Why Hand & Stone Is Leaning Into Relaxation as the Focus, Not an Afterthought

Chief revenue officer Sherrill Kaplan spoke to ATN about Hand & Stone’s expansion strategy, membership economics and in-spa operations as the franchise spa brand scales beyond 600 locations

As the wellness services sector continues to grow, operational discipline is becoming increasingly important to franchises. Scalability and unit economics are becoming defining factors for successful brands.

At Hand & Stone Massage and Facial Spa, chief revenue officer Sherrill Kaplan has been focused on redefining the operational backbone of the franchise system, from development strategy and site selection to technology and the in-spa guest experience.

When Kaplan joined, Hand & Stone already operated more than 600 locations across North America, supported by a membership-based model driving recurring visits.

“With a strong membership model and more than 600 locations, the brand already had a very solid foundation when I joined,” Kaplan told Athletech News. “What excited me most was the opportunity to build on that momentum.”

Strategic Positioning

One of Kaplan’s early priorities was reinforcing Hand & Stone’s identity. As new categories such as recovery studios and specialized skincare concepts emerged, Kaplan worked to position the brand around a promise for relaxation, which increasingly had become a byproduct of many wellness offerings.

“What stood out to me is that while wellness has evolved in many directions, no brand has truly centered itself around relaxation in a meaningful way,” Kaplan said. “Given our scale and accessibility, we’re in a strong position to lead that brand positioning.”

The membership model remains one of the most important operational drivers for the brand.

“Wellness, including services like massages and facials, is no longer viewed as a luxury. It’s essential,” Kaplan said. “Consumers who walk into our spas expect consistent, convenient experiences that fit into their routines. Our flexible membership model and digital booking tools make regular spa visits seamless. They help guests integrate wellness into their everyday lives.”

Expansion Discipline

Kaplan has also introduced a more structured approach to franchise development, particularly around real estate strategy. Site selection has become a highly analytical process aimed at maximizing accessibility and repeat visitation.

“We take a highly data-driven approach to site selection, prioritizing locations that fit naturally into consumers’ daily routines,” Kaplan said.

Convenience is a key variable in membership-driven businesses, so the company prioritizes highly visible locations in areas where wellness services can easily fit into consumers’ daily routines.

“Accessibility is a key to our membership model, so we focus on sites that are both convenient and highly visible,” she noted.

The company has also adopted a more opportunistic approach to market entry. In some cases, Hand & Stone acquires underperforming or shuttered competitor locations, allowing the brand to enter markets with established demand while leveraging existing infrastructure.

“This approach enables us to grow strategically while positioning each location for long-term success,” Kaplan said.

Improving Unit-Level Operations & Product Innovation

Beyond development strategy, Kaplan has focused on operational improvements within the spas themselves.

“We’re focused on enhancing both the guest experience and the franchisee business model,” Kaplan said. “That includes introducing innovative treatments and investing in technology that improves operational efficiency.”

One example is the company’s updated booking platform, which simplifies scheduling and reduces administrative tasks at the front desk.

“Our new booking flow streamlines scheduling and reduces administrative tasks,” Kaplan said. “That allows front desk teams to focus more on hospitality.”

Kaplan is also overseeing the introduction of new service innovations designed to keep the brand competitive as the wellness industry evolves. These include partnerships with skincare brands and emerging technology providers.

“From enhancements to our long-standing Dermalogica LuminFusion partnership, to new product innovation with Image Skincare, to the introduction of Aescape’s AI-powered robotic massage technology, we’re investing in solutions that meet guests at the intersection of relaxation and performance,” Kaplan said. “The lines between wellness, beauty and healthcare continue to blur. Consumers increasingly seek services that help them look and feel their best.”

What’s Next?

Looking ahead, Kaplan says the company’s success will be defined by several key operational metrics. These include growth in membership, increased brand awareness and continued expansion of the franchise network.

“We’re focused on driving net-new consumer acquisition, increasing franchise interest and growing brand awareness through strategic marketing and PR initiatives,” Kaplan concluded. “Success means continuing to reinforce our position as a trusted destination for routine relaxation.”