Salon Strives to Be a Cut Above the Rest

There have been two turning points in life for Kay Hirai.

The first was moving to the United States from Kiyushi, Japan, at age 11. The second was a car accident 25 years ago in which her daughter suffered head trauma that left her prone to seizures.

Those events fueled Hirai’s decision “to help people who have barriers to reach their potential.”

Most of the 16 to 18 employees at her two Studio 904 salons--opened in 1982 on Mercer Island and in 1986 in Pioneer Square--are people of color, immigrants or people with disabilities.

“We look for employees who fit into the culture of our community, who work as a team and want to learn from you and pass it on to the customers,” the 56-year-old businesswoman said. “They have to really appreciate the process of lifelong learning.”

Her employees earn salaries rather than working on commission as is common in the industry. They receive health care benefits, paid vacation and sick days, and four hours a week of paid technical training.

Last year, the salon was named one of the country’s most innovative companies by the U.S. Labor Department. It has also been named in a list of best salons and experts in the west by Glamour magazine.

“Great hair services. No tipping. Ask about perm guarantees and for stylist Kay Hirai,” the magazine wrote in a June 1996 article.

Customer Trish Hill, 33, of Des Moines, Wash., has been to the salon four times since reading about it in Glamour and in the weekly Puget Sound Business Journal.

“I come more for the policies than the haircuts--I believe anyone can cut hair,” she said. “I like the fact that they give back to society, especially to the kids [and] that the owner cares enough about the employees to take care of them.”

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The success of stylist Lan Cao makes clear what Hirai is aiming for.

Cao and her sister fled Vietnam by boat in 1984 and eventually settled in the United States. Cao and her husband opened a restaurant. When it failed, the couple and their two children received welfare while Cao attended beauty school at a community college.

Hirai, who gave a presentation to Cao’s class, encouraged her to apply to Studio 904 after graduation. She’s worked there since 1994.

“Without Kay, I don’t know what I would have done,” Cao said. “No one would hire me because of the language barrier.”

Through Studio 904, Cao attended English classes several hours a week until she was comfortable with the language. The salon also provides instruction in social niceties to help with customer relations.

Hirai worked with Cao and her job counselor at the state Department of Employment Security to map out a program that would help the family become self-sufficient. Cao’s husband has since earned an accounting degree through the Central Washington University extension program.

“Today, I am more confident, I make a good wage and I have a bright future,” Cao said.

Studio 904’s turnover rate for employees is 10% a year, Hirai said--a good record in an industry that sees 80% leave the industry within two years of graduating from beauty school.

The salon has a customer base of 5,000, expanding by about 260 a month, Hirai said. Profits are going up steadily as well--from $340,000 in 1993 to $700,000 last year.

Employees receive 25% of the profits in twice-monthly bonus checks.

“Employees set their own goals for salary annually, and we sit down and build a plan to reach it. Amazingly, they always reach their target or do more,” Hirai said.

Salaries range from $20,000 to $35,000 a year. The industry norm is less than $15,000.

“She’s a fantastic person,” said Barry Crosby, owner of Barry’s Barber Shop and, like Hirai, a member of the Washington State Cosmetology Board. “She’s very dynamic and has a great deal of interest in trying to update the profession, particularly the pay scale.”