BI Advisory Committee Objective: Determine necessary improvements to our business intelligence tool and the ranking of tasks.

AREAS OF FOCUS Data Warehouse • The Azure data warehouse is puling data from Zenoti (Redshift) • Azure is pulling Franconnect date through the Franconnect API • Azure data is available by 8am Power BI Progress • Wireframes were approved for the Supply & Demand report • Supply & Demand report development started. Completed 7 out of 10 sprints. • We are expecting a 2-week UAT on the corporate spas and then we will extend UAT to some members of the BI Advisory Committee. • Corporate BI Team training will begin 3/27 • Report iterations will continue throughout UAT

Committee Members Brock Clayton Marlow Metcalf Andy Johnson Mark Reisinger Rajib Sarkar Matthew Schupbach

Topics for next meeting • Replacement for Mike Hendershott on the Committee • Roadmap

Next Meeting 4/12

Brand Experience Committee Objective: Using the SMG platform and anecdotal feedback, we will look for trends and opportunities to improve the customer experience. This committee will also provide input on impact of proposed changes to spa level policies and procedures.

Committee Members

Agenda – 3/15/23 1.

Status of Service Orientation Form – reviewed best practice for scripting – facial form to follow

Cindy Meiskin Nancy Nitti Kathleen Korbett Henry Mandell

2. Update on Quality Control Program – reviewed

Robin Prideaux

summary data from the 192 surveys

Ayesha Patel

3. Review Attention Button contest and continued

Marie Ruiz

awareness issue 4. Update on Epic technology 5. New Policy with attendant in room with Male LEs

Nicole Davis April Schambeck

6. Soothe discussion – group would like more information. Nicole has worked for them. Set up group call. 7. DiamondGlow forms – rate of download, can it be removed?

Next Meeting: June 15th @ Noon ET

Chelsea Adams

Customer Experience Committee Committee Members Cindy Meiskin Nancy Nitti Kathleen Korbett Henry Mandell Robin Prideaux Ayesha Patel Marie Ruiz

Next Meeting:

Product & Service Innovations Committee Objective: Review of new concepts & existing service and product portfolio. The committee assesses which concepts should be placed into a limited location test, reviews the projected incremental revenue and ROI for each concept, and the impact on the guest experience.

COMMITTEE INPUT

Category One: Brand Positioning Innovation •

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ClarityRx Super Social Program: Will invite guests to post content on their facial experience, tagging the spa for a chance to win product. Double Mission: Campaign invites influencers to inquire about barter collabs. Alle Rewards Program Rollout Status: 115 spas enrolled, first round of $30 rebate cards distributed to participating and active locations to offer as promotion to new or existing DG customers. Dermalogica Service Rebrand & Web Booking Integration with Dermalogica.com: Launched March 21st to chain. All Dermalogica Exceptional Facials rebranded to align with Derm. pro service menu. Addition of 50 minute ‘bundled’ facial services for spas to activate. Massage: Rebrand of DCT to Gliding Cupping Massage: May 2023

Category Two: Active in Test Cryosoothe: Wave Two launched early March. Continuing to iterate training process for MTs.

Category Three: Upcoming Launch

• IMAGE Skincare: TBA Determination of National Launch. Announcement in Q2.

Committee Members Lisa Rossmann Jaclyn Palmieri Carrie Wiedemann Nathan Nordstrom Kristen Tulp Tina Kirch Tara Mclain Chrysse Preonas Ayesha Patel Rajib Sarkar Chanel Grant Tara Bogota

Category Four: For Review •

Additional CBD Retail Line: For review: Hemp Nature and CBD Healthcare, The group favored Hemp Nature. This would be offered as an additional optional retail only collection.

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Healthy Line Rainbow Chakra Mat: Offered as standalone service for 30 or 50 minutes. Offers benefits or relaxation, far infrared, PEMF, red light photon therapy. Group approved test in limited locations.

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Seasonal Body Wrap: Reviewed by group, ready for test in limited locations.

Category Five: 2022 Ancillary Retail & Low Performing Service Review

Next Meeting 5/23

Recruiting, Retention, & Education Committee Marketing & Promotions Objective: Create executable, scalable solutions to recruiting and retaining talent within our spas. This committee will explore shortand long-term initiatives that improve our candidate selection and overall employee experience.

