during this past year, in a very tough economic environment. Hand and Stone expects to open 15 new locations currently under construction by the year end.

"Most of our franchisees have no massage experience, they are just business people who understand that this industry is ripe for growth and love the fact that we are providing a positive health related service," Leff said. "Twenty-two percent of Americans got a massage last year, and that figure is growing. As massage becomes a more integrated part of health care, we see this business achieving even wider-spread growth and longevity."

Alternative Medicine Becomes Mainstream: Benefits Provided to the Masses

What was previously thought of as just a luxury and pampering experience is now being called a way of life for millions of Americans, even to the point of a necessity. Massage clearly delivers the physical and mental benefits that are very easy to understand and appreciate.

“After being in physical therapy for 25 years, I recognized that many patients’ injuries were improved better and more quickly through massage therapy,” said John Marco, Founder and COO of Hand & Stone. “No longer is massage considered a luxury item, it’s now driven by those who are seeking longevity and wellness, making it a lifestyle choice above all else.”

The industry alone had over 130 million visits annually and boasted sales of $12.8 billion in 2009 and there’s not one finite person who typically gets massages; they are from every walk of life, male or female, young to old. According to the 2010 AMTA Industry Report, massage use among 18-24 year olds has risen to 48%; massage use among older Baby Boomers (ages 55-64) has doubled in the past ten years and use among those older than 65 has tripled during the same time.

These staggering statistics indicate that consumers are “getting it” and they now understand that massage has positive medical implications. According to John Marco, massage does much more than just relax you. It:

• Relives Tension and Stress
• Decreases Pain
• Lowers Blood Pressure
• Increases Circulation
• Strengthens the Immune System
• Improves Recovery Time from Injuries
• Reduces Fatigue
• And a lot more…

Marco said that stress is the number one reason why consumers continually receive massages. Massage therapy relaxes the muscles which aids the body in generating more blood flow, and therefore helps to repair and regenerate muscles faster.

“What fuels the rapid growth of the industry is the direct ‘feel-good’ results that occur due to instant relaxation that each client experiences during and after a massage,” said Marco, “The treatment is so desirable for consumers because it has identifiable and measureable results, where they feel rejuvenated after an hour session.”

While the typical massage client used to have to track down a freelance Massage Therapist, schedule an appointment days in advance, and pay as much as $90 or more for a one-hour treatment, most Hand & Stone clients book their appointments on the same day as service and pay 30 percent less than the traditional hourly rate. Better yet, when they sign up for a one-session-per-month plan, they end up paying even less per visit.

As massage becomes more and more mainstream in the health care industry, Hand & Stone Massage and Facial Spa stays at the top of the game by adding locations and services to keep the brand fresh. That strategy has proven to be successful, as the addition of facials and waxing to the services roster has boosted the average store sales by over 14 percent during this past year, in a very tough economic environment. Marco expects to sign another 25 new franchisees to the Hand & Stone system this year, each one investing a total of around $325,000.

“Massage and facials are a great way to maintain a healthy body and healthy skin,” Marco said. “It provides an escape for many individuals, where you can take an hour or two to focus on pampering yourself while receiving long-term health benefits too.”

Hand and Stone franchisees Fred and Steve Vicario featured in the Courier Post

A great article called “No-frills approach to spa pampering,” published Sunday, Sept. 15 in the Courier Post in which Fred and Steve Vicario, franchisees and regional developers of Hand & Stone, were interviewed. It discusses multiple facets of Hand & Stone including Hand & Stone’s model, the customer benefits of getting a monthly massage service, the breadth of services like waxing and facials, the growth of Hand & Stone in South Jersey, and the franchise opportunity. Check out a portion of the article below or read the full story here.

No-frills approach to spa pampering
By EILEEN SMITH • Courier-Post Staff • September 5, 2010

EVESHAM — At Hand & Stone, the spa concept has been massaged to make the price of pampering more accessible.

There are no fluffy white robes, no showers, no lounge with cucumber water and fashion magazines.

"Our clients want to come in, get a service and get on with their busy lives," says Steve Vicario, who owns the spa at Green Tree Plaza with his brother, Fred.

One in four American adults -- 24 percent -- got a massage last year, according to "American Spa Industry Insider," a trade publication.

Hand & Stone franchises grew 30 percent in 2009, capitalizing on cheap rents and other incentives offered by landlords amid a glut of vacant commercial space.

"We have been able to reduce start-up costs by as much as $100,000," says Vicario, 37. "That's part of the reason we are growing so quickly." (Read More)

How Hand & Stone Adjusted to the New Economy

Bob McQuillan, Vice President of Franchise Development for Hand & Stone

Over the past two years, the state of franchising has changed quite a bit. Positively, a new report just released by the U.S. Census says that 10.5% of U.S. businesses are franchises, which indicates a large percentage of people are still continuing to turn to franchising. However, the tightened credit crisis has been the main contributor to the change in the franchising industry, but Hand & Stone is doing some innovative things to keep growing amidst a tough economy.

From the franchise level, we’ve gone back to basics. We are developing and leveraging strategic relationships in the franchise industry to help foster the growth of our business. We are turning to business coaches (franchise brokers) to help bridge the relationship with prospective franchisees, and we work very closely with them to get their clients into our system.

