Franchise News Release: Marrero, LO - (Sep-20-2005)

Planet Beach projects sunny N.O. outlook

Planet Beach Franchising Corp. has reopened its Marrero corporate headquarters on Taravella Road while running its Franchise sales department from a temporary office building in Houma.

Planet Beach has 300 tanning spa salons throughout the United States, Canada and Australia, including 25 in New Orleans and two in Gulfport and Biloxi, Miss.

Planet Beach CEO Steve Smith said salons in Chalmette, Meraux and Lakeview were destroyed but Franchises in Covington, Hammond, Mandeville and Biloxi have reopened. Smith said the decision to reopen ruined stores in the same or a different location is up to the franchisee. Smith estimates Planet Beach lost about 5 percent of its revenues to Hurricane Katrina. The company projects $25 million in revenue in 2005 after making $16 million in 2004.

“The good part about our business is we have 95 percent of our franchise stores dispersed outside of the New Orleans area and up and running, and when New Orleans comes back, you may see different locations for our salons but you will see the same franchise presence,” Smith said. “We realize it will be awhile before anybody is in the mindset of wanting to relax at our tanning salons, but for us, it’s an opportunity for renewal; we’re working with our franchisee owners to get their salons open and looking better than before.”

The Marrero corporate warehouse had minimal damage with a sign blown down and a few shingles missing on the awning of the building, according to Smith.

Smith said the Planet Beach disaster contingency plan directed vendors to send tanning products directly to franchisees instead of the Marrero warehouse.

Smith said he initially saw the news of Hurricane Katrina while on a cruise in the Mediterranean.

“I turned on the TV in Barcelona, and it was on every international news station,” he said. “I’ve seen this hurricane drill for 15 years. I knew a hurricane was coming and I figured we might get some wind, some rain damage, but never imagined anything like this, and I was in total shock watching everything fall apart on TV.

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