DISCUSSION POINTS RECRUITING - Careers Site SEO revision

Maureen: We are looking to increase the SEO of the career site. If you look at other companies, for example, ME-they have a lot more traffic. We hired an outside company who is helping to increase and drive traffic to our career site. Q. Do you think anything is missing from our current website? ▪ videos/images need to be updated; nothing has changed for years. ▪ corporate looking and very boring. Something to be said on how to attract people when thinking about MT’s and how they are creative people. ▪ Need more focus on tuition reimbursement, having your school paid for, new career ▪ Missing our core values – Innovation, Education, Safety ▪ The word safety means so much to so many people. We are not seeing the word ‘safety’ here. ▪ Consider the demographic of our future massage therapists. A majority will probably see this page on their phones. Less words, primarily video. Q. How do you feel about guest blogs from different franchisees/why they are with hand and stone and about their team? ▪ snippets from MTs would be more impactful than owners having a “scripted moment”. ▪ spa employees would be so grateful to be chosen to be a part of this initiative - excited to share their story. ▪ 10-year tree at kid’s camp. Super cool to have corporate do something to recognize long tenured employees.

EDUCATION - Open Houses

Sooki: We want to expand the existing open house concept within the education portion of the student program. Multi-unit owners, Bryn and Joe Erace, are hosting an upcoming student recruitment day for Quartermaster’s location where MPower will have enrollment specialists on-site. Q. Do any franchise committee members hold open houses for massage students? What are your initial thoughts on offering an open house to prospective massage students? ▪ No one on the line offers open houses for students. ▪ Debbi does invite students into the spa for complementary services. ▪ Who are we targeting for this event? Curious to see where the students come from/background/hear a little more about the student demographic. ▪ Estheticians wanting to be dual licensed is a good target (This is where Kim’s students came from)

RETENTION – next Employee Engagement Survey through goHappy

Context: next survey scheduled for April 24th Q. How do we increase employee participation? ▪ Can we include a $5 gift card to Starbucks? (goHappy said we cannot deliver it to someone if you need them to remain anonymous) ▪ First-year franchisees did not know about it (reshared outline in Newsletter) **Meghan redirected** Q. Do your employees believe completing these surveys will lead to positive change? Would you pay for this service if it wasn’t absorbed by corporate? ▪ Immediate ‘no’ from every committee member ▪ Owners do not feel they can “fix” any of the issues the employees report/They feel powerless to the results and comments ▪ Biggest example is pay-based issues. Three committee members have tried many times to explain the owners’ costs to explain the commission structure. Maureen- “I think there is a lot of emotion there on the employee side. They don’t know how else to verbalize it. They don’t feel they are getting enough appreciation. I think there are other things there and I don’t know how to peel all of the other layers back. There is usually something else there too not just pay.”

NEW! Committee Moderators Meghan Lally Maureen Brent Natalia Jarmick Sooki Jennings

NEW! 2023 Committee Members Debbi Gulledge Kim Cagle Ed Oursler

Next Meeting Sindy Vasquez TBD Michael Porter

Lorine Grosso

Next Meeting 4/14

Unit Level Economics Committee Objective: Members will provide input on how to best maximize unit level profitability. This includes the development of recommended chart of account committees, and the establishment of financial and operational benchmarks. The committee’s mission will be to understand how to best maximize unit 1 level profitability at every level of ownership and spa-maturity.

Under Review: • • • •

Reviewed last year’s chart of accounts and where the committee left off Marco provided his chart of accounts and gave an overview. Discussion about determining what is the common denominator and definitions? Example: Royalty GMS Free cash flow is one of the most important metrics we understand, and we should have a range that we are looking at for the revenue of the spa. Findings that current locations doing $1.5 million are not showing the cash flow that is expected. We need to be a business that is not too complex to run from a cash flow perspective.”

Committee Moderators Brooke Culver

Shane Kirner

Committee Members Kyle Butrymowicz Ken Silbert Rob Mcbride Erik Bostrom Nick Marco Brian Nulty Eric Danver Eric Stahl

Upcoming: •

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Subcommittee of Silbert, Marco, Brooke, and Shane has met twice to finalize chart of accounts • Second meeting aligned on final chart of accounts and Shane to distribute final version • Began mapping spa owners P&Ls to COA to begin to develop KPIS Internal weekly or bi-weekly meetings with the subcommittee are currently underway

Anita Wells Marlow Metcalf

Next Meeting 4/20