Spa Poised To Sell Franchises: Five-Year-Old Facelift Creates New Business Model

Dunphy, Janet. "Spa Poised To Sell Franchises: Five-Year Old Facelift Creates New Business Model." Inside Business. 11 Apr. 2005: 14.

The owners of Spa Phoenix in Virginia Beach have created a niche in the marketplace, one that they claim is unique. The five-year-old spa houses a plastic surgery practice, day spa and salon services under one roof.

The concept is so successful that doctor-owners Matthew and Cynthia Galumbeck are now offering franchises for $25,000. He’s a plastic surgeon and she’s a psychiatrist who no longer practices. Instead, she’s the CEO.

“We’ve done so well and this business has grown,” said Matthew Galumbeck. “Spas in general have become more popular. Since 9/11 people are into caring for themselves and destressing.”

Spa Phoenix, the bird represents renewal, was hatched in 2000. The staff has grown from four to 24. The couple said expansion was brought on by demand.

Michael Lahm is a private consultant the Galumbecks used to expand the spa facility. He said businesses like Spa Phoenix gain an audience by offering a little bit of everything. These days, clients are looking for “a more genuine and simpler experience,” said Lahm, including ongoing skin care regimens. Spa Phoenix visitors are greeted by a skin care testing bar. There’s even a help-yourself hot towel caddy to clean off the samples.

The bar and adjacent lobby-reception area bridges the gap between the hair and nail salon and the facial-massage-surgery wing. The Galumbecks have two rooms with SkinMaster machines for what the industry calls facial rejuvenation.
The SkinMaster is an ultrasound machine with a soft blade that emits 26,000 pulses per second to the face to exfoliate and provide deeper penetration of skin products. Galumbeck said the SkinMaster is a good example of the new technology that he can offer.

Moving down the hall, there are three massage rooms and a door that leads to the plastic surgery area.

The Galumbecks are generous with their employees. Besides an annual educational allowance, they earn “spa bucks” for sales and service. In return, the Galumbecks expect the staff to be trained and licensed where applicable.