Townhouse Nail Salons Secure Major Investment for UK Expansion
Townhouse, the United Kingdom's largest luxury nail salon chain, has announced a significant £130 million valuation following a major investment from a prominent US private equity firm. The company, which currently operates 44 upscale nail salons across the UK, is now targeting the development of hundreds of new franchised locations in a bold expansion strategy.
Addressing Decades of Under-Investment
Jonathan Millet, the chief executive of Townhouse, highlighted that the nail care industry has been historically overlooked by investors, particularly when compared to other service sectors. He pointed to a notable gender dynamic in investment patterns over the past few decades.
"I would say there is a little bit of an element of, historically, 20 or 30 years ago, finance and capital being very dominated by men, and this being a sector that primarily serves women," Millet explained to the Press Association. "So if you're a male private equity investor maybe 15 or 20 years ago then maybe it wasn't front and centre of your mind as something to invest in."
He drew parallels with industries such as coffee houses, hotels, gyms, and sandwich shops, which have all experienced substantial chain expansion in recent years. Other segments of the beauty salon sector, including waxing and massage services, have also begun to grow with brands offering a "Starbucks-esque experience" after years of lagging behind.
Private Equity Backing and Expansion Plans
The new investment comes from Cartesian Capital, the US private equity firm known for its involvement with the Burger King and Tim Horton chains in China. This financial backing is set to propel Townhouse's ambitious growth strategy.
The business has already secured commitments for approximately 149 new sites over the next five years, with an additional 350 locations in advanced negotiations. This expansion is projected to bring the chain to around 500 salons internationally and create an estimated 5,400 new jobs.
Founded in 2018 by Juanita Huber-Millet and led by her husband Jonathan Millet, Townhouse operates in the premium to luxury market segment, with treatment prices ranging from about £30 to £100. The company is predominantly focused in London but has also established salons in major cities including Manchester, Bristol, and Leeds.
Improving Industry Standards and Working Conditions
Millet also addressed longstanding issues within the nail industry, which has been plagued by poor working conditions, a lack of formal employment contracts, and even cases of modern slavery.
"In our industry there has historically been quite a lot of exploitation of workers," he stated. "When Covid hit, there were a lot of people in the industry who didn't have contracts, who were just being paid cash in hand, so they didn't get government relief. And we still see a lot of people, as we're recruiting, who have worked in the industry and not had contracts – all the way through to, less pervasive but there, some elements of trafficking and indentured labour."
In contrast, Townhouse emphasizes its commitment to ethical employment practices. The company offers its nail technicians above-market pay, private healthcare, paid leave, and structured career progression opportunities. This approach extends to their operations in the United States, where they currently have a handful of stores.
Market Resilience and Consumer Demand
Millet suggested that nail care services demonstrate resilience during economic downturns, as consumers often maintain their beauty routines as a small luxury.
"We see people who may need to cut down in some parts of their lives really keep up their beauty regime because it's that small moment of luxury," he noted. "It's not affordable for everyone, but it's a price that people are willing to pay."
The UK market currently lacks major nail salon chains, with the sector typically dominated by independent and boutique shops. Townhouse's expansion aims to capture this turning point in the industry, bringing chain-scale operations to a fragmented market that has long been underserved by institutional investment.
