Greener Shades for Nail Salons

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Spa Treatments

The problem? The fashion for all things "natural" means fewer and fewer customers are requesting acrylic nails. Artificial-nail services typically cost more than twice as much as a regular manicure, and make up the bulk of a salon's profits—about 41%, on average. At Regal Nails, Ton estimates the figure is closer to 70%. And Ton says the shift he's seeing looks like more than just a short-term fad.

"Right now, acrylic nails are most of our profits, but I think that will fade away in the next five or 10 years," Ton says. "The younger generation only wants real nails."

Case in point: Colleen McCormick, 24, wore acrylic nails off and on throughout her college years, but since moving to New York City she has gone strictly au naturel. "Natural nails are a little more classy these days," she says. Acrylics, "especially the really long ones, with the bright colors or the designs, just look a little tacky."

McCormick is certainly not the only woman her age to feel that way. In response, the last few years have seen the rise of a new breed of "nail spa" that doesn't offer artificial-nail services at all. Instead, natural nail salons cater to customers interested in overall wellness by offering treatments that incorporate spa-like add-ons such as salt scrubs and use natural ingredients such as aloe, fruit extracts, or essential oils. Descriptions often emphasize the health benefits of these services. A classic manicure at Le Crème Spa in San Francisco, for example, includes a hot cream massage "to encourage circulation and nourishment for your skin."

New Services

Now Ton wants to take the nail-spa concept mainstream, banking on the idea that the same Wal-Mart customers willing to spend a few more cents to buy organic produce will be willing to pay a premium for higher-quality natural nail services, too (see BusinessWeek.com, 3/29/06, "Wal-Mart's Organic Offensive"). According to the Natural Marketing Institute, the natural/organic personal-care market is projected to grow even faster than the market for organic food, reaching nearly $6 billion in sales for 2007.

Ton calls the new concept "Regal Nail Select." His plan includes expanding offerings to include "deluxe" versions of existing nail services, as well as new services like eyelash extensions and hair removal. To improve the ambience, he has designed a new Asian-chic store prototype with soothing earth-tone colors, as well as more space for pedicure thrones.

He's also working on formulating better "healthy-nail" products that don't carry harsh chemical odors, and he expects technicians to increase upsells of products like vitamin-fortified cuticle cream and nail strengthener that customers can use to maintain their "nail health" between appointments.

Though he's still waiting on Wal-Mart approval for some changes, Ton hopes to open 20 Regal Nail Select franchises in affluent areas such as Las Vegas and Orlando by the end of 2007. Existing franchisees will be allowed to upgrade if they wish, but they have to cover all the expenses themselves. While he admits the upgrade is a costly one—especially for stores that will have to build out additional plumbing—he's betting it will be successful.

Click here for a slide show of how nail salons are adapting to the "natural" lifestyle.

Miller is a New York-based staff writer covering startups and small business. Miller is a graduate of Brown University.