Planet Beach Maintains a Sustainable Brand Despite Economic Downturn, Natural Disaster

Automated Spa Franchise Survives Hurricane, Recession and Tanning Tax and Continues to Thrive

NEW ORLEANS, LA - (Marketwire - Oct 24, 2012) - Hurricane Katrina, the most destructive natural disaster in U.S. history, crippled the Gulf Coast's business environment, forcing thousands of enterprises large and small to close, some for good. The recession a few years later delivered a second blow to the region's economy.

Planet Beach contempo spa triumphed through the hard times and kept its doors open -- and continues its presence as a leading spa and wellness facility in more than 250 locations worldwide.

"We recognized long before the economy crashed that the spa industry was changing and that we'd have to adapt to succeed," said Stephen Smith, Planet Beach's founder and CEO. "In 2005, our conversion to the contempo spa model -- where we offer spa services in addition to tanning options -- put us in a great position to grow worldwide."

This change is what kept the franchise system afloat as their small business peers went under. Katrina tore New Orleans apart that year, and even though Planet Beach had to evacuate its corporate headquarters in Marrero -- just on the other side of the Mississippi River from inundated New Orleans -- it continued operating.

In 2010, the federal government delivered another piece of bad news for the company: a 10 percent federal excise tax on indoor tanning salons as part of the Affordable Care Act. Tanning salons were forced to raise their fees and rates, which led to a nationwide drop in customers and the closing of thousands of tanning businesses.

Planet Beach's solid foundation and shift to the automated spa model allowed it to weather the figurative and literal storms. Rising health care costs and the desire to live a healthier lifestyle have increased significantly the importance of the spa and wellness industry, creating a great opportunity for Planet Beach. No longer are massages and other spa services luxuries; they're necessities to reduce stress and help people live healthier, happier lives.

The automated spa franchise is a membership-based system, giving customers access to automated massages, facials, hydration treatments and more for a low, monthly payment. This system also benefits franchise owners, providing consistent revenue each month.

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Media Contact:

Troy Wise
Executive Director of Franchise Marketing & Social Media



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