One of the negative effects of the economy has been the ability for a franchisee to get financed in a new business. We (the franchisor) are pulling out all the stops for franchisees – leasing arrangements, home equity loans, and 401k rollover programs are some of the ways that we are helping aid first-time business owners in the process, and thus, we’ve been fortunate to recruit a very sophisticated group of franchisees.

Additionally, Hand & Stone is experiencing a very positive effect from corporate America down-sizing, as we are seeing more qualified prospective franchisees with a very sophisticated set of skills that enables them to be a perfect fit for our type of business. As companies continue to offer early retirement packages or downsize their current workforce, companies like Hand & Stone will be a good place for them to turn to and utilize those skill sets.

Hand and Stone Featured in Philadelphia Business Journal

Hand & Stone was just featured in the Philadelphia Business Journal because of its success helping franchisees save money! With the economy in a rough patch, Hand & Stone is pitching in where it can to support their franchisees. Check a portion of the story below or read the entire article here:

In a slow year, franchisors cut deals to keep growing
Philadelphia Business Journal - by Sonja Sherwood Staff Writer

With business loans still hard to come by, franchisors unwilling to sacrifice growth are making their systems more affordable to new owners by reducing franchise fees, offering incentives, providing in-house financing or scrutinizing their business model for savings that can be shared throughout the system.

Hand & Stone, a Hamilton, N.J.-based spa concept with eight locations in the Philadelphia area, saves each franchisee tens of thousands of dollars on average by negotiating favorable rent and cashback from the landlord for tenant improvements.

“A lot of landlords have got a lot more vacancy than they used to,” said Bob McQuillan, vice president for franchise development. “There’s not a lease that we’ve done that we haven’t received money back from the landlord.” (Read More)

Hand & Stone featured in The Trentoninan

Hand & Stone was recently featured in The Trentoninan in Trenton, NJ about its new Hamilton location as well as CEO Todd Leff’s decision to move the franchise’s headquarters to the Hamilton area. The new spa location has been receiving tremendous traffic since its opening in early June. Leff hopes to capitalize on the demand in the area by drawing on Philadelphia’s “wealth of talent in franchising” to bolster his management team.


“It was awesome. I really enjoyed it. I’m really relaxed now,” said 25-year-old Lindsay Linderman of Bordentown after she received a 15-minute rubdown at the new Hand & Stone Massage and Facial Spa at the Hamilton Marketplace.

“He did exactly what I needed him to do: He relieved the tension in my back,” Linderman said of the Hand & Stone employee who gave her the soothing massage.

That man was Anton Yankelevich, 26, who became a certified massage therapist about two years ago after giving up on his unrewarding stints as a car salesman and construction worker.

“I’m doing something I enjoy,” Yankelevich, a Philadelphia resident originally from Ewing, said of his prowess as a massage therapist. “It’s kind of an art. I like muscles.”

When Yankelevich found out how pleased Linderman was with his massage, his face widened with a big grin and he said, “That feels good. Just making the world a better place.”

Yankelevich’s co-workers share the view that they make people’s lives better through the therapy they provide as massage therapists.

(Read More)

Fred and Steve Vicario, Regional Developers of Hand and Stone, New Jersey

Franchisees Since: February 2008

Franchise Locations: Owners of Marlton and Vorhees locations; Regional Developers of Central and South Jersey


How Fred and Steve Vicario Got Started With Hand and Stone…
Between Fred and Steve, the two brothers have extensive business experience in franchise development and small business ownership. Fred comes with a long list of experience in the franchising industry, which spans over 20 years. He got his start with Maaco, an auto body and collision center franchise, on the franchise development team, where he was responsible for helping entrepreneurs become franchisees with Maaco. While there, Fred and his wife, decided to become franchisees themselves. They bought The Goddard School, which they have been running for the past nine years in Laurel Springs, NJ. Steve owns a hardscaping business, which he has been doing for about five years.


Ready for their next adventure, Fred and Steve had discovered that the massage industry was booming and looked into their options in franchising within the industry. At first, Fred and Steve researched a competitor of Hand and Stone, but determined that the support would be better with Hand and Stone since the corporate office was virtually in their backyard. It also seemed to Fred and Steve that Hand and Stone was vested in supporting its franchisees more so than the competition.


Fred and Steve became Regional Developers for Hand and Stone…
In February 2008, Fred and Steve opened their first Hand and Stone location in Marlton, NJ. With previous experience in franchise development, they felt that they had the opportunity to build something for their futures with Hand and Stone. Only four months after opening their first location, Fred and Steve became regional developers for Hand and Stone in Central and South Jersey.


In the regional developer role, they work with potential Hand and Stone franchisees in Central and South Jersey including Monmouth, Ocean, Middlesex, Somerset, Hunterton and Mercer to educate them on the Hand and Stone concept and walk them through the franchise process. Currently, Fred and Steve have three locations within their territory and are in the process of opening seven more this year. Despite the economy, 2010 has been the fastest-growing year in terms of sales and number of locations for Fred and Steve, and within their territory, there is potential for 20-30 more Hand and Stone locations.


This September, Fred and Steve are opening their second location as franchisees in Vorhees.