Case Study

Please answer the following Case Study Questions: 1 What part of the business model did Alli Webb keep consistent? 2. What challenges did the business experience from opening the first location? 3. Was hiring a CEO a difficult hire for the founders and why? What was the end result? 4. We have discussed hiring and partnering with family members in starting a business, How did this situation work out for Alli Webb? 5. What impresses you the most about this start up business? (Five things) Business/Unusual openea, Comers would come in and I would tell them liter ally everything about the busi- ness, because I was so proud. And then we started seeing similar models open up n 2008, after five years as a stay-at-home mom, hairstylist Alli Webb was ready for some grown-up time. She started traveling from home to home in Los Angeles, providing affordable blowouts (that's a wash, a dry, and a style, gen- tlemen) to other moms who, like her, were eager for a small break from nonstop responsibilities. Nearly a decade later, Webb's brainchild has grown into Drybar, a blowouts-only salon chain beloved by women across the country. The bar- themed business-styles offered include the Cosmo (loose curls) and the Mai Tai (beachy Waves)-is chic and girly, and serves up as many mimosas as hairstyles in a given day. As the business pre- pares to open its 100th location and eyes international expansion, Webb is the first to admit that she and her cofounders-who are also her husband and her brother-are still learning as they go. People actually copied the model and opened shops where Brybar already existed? Yes! One woman came in, asked me a bunch of questions, and then opened her own store. She even wrote me a letter mot apologizing wing two pero with my time and she was feeling guilty. Not we always knew that if this took off, there would be competition. We didn't know people would take actual verlage from our web- site and put it on theirs, which has happened, but we knew there would be competition But you can't really duplicate what we do just by hiring som stylists and making a space look cute. We've got a secrets DOWNTOWN 14 / ENTREPRENEUR.COM / October 2017 POWER TOOLS Alli Webb styles an employee's hair with a Drybar- developed hairdryer. Drybar is approaching 100 locations after just seven years in business. How do you keep the service consistent at scale? It's one of the biggest challenges we face. We've learned how to make good stylists great through our training programs and audi- tion processes, but it is tough, especially in some smaller cities. New York and LA. are ripe with stylists with a lot of experience, but we definitely have challenges in smaller cities. And we don't run an actual school-not yet, anyway--but we've got a robust training program to teach our signature tricks and styles. The best compliment I can get is from a woman who travels a lot and can depend on Drybar in any city. The company has really made blowouts ubiquitous and inspired quite a few copycat businesses along the way. It's funny because when we first opened, customers would come in and I would tell them liter- ally everything about the busi- The Drybar experience really is unique, from the chick flicks that play on a loop In the salons to the actual cocktail-themed hairstyles Do you ever worry about it feeling gimmicky? Oh, I worry about that. I've always worried about that When we were starting out my brother thought naming the styles the Manhattan or the Cosmo wis cheesy. My gut told me women were going to love it, but moving forward we have tried to maintain a kind of sophisticated whimsy. There are a lot of checks and balance to keep it from feeling willy1r my husband shows me some thing new for being there have been times when I've had to say, "I don't know, babe, it little too far"When we talk about ideas among three cofounders, one of us really doesn't like it, we don't do it You started selling your own haircare tools and products a few years ago. The growth was rapid, and they're now sold in your shops as well as Sephora and Ulta. Are those retail outlets helping people discover Drybar? Absolutely and the products account for almost 30 percent of our revenge now. When we started taking off we were courted by a lot of hair product companies that wanted to cre e a cobranded line with but Janet Garwitch, one of our investors at private equity fim Castanea Paren, told me to do it alone. Janet had founded Laura Mercier Counties, and berpuldance and expertise became tatrumental in product development. She opened a lot So what changed your mind? It wasn't until we met John- whose exterior does not match his interior. He walked into our office in a suit, very corporate-looking and my in tal thought was ih, no. But after five minutes with him, Michael and I were both pretty much in love. Landau remains chiman of the board. Unlike a lot of people we had spoke to, John really wanted to partner with us He didn't want to come in and totally shake thing, because we didn't need that Castal thinking was if this thing was going to get huge, w weren't going to know how to deal with it. And they wricht have very specific skill sets and really trust each other. That sald, there have been fights. There are times when wedis Agree, and the family of this all gets cry. Sometimes I'm being really nice to my husband, dll be like. Are you fighting with Michael Is that why you're being nice to melt we're good shoot higit out-specially my brother and I bowe w up in a family where you don't let things linger Mynd grew up ind of different lot that baby mother intense You're very transparent about changes within the company from service changes to 66 WE COULD OFFER A LOT OF SERVICES OTHER THAN BLOWOUTS AND PROBABLY BE OKAT ALL OF THEM BUT TD RATHER BE REALLY GREAT AT THIS ONE THING WELL NEVER DO ANYTHING OUTSOEGF BLOWOUTS Do you feel pressure to expand beyond blowouts? 