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Retail and Real Estate
Upscale tanning salon hoping to sizzle in LV
By Mark Hansel / Staff Writer
The 1050 Ergoline tanning bed is shown at Sunset Tan in Palms Place.
STEVE MARCUS / STAFF PHOTOGRAPHER

The owners of Sunset Tan are looking to cash in on the national exposure a television show provides by beginning an aggressive franchise expansion.

The upscale tanning salon has gained a nationwide audience since the E! cable television station launched a reality series called "Sunset Tan," focused on a Los Angeles store, last year.

Sunset Tan opened a location inside Palms Place in March, and George Maloof, an owner of Palms Place and the Palms as well as the National Basketball Association's Sacramento Kings, is one of its investors.

"We actually launched our franchise business last October at the World Tanning Convention in Nashville, (Tenn.)" said Jeff Bozz, co-founder of Sunset Tan. "Being on E! is like having a $15 million commercial going for you 10 or 15 times a week."

Cable television stations often air the same episode of a show several times a week.

As a result of the exposure, Bozz says, the Sunset Tan Web site went from getting a few thousand hits a month before the show to about 2 million hits a month after the show began airing.

The expansion plans and the introduction of a more complete product line will be the focus of Season 2, which will air this summer. The hope is that the exposure will create interest in the new product line at existing locations, as well as some anticipation in the new markets.

Unlike other reality-based shows, such as "Inked," a show about a tattoo parlor, the company name is also included in the show's title, which helps make the show and the brand synonymous.

Branding was one of the reasons Bozz and his partner, Devin Haman, welcomed Maloof as an investor.

"George is clearly a master at creating a brand," Bozz said. "The thing he's done at Palms Place with letting the show come in and film, and his creative ways of branding and marketing will be a huge plus for us."

For his part, Maloof, who calls himself a minor investor, said he is eager to help the brand expand.

"I'll do whatever (Bozz and Haman) ask me to do," he said.

Maloof got involved through a friend who also knows a little bit about creating a successful image.

Larry Rudolph, who was business manger for Britney Spears during her rise to stardom and also owns a piece of Sunset Tan, convinced Maloof the company was a good investment.

"I've done a few things with Larry at the Palms that have worked out well, and Sunset Tan seemed like a good fit for us," Maloof said.

Maloof said there is a big demand for tanning services among Palms visitors and the franchise allows him to keep guests on property, which is every casino owner's goal, especially those with off-Strip properties.

The owners of Sunset Tan, Devin Haman, left, and Jeff Bozz are shown in the downstairs lobby of Palms Place.
PHOTO COURTESY OF SHANE O'NEAL

Once guests leave, the lure of the Strip and the city's other enticements could keep them away for awhile. By offering as many services as possible on-site, the temptation to go, or maybe even initially to stay, elsewhere is diminished.

Maloof agrees that the allure of Las Vegas for the 21- to 34-year-old visitor has increased in recent years, and that the Palms welcomes that crowd.

He scoffs at the notion that efforts to cater to this demographic have come at the expense of older guests, however.

"I don't agree that (the younger guest) is the future of the city," Maloof said. "There's no question that there are more things for younger people to do, but Las Vegas appeals to everyone, and if you live here there's almost too much to do."

The recent resurgence in tanning has mirrored the city in that regard. It is popular among young people, but is also attractive to older guests who enjoy the tanned look, but don't want the exposure to the elements.

"It's really more of a lifestyle thing," Bozz said.

Sunset Tan, like the Palms, caters to an upscale clientele, and Bozz said that will be important when choosing franchise sites.

"Ideally we would like a population base of at least 150,000 people and a median income of about $50,000," he said.

Initial target markets include Florida, Boston, New Jersey, Arizona, Colorado and Texas.

Since the show began airing, interest from the international market has also increased, Bozz said, with inquiries from Australia, New Zealand and even Nigeria.

The company has about 100 franchises now and has a goal of 500 in the next five years.

The franchise fee is $40,000, with an initial investment ranging from $250,000 to $600,000, depending on lease rates and whether equipment is rented or purchased.

The operation is completely turnkey, and an extensive training program is provided.

The company also has perks few others in the business can offer, including celebrity endorsements and an appearance by cast members from the show at grand openings.

Not to mention that $15 million commercial that airs 10 times a week on E!.

Mark Hansel covers retail and real estate for In Business Las Vegas and its sister publication, the Las Vegas Sun. He can be reached at 259-4069 or at hansel@lasvegassun.com.

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