Hair Salons
Hair salon chains and independent studios providing cutting, coloring, styling, and related services to consumers.
- 4
- Verticals
Overview
Hair Salons provide cutting, coloring, and styling through chains, franchises (Great Clips, Sport Clips), and a vast base of independent studios. It is the largest personal-care service category by establishment count, and the suite-rental model (Sola Salons, Phenix) has reshaped the industry by leasing space to independent stylists.
Demand is recurring and recession-resilient, but the business is intensely fragmented and labor-driven. Consolidation runs through value-haircut franchises and the booming salon-suite real-estate model rather than traditional salon roll-ups.
Market snapshot
- Market size
- ~$26B
- Growth
- ~2.5%CAGR (2017–22, nominal)
- Companies
- ~72,778 firms
95.4% of firms have fewer than 20 employees: 69,424 micro-businesses, below most mandates.
- 20–99
- 3,13093%
- 100–499
- 2036%
- 500+
- 211%
The largest personal-care category by firm count and the template for the sector's economics — recession-resilient, recurring, and intensely fragmented across ~73,000 firms. The structural shift is the salon-suite model (Sola, Phenix), which leases chairs to independent stylists and turns the operator into a landlord; that, plus value-haircut franchises (Great Clips, Sport Clips), is where consolidation actually runs, because traditional salon roll-ups struggle against booth-rent economics.
NAICS 812112. U.S. Census Bureau — 2022 Statistics of U.S. Businesses; U.S. Census Bureau — 2022 Economic Census.
Business model & economics
Revenue model
Service fees and product sales; franchise/suite-rental income
Key economics
- Revenue per firm
- $352,634
- Revenue per employee
- $65,941
- Employees per firm
- 5.3
- Recurring revenue
- Moderate
- EBITDA margin
- 10–20%
- Capex intensity
- Low
recurring repeat visits
Characteristics
- Balanced cost base — payroll is 44% of revenue, leaving room to scale margin without cutting staff
- Owner-operator dominated — 92% of businesses have no employees and take 49% of revenue
- Thin strategic-buyer pool — only 21 firms exceed 500 employees; exits skew sponsor-to-sponsor
- Largest personal-care category by establishment count.
- Salon-suite rental model reshaped the industry.
- Recession-resilient but intensely fragmented and labor-driven.
NAICS 812112. U.S. Census Bureau — 2022 Statistics of U.S. Businesses; U.S. Census Bureau — 2022 Economic Census; U.S. Census Bureau — 2022 Nonemployer Statistics.
M&A deal context
Who’s acquiring
- Value-haircut franchise networks
- Salon-suite real-estate platforms
- PE-backed beauty consolidators
What’s driving deals
- Franchise consolidation in value haircuts.
- Salon-suite rental model expansion.
- Fragmentation limiting traditional roll-ups.
Verticals in this segment
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