Nail Salon Business Overview

Nail salons provide specialized beauty and grooming services focused on nail care. While manicures and pedicures make up 85% of their business, many salons have expanded their offerings to include additional services. These supplementary services often include skin care treatments, hair removal services, massages, body wraps, reflexology treatments, and eyelash enhancement. Each nail technician must complete state-required training and obtain proper licensing before working in a salon.

The ways to own and operate a nail salon vary based on the business structure:

• Independent Ownership: The most common model where an individual owns and manages a single location. The owner handles all business operations, from scheduling to supply management.
• Booth Rental Model: The salon owner provides space and basic equipment to independent nail technicians who pay monthly rent. These technicians operate as separate businesses, managing their own clients and supplies.
• Franchise Operation: Business owners purchase rights to operate under established brand names like Regal Nails. Franchises often come with built-in procedures, marketing support, and brand recognition.
• Chair Leasing: Similar to booth rental, but technicians pay per day or week rather than monthly. This model offers more flexibility for part-time professionals.
• Retail-Based Location: Salons operate within larger retail stores, like Walmart, providing convenient access to shoppers. Due to their placement, these locations often see steady customer traffic.

Industry Statistics

The nail salon industry falls under NAICS code 812113, which classifies businesses providing personal care services focused on nail maintenance and enhancement. These establishments serve customers seeking both routine nail care and specialty services.

The following statistics provide a snapshot of the current state of the nail salon industry in the United States:

Nail Salon Industry Size & Growth: The nail salon industry generates $12.9 billion in annual revenue, of which $5.5 billion comes from independent operators and self-employed technicians. Spending in this sector increased by 2.6% as of June 2024 compared to the previous year (Vertical IQ).

Number of Nail Salons: There are approximately 32,000 employer-based nail salons in the United States, complemented by over 252,200 non-employer establishments. The industry remains highly decentralized – the top 50 companies control less than 3% of the market share. Regal Nails leads the franchise segment with 900 locations, primarily within Walmart stores (Vertical IQ).

Typical Nail Salon Revenues: Based on industry data, the average nail salon generates approximately $430,000 in annual revenue. Recent pricing trends show that the average nail service at spas increased from $48 in 2019 to $59 in 2023 (Vertical IQ).

Nail Salon Average Profit Margin: Nail salons typically see profit margins ranging from 15% to 20% of total revenue, with an average of 18%. These margins can vary based on factors such as location, service pricing, operational costs, and competition in the area.

Employment and Wages: The industry employs about 148,000 workers in employer establishments. Employment rose 3.4% in July 2024 compared to the previous year, with average wages for non-supervisory employees reaching $24.40 per hour (Vertical IQ).

Also See: Ideas for Naming a Nail Salon

How Much Does It Cost To Start a Nail Salon?

Starting a nail salon typically requires an initial investment between $40,000 and $250,000, depending on location, size, and level of amenities. This range varies significantly depending on whether you choose a basic setup or create a high-end spa environment.

The largest expenses when opening a nail salon include renovations and equipment. Remodeling costs range from $20,000 to $100,000 to meet health department requirements and create an appealing atmosphere. Nail stations, pedicure chairs, and basic equipment can cost $15,000 to $45,000 for a small salon with 4-5 service areas.

Business licenses and permits cost between $1,000 and $3,000. This includes health department certifications, business registration, and professional licensing fees. Basic liability and property insurance coverage typically run from $2,000 to $4,000 annually.

Initial inventory of polish, tools, cleaning supplies, and retail products requires $5,000 to $15,000. Marketing and signage costs range from $2,000 to $8,000 for basic promotional materials and storefront displays.

Depending on location and square footage, a security deposit and first few months’ rent can range from $5,000 to $25,000. Additional costs include point-of-sale systems, furniture for waiting areas, and working capital to cover the first few months of operation.

These figures represent general ranges for independent nail salons. Franchise options may require higher initial investments but often include equipment packages and startup support.

Resources:
Association of Cosmetology Salon Professionals
American Beauty Association
International Salon Spa Business Network
Professional Beauty Association
Salon Spa Professional Association