66 WE COULD OFFER A LOT OF SERVICES (OTHER THAN BLOWOUTS] AND PROBABLY BE OK AT ALL OF THEM BUT I'D RATHER BE REALLY GREAT AT THIS ONE THING. WE'LL NEVER DO ANYTHING OUTSIDE OF BLOWOUTS." of doors for us and introduced me to all the best labs. I always say. Find people who know how to do the shit you don't. Without Janet, these partners would not have talked to us. to say, "I don't know, babe; it's a little too far. When we talk about ideas among us three cofounders, if one of us really doesn't like it, we don't do it. Do you feel pressure to expand beyond blowouts? Everyone asks me that ques tion. From our investors per spective, we have this captive andience of 100-plus women a day coming into each shop-we can probably sell them a lot of things. But it feels like it would take away from the authentic ity of the brand. Nobody likes being solicited to, and I don't want to upsell people. And from our customers perspective, a lot of women have asked me, "Can't you just give me a manicure while I'm sitting here getting my hair done? And sure. We could. We could offer a lot of services and probably be OK at all of them. But I'd rather be really great at this one thing We'll never do anything outside of blowouts Not in Dryba "Tools and products make sense you want to replicate your hairstyle--but I couldn't sell you, lipstick in good conscience In 2014 you replaced your brother and cofounder, Michael Landau, as CEO and brought in John Heffner, who had served as president at OPL. How tough was that decision? It wasn't one I was parties larly excited about. Our equity partners Castanea started that initial conversation with Michael and me, and at first, I was like "No.I was kind of a brat about it. I thought it would change the company culture, and I didn't thinka professional CHO would be able to do anything we already managing What's different under his Internal changes. The website leadership? even calls John Heffner We were on a rocketship your big fancy professional little bit, opening stores so CEO." Why is that? fast. And as entrepreneurs We We've always taken that didat have the said to scale approach, instinctively. Just be a business. But John did and Straight with people. When we hemmediately patsystem botol prices from 10 in plan, hired great people to $45. we emailed customen and let them do the job. He deplined that the increase also hit the brakes Jowed because current was down on openings and made rused, and our utility.com sure all the ins were in - to stay in bo on time in terms of operations not to try and other He helped create a calming And if up an appoint sense throughout the company mentorshop Is the the adult in the roof with their service, they need to this very family-run business know we're working to www.myvas It can't been running a personally in this company with your husband where you reach and brother as cofounders. founder viser Idsy 95 percent of the time or whatever, it our job to Do It's ally creat. They ret feed people but he two best friends, and we all they through it October 2015 Please answer the following Case Study Questions: 1 What part of the business model did Alli Webb keep consistent? 2. What challenges did the business experience from opening the first location? 3. Was hiring a CEO a difficult hire for the founders and why? What was the end result? 4. We have discussed hiring and partnering with family members in starting a business, How did this situation work out for Alli Webb? 5. What impresses you the most about this start up business? (Five things) Business/Unusual openea, Comers would come in and I would tell them liter ally everything about the busi- ness, because I was so proud. And then we started seeing similar models open up n 2008, after five years as a stay-at-home mom, hairstylist Alli Webb was ready for some grown-up time. She started traveling from home to home in Los Angeles, providing affordable blowouts (that's a wash, a dry, and a style, gen- tlemen) to other moms who, like her, were eager for a small break from nonstop responsibilities. Nearly a decade later, Webb's brainchild has grown into Drybar, a blowouts-only salon chain beloved by women across the country. The bar- themed business-styles offered include the Cosmo (loose curls) and the Mai Tai (beachy Waves)-is chic and girly, and serves up as many mimosas as hairstyles in a given day. As the business pre- pares to open its 100th location and eyes international expansion, Webb is the first to admit that she and her cofounders-who are also her husband and her brother-are still learning as they go. People actually copied the model and opened shops where Brybar already existed? Yes! One woman came in, asked me a bunch of questions, and then opened her own store. She even wrote me a letter mot apologizing wing two pero with my time and she was feeling guilty. Not we always knew that if this took off, there would be competition. We didn't know people would take actual verlage from our web- site and put it on theirs, which has happened, but we knew there would be competition But you can't really duplicate what we do just by hiring som stylists and making a space look cute. We've got a secrets DOWNTOWN 14 / ENTREPRENEUR.COM / October 2017 POWER TOOLS Alli Webb styles an employee's hair with a Drybar- developed hairdryer. Drybar is approaching 100 locations after just seven years in business. How do you keep the service consistent at scale? It's one of the biggest challenges we face. We've learned how to make good stylists great through our training programs and audi- tion processes, but it is tough, especially in some smaller cities. New York and LA. are ripe with stylists with a lot of experience, but we definitely have challenges in smaller cities. And we don't run an actual school-not yet, anyway--but we've got a robust training program to teach our signature tricks and styles. The best compliment I can get is from a woman who travels a lot and can depend on Drybar in any city. The company has really made blowouts ubiquitous and inspired