The expansion of fast facial bars isn’t expected to decelerate any time soon. 

Over the past 12 months, the fast facial market has gained traction with consumers and investors alike. In January, Glowbar, known for its 30-minute $65 facials, closed a $10 million series A round. Last December, Heyday received $12 million in series B extension following a $20 million investment two years before. And while Silver Mirror has been self-funded thus far, the model is expanding with plans to shut the 12 months with 10 total locations, doubling down on Latest York and Miami. 

The expansion of this market directly reflects consumer interest in wellness services — in line with a 2022 report from McKinsey, 45 percent of consumers intend to spend more on wellness services. Meanwhile, the Global Wellness Institute projects the worldwide spa market to be value $68 billion. With consumers trying to spend more and the solid business model these locations pose, investor interest has remained regular. 

“It’s an incredibly interesting space for investors because the basics are there for the market, meaning that the unit economics for the vast majority of these concepts are pretty compelling by way of volume and profitability, and the market dynamics are favorable,” said Marko Horvat, managing director, investment banking at Raymond James. 

Tara Hyland, a vp at private equity firm Essential Post Partners, seconded this.

“Fast facial bars have strong unit economics largely driven by the shorter, targeted service offerings — revenue generated per minute of service being an indicator, in addition to labor dynamics and growing membership models,” she said. “It becomes sticky because these concepts lend themselves to consumers who’re on the lookout for convenience and customization, not for the frills of what you would possibly find at a four- or five-star resort spa.” 

Glowbar, founded by Rachel Liverman, exemplifies the no-frills model customers are in search of, as guests wash their very own face to make sure a 30-minute facial. With efficacy top of mind, the corporate has also partnered with clinical brands like Environ and iS Clinical and features technologies including stimulating LED light therapy and acne-fighting high frequency during treatments.

“The more clinical and efficacious you may position your offering, the more it’ll resonate with consumers because the choices that customers have so far as products that they should purchase in retail has improved over the past several years, as evidenced by the rise in clinical skincare and at-home facials, which took share during COVID[-19],” said Hyland.

Heyday, which is predicted to have 50-plus locations by the tip of 2024, is rolling out a line of 19 professional-grade products, which shall be used during facials to push the extent of personalization. Other technology additions include microdermabrasion with diamond tip and microcurrent.

“How we are able to proceed to evolve our core service offerings, but still be a routine space for our clients, that’s what’s core and most vital to us,” said Arielle Mortimer, Heyday’s chief operating officer. “We take the time to get to know you, get to know your skin, get to know your lifestyle, and really make sure that that we’re fitting your skincare routine into what suits you each from a skin type perspective, but additionally your lifestyle.”

As with many fast facial bars, including Glowbar, membership models drive the business. Based on Liverman, the brand has seen 70 percent year-over-year growth with its memberships.

“Individuals are continuing to be enthusiastic about caring for themselves and their skin and prioritizing it,” she said. “There’s zero guilt about time or your pocket… Our hunch was correct that folks really appreciate an accessible facial monthly.”

Glowbar plans to shut the 12 months with 10 locations and expects to double in size in 2024. Silver Mirror, which positions itself as a more luxurious fast facial bar, has seen success with its membership models, as well — memberships have grown five times since pre-pandemic, in line with the brand.

In an effort to distinguish the model, Silver Mirror has doubled down on adding latest services — think hydradermabrasion and jelly masks — and making a more luxurious experience, because it goals to succeed in a GenX and Millennial consumer.

“We’re constantly leaning into that higher end of the market and it’s been tremendously successful,” said Silver Mirror cofounder Matt Maroone. “We’re constantly rolling out latest technologies.”

With investments and overall growth, brands are planning for expansion and experts predict this may proceed through 2024, with several key markets popping up outside of Latest York and Los Angeles. 

“One place that a variety of people wish to scale actually is Texas since it has a bunch of major cities within the state,” said Horvat. “Numerous individuals are talking about general Florida as well.”

Success in these markets shall be key for these businesses. 

“The important thing proof point that a variety of people search for on the finance side of things is demonstrated traction in ‘non-tier 1’ markets,” said Horvat. 

These models are expected to achieve success provided that there are fewer competitors in these markets, experts say. 

“We’re seeing lots more infiltration of those concepts in less urban markets, particularly in high-disposable-income areas which are more residential and have less competition,” said Hyland. “These concepts which are in big cities, there’s almost one on every block, whereas in second tier markets or more suburban areas, there’s just not as much competition for consumers or aestheticians.”

As the expansion of fast facial bars is indicative of larger consumer trends, other spa models are expected to reply. For instance, Hand & Stone, a facial and massage franchise with greater than 550 locations, reports 40 percent of its bookings are for facial treatments. In 2022, the corporate conducted greater than 1.6 million facials, leading to $211 million in revenue and 30 percent year-over-year growth. With this growth, the brand has invested heavily in its skincare business, partnering with clinical brands like Dermalogica and adding latest technologies like LED light therapy, NuFace and DiamondGlow with plans to proceed expanding the menu for added personalization. 

“We’ve spent a variety of time heads down, constructing out this phenomenal menu that we’ll proceed to construct on, we’ll follow the trends, we’ll take a look at what’s next,” said Lisa Rossmann, Hand & Stone’s senior vp, service and product. “For us now we’re more of a sculpting service to come back next.”

While offering unique services and efficacious products are points of differentiation and customer acquisition, experts point to education as a key pillar relating to sustained growth.

“There’s an education and diagnosis component to it,” said Horvat. “It really comes all the way down to aesthetician training. Is it someone that’s customizing the experience to your specific skin conditions, skin concerns, goals, etc. and serving as your partner in crafting a regimen that features facials once a month? Nevertheless it doesn’t just start and end there.”

With the expansion of fast facial bars, additional service locations, including cosmetic dermatology outpost Ever/Body, are gaining traction. Just like the facial bars, Ever/Body, which has amassed $110 million in funding, has its sights set on expansion in similar key markets like Texas.

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