NOW IS THE TIME TO
REVAMP YOUR
BY
JAMISON
STOIKE
Pulse spoke with two spa industry veterans and
menu gurus—Jill Carlen, global director spa concepts for
Hilton Worldwide, and Kate Mearns, principal of 5 Spa
Consulting LLC—for their insights into what you should keep
in mind while revamping your menu in the time of coronavirus.
1. TIMES CHANGE. MATH DOESN’T.
It’s tempting to view the COVID-19 pandemic as a time to
throw out the rulebook and go with your gut. Mearns cau-
tions against this, though: “Even during uncertain times, the
process of evaluating your menu for updates and changes is
the same as any other time.” For Mearns, that means a sim-
ple and math-based approach that involves calculating how
many services have been performed during a time interval
and the financial contribution per service (found by sub-
tracting product and soft goods costs from the total price) of
each menu item. Then, rate each menu item’s popularity
and profitability as either low or high.
Services that are high-demand and highly profitable
are “STAR” services and should be kept, while those with
low demand and less profitably are “DOG” services that
should be jettisoned, says Mearns. Treatments with low
popularity but a high margin should be more heavily pro-
moted, and evaluate ways to increase the profitability of
those services with high popularity but a low margin.
If you plan to initially reopen your spa with a limited
menu, Carlen recommends focusing on services with a low
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cost of goods and which provide immediate, noticeable
benefits to guests. “Cut those services that require a high
cost per treatment (as in a lot of products) and are provider-
heavy, such as four-handed massage, perhaps,” comments
Carlen. It may also make sense to delay the return of serv-
ices that require extra equipment or tools, which require
more time, effort and cost to sanitize thoroughly.
2. ANTICIPATE CHANGING CONSUMER
DEMAND.
There are a number of factors which will likely lead to de-
mand changes when spas reopen. First and foremost,
while the high economic toll of the COVID-19 pandemic
will affect consumers’ pocketbooks, it is less clear how re-
duced financial security will affect consumer demand for
spa services. “The ‘lipstick’ effect will certainly play a big
role,” Carlen says, referring to the phenomenon of in-
creased spending on small indulgences when large indul-
gences are unaffordable. “Consumers may not be able to
afford a fancy new car or a vacation, but they may be able
to afford a manicure or service that helps them feel good