quite a few copycat businesses along the way. It's funny because when we first opened, customers would come in and I would tell them liter- ally everything about the busi- The Drybar experience really is unique, from the chick flicks that play on a loop In the salons to the actual cocktail-themed hairstyles Do you ever worry about it feeling gimmicky? Oh, I worry about that. I've always worried about that When we were starting out my brother thought naming the styles the Manhattan or the Cosmo wis cheesy. My gut told me women were going to love it, but moving forward we have tried to maintain a kind of sophisticated whimsy. There are a lot of checks and balance to keep it from feeling willy1r my husband shows me some thing new for being there have been times when I've had to say, "I don't know, babe, it little too far"When we talk about ideas among three cofounders, one of us really doesn't like it, we don't do it You started selling your own haircare tools and products a few years ago. The growth was rapid, and they're now sold in your shops as well as Sephora and Ulta. Are those retail outlets helping people discover Drybar? Absolutely and the products account for almost 30 percent of our revenge now. When we started taking off we were courted by a lot of hair product companies that wanted to cre e a cobranded line with but Janet Garwitch, one of our investors at private equity fim Castanea Paren, told me to do it alone. Janet had founded Laura Mercier Counties, and berpuldance and expertise became tatrumental in product development. She opened a lot So what changed your mind? It wasn't until we met John- whose exterior does not match his interior. He walked into our office in a suit, very corporate-looking and my in tal thought was ih, no. But after five minutes with him, Michael and I were both pretty much in love. Landau remains chiman of the board. Unlike a lot of people we had spoke to, John really wanted to partner with us He didn't want to come in and totally shake thing, because we didn't need that Castal thinking was if this thing was going to get huge, w weren't going to know how to deal with it. And they wricht have very specific skill sets and really trust each other. That sald, there have been fights. There are times when wedis Agree, and the family of this all gets cry. Sometimes I'm being really nice to my husband, dll be like. Are you fighting with Michael Is that why you're being nice to melt we're good shoot higit out-specially my brother and I bowe w up in a family where you don't let things linger Mynd grew up ind of different lot that baby mother intense You're very transparent about changes within the company from service changes to 66 WE COULD OFFER A LOT OF SERVICES OTHER THAN BLOWOUTS AND PROBABLY BE OKAT ALL OF THEM BUT TD RATHER BE REALLY GREAT AT THIS ONE THING WELL NEVER DO ANYTHING OUTSOEGF BLOWOUTS Do you feel pressure to expand beyond blowouts? 66 WE COULD OFFER A LOT OF SERVICES (OTHER THAN BLOWOUTS] AND PROBABLY BE OK AT ALL OF THEM BUT I'D RATHER BE REALLY GREAT AT THIS ONE THING. WE'LL NEVER DO ANYTHING OUTSIDE OF BLOWOUTS." of doors for us and introduced me to all the best labs. I always say. Find people who know how to do the shit you don't. Without Janet, these partners would not have talked to us. to say, "I don't know, babe; it's a little too far. When we talk about ideas among us three cofounders, if one of us really doesn't like it, we don't do it. Do you feel pressure to expand beyond blowouts? Everyone asks me that ques tion. From our investors per spective, we have this captive andience of 100-plus women a day coming into each shop-we can probably sell them a lot of things. But it feels like it would take away from the authentic ity of the brand. Nobody likes being solicited to, and I don't want to upsell people. And from our customers perspective, a lot of women have asked me, "Can't you just give me a manicure while I'm sitting here getting my hair done? And sure. We could. We could offer a lot of services and probably be OK at all of them. But I'd rather be really great at this one thing We'll never do anything outside of blowouts Not in Dryba "Tools and products make sense you want to replicate your hairstyle--but I couldn't sell you, lipstick in good conscience In 2014 you replaced your brother and cofounder, Michael Landau, as CEO and brought in John Heffner, who had served as president at OPL. How tough was that decision? It wasn't one I was parties larly excited about. Our equity partners Castanea started that initial conversation with Michael and me, and at first, I was like "No.I was kind of a brat about it. I thought it would change the company culture, and I didn't thinka professional CHO would be able to do anything we already managing What's different under his Internal changes. The website leadership? even calls John Heffner We were on a rocketship your big fancy professional little bit, opening stores so CEO." Why is that? fast. And as entrepreneurs We We've always taken that didat have the said to scale approach, instinctively. Just be a business. But John did and Straight with people. When we hemmediately patsystem botol prices from 10 in plan, hired great people to $45. we emailed customen and let them do the job. He deplined that the increase also hit the brakes Jowed because current was down on openings and made rused, and our utility.com sure all the ins were in - to stay in bo on time in terms of operations not to try and other He helped create a calming And if up an appoint sense throughout the company mentorshop Is the the adult in the roof with their service, they need to this very family-run business know we're working to www.myvas It can't been running a personally in this company with your husband where you reach and brother as cofounders. founder viser Idsy 95 percent of the time or whatever, it our job to Do It's ally creat. They ret feed people but he two best friends, and we all they through it October 2015