CNBC Interviews CEO Edward Logan on Reopening & Outlook for 2021

During the last two weeks of March, salons and many other service-industry businesses were forced to close in an effort to slow the spread of COVID-19; Sport Clips Haircuts has weathered the storm quite well. Now, with salons and barbershops reopened across the country, Sport Clips president and CEO Edward Logan was invited to speak with Brian Sullivan of CNBC’s Worldwide Exchange about our brand’s experience during state and local government-mandated temporary shutdowns, as well as the future of the industry.

After mandates led to shutting down the nearly 1,900 Sport Clips locations across the country, Logan reports that more than 97 percent have reopened and have even seen a surge in business. “All those clients who really desperately needed a haircut—and we fixed a lot of those at-home haircuts, as well,” Logan shares.

Enhanced Cleaning Protocols for a Safer Reopening

The salon and barbering industry is already highly regulated when it comes to cleanliness and disinfection. However, Sport Clips has gone above and beyond to ensure the safety and comfort of both stylists and clients, and with all locations shut down for 2-4 months, the team immediately went to work on a plan.

“We created a Sport Clips Clean certification program in order to make sure our stylists and our clients would be protected in this environment,” explains Logan, “so we have taken a lot of extra precautions on top of the sanitation practices we already had in place.”

Precautions include wearing masks and washing hands regularly, as well as frequent cleaning of all common areas, sanitizing every station for every single client, and opening a fresh equipment pack for each client that includes fresh tools and a fresh cape.

Contingency Plans for Potential Second-Wave Shutdowns

Some analysts predict a second wave of shutdowns, and Logan acknowledges that California locations opened, then closed, and have reopened second time. “We have contingency plans for all situations, in all areas,” he says, though he remains optimistic contingencies will not be necessary.

Whatever comes next, Logan points out, our brand is a franchise concept, so we will be ready to provide support and guidance to our franchise owners. “As a franchisor, it’s our responsibility to understand the right course of action and help franchisees take that action locally,” he explains.

Outlook for Sport Clips & the Salon Industry

Sport Clips prides itself on a great culture, which Logan largely credits for nearly all the system's stylists coming back to work as soon as their locations reopened. A small number of stylists either could not return to work for health or childcare reasons or chose not to because of the aggressive unemployment benefits. Logan agrees those things may continue to be a challenge, especially as the school year ramps up, but he believes strong brands like Sport Clips will overcome the challenge better than others.

Industry-wide, many smaller salons may not be able to recover from the lengthy shutdown and could close permanently. If that happens, Logan predicts there will be some industry consolidation, with stylists seeking established salons for stable employment and former salon owners looking to invest in a haircare franchise opportunity with a stronger support system. For that reason, he expects to see a record number of new franchisees in 2021.

Watch the Full Interview Here

If you would like to learn more about our haircutting franchise opportunity and our championship support, call (800) 655-9679 or reach out online today.