No haircuts or color: blowdry bars are a booming business

NEW YORK -- At first glance, the chic Drybar hair salon in Midtown Manhattan seems to have everything a luxury-loving customer could crave

Champagne — check. A selection of cookies — check. Chilled water infused with pineapples and strawberries — check.

But if clients ask for a haircut, highlights, manicure or pedicure, they're out of luck.

Drybar's 16 U.S. salons offer one primary service: washing and blow-drying hair into straight, wavy, "beachy" or other stylish hairdos.

Its motto: "No cuts. No color. Just blowouts."

The beautification options are limited, yet Drybar's customer base is swelling. The company, which started in February 2010, is on track to have 25 salons by the end of 2012, and 44 by the end of next year.

Drybar has about 800 stylists who collectively cater to thousands of clients daily. Celebrities such as Maria Shriver, Jennifer Love Hewitt and Cindy Crawford have had their hair done. Actress Rose McGowan — who first discovered Drybar as a customer — is an investor.

Patrons such as Manhattan resident Bess Freedman appreciate that the salon focuses on one specific service — so-called "blowouts" — and trains stylists to do that task quickly and skillfully.

"Every person is good," says Freedman, an executive at real estate firm Corcoran, who comes twice a week to have her curly tresses blown smooth. "They do a great job."

Starting at home

The Drybar concept is the brainchild of hair stylist and former public relations practitioner Alli Webb, 37.

In 2008, Webb launched a small business named Straight-at-Home, in which she did blowouts at client homes in the Los Angeles area. As demand increased, she approached her brother about teaming up to open a bigger business.

"When she came to me with this idea, I thought she was crazy," says her brother, Michael Landau, who was previously a marketing executive for Yahoo and other firms. "I didn't understand why a woman would need a blowout and why she just couldn't do her hair herself."

Webb convinced him of the potential, and they opened a shop in the Brentwood area of Los Angeles.

The first salon was funded by Webb, Landau and architect Josh Heitler, who was given a small stake in exchange for his investment and his design help.

"We were hoping to do 20 to 30 blowouts a day," says Landau, 40, now Drybar CEO. "And the thing took off beyond our imaginations."

Landau and Webb rapidly capitalized on the potential, opening four more stores, then raising $2.5 million from early investors in November 2010 to keep the growth going.

"For us, it's been about mobilizing quickly when you realize you have lightning in a bottle," Landau says.

Drybar took advantage of two trends: the popularity of smooth-looking hair, rather than curly or frizzy locks, and the rising number of women who want a quick salon service rather than an extended beauty parlor visit.

Express salons such as "blowout bars" are "poised to be a trend with ample opportunity for growth, post-recession," research group Mintel said in a June report on the salon industry.

During the downturn, consumers were likely to cut back on salon services, says Mintel, but with the economy improving, "the salon industry seems to have a promising future."

As blowout demand increases, competition has heated up.

Rivals such as Blo Blow Dry Bar are expanding, while established full-service salons now aggressively promote their own blowout services.

Other entrepreneurs have capitalized on the trend.

In October 2010, Rosemary Camposano opened the first of her three Halo Blow Dry Bars in California. She says she'll have two more locations by the end of 2012 and hopes to have as many as 13 by the end of 2013.

"We'll be competing with (Drybar) neck and neck before you know it," Camposano says.

For its part, the Drybar management team has been quick to build and promote its brand.

"We realized that we needed to move fast, because there are low barriers to entry," Landau says.

To get the capital for expansion, he and Webb sold equity in the company and offered franchise rights. They now own just under 50% of the company, but are still the largest shareholders. They continue to actively manage the business and hold two of the five board seats.

They also brought on others to help with management and expansion. Last year, they hired operations executive Karen Kelley as president and chief operating officer. Kelley was a senior vice president of operations and people at frozen yogurt chain Pinkberry.

"Karen has spent the last 20 years helping companies like Boston Market, Jamba Juice, and most recently, Pinkberry, with major national roll-outs," it says under her bio on TheDrybar.com. "We could not be more excited (and relieved) to have Karen on the team."

Goal: A place to have fun

Even before they had the help of high-level executives and millions in private-equity money, Webb and Landau had figured out a successful salon formula. They not only offered quick, affordable blowouts, but did so in a hip, female-friendly setting that's replicated at each of its locations.

Chick flicks such as Bridesmaids play on closed-captioned flat-screen TVs. Glasses of Champagne and light snacks are complimentary. Clients pick their preferred hair styles from a menu that features photos of fun, drink-themed looks. The Mai Tai, for instance, is "messy and beachy," while Southern Comfort is "big hair with volume."

Patrons sit next to each other at a long bar, similar to a saloon setting.

"We want women to come in and have fun," Webb says. "What's more fun than going to your local bar?"

Drybar also offers consistency on pricing. While many salons base a blowout fee on a client's hair length, texture or thickness, Drybar charges a flat price at each salon. All current locations charge $35 except in Manhattan, where rent is higher. There, the price is $40.

The skills of the Drybar stylists, as well as the company's focus on customer service, keep patrons coming back, Landau says.

After two-and-a-half years in business, he says he's also now enlightened on another reason that clients return: They not only receive freshly coiffed locks, they also get a boost of self-assurance.

"A blowout is much more than just the hair," he says. "It changes their attitude and confidence, and I see that time and time again."