Bill Zanker, 42, is one of those quirky entrepreneurs always on the lookout for the Next Great Idea. Jogging through San Francisco's Golden Gate Park one day, he spotted a man offering massages for $1 a minute. "He was dirty, he looked homeless, and yet people were lined up," recalls Zanker. "I thought, 'What a great idea.'" Browsing the Sharper Image, he found an array of massage-related products that sent his mind spinning. Thought he: "There's got to be a way to bring stress reduction to the masses." Eureka! Zanker opened the first Great American BackRub store in 1993 in Manhattan.
Taking what he calls "the McRub approach," the hyperkinetic Zanker merged the retail concept with the massage-notions business to create a chain that sells fast, convenient--and fully clothed--massages and massage gadgets. Last February Zanker raised $6.2 million in a public offering. Today there are 15 branches in New York City, Chicago and Denver. Forty more branches are set to open mainly through franchises in eight new markets. Says he: "I see it as the Starbucks of the year 2000. We could put one every two to three blocks." Now you know why he's an entrepreneur.
Long relegated to the ranks of sybaritic pleasure or illicit sex, massage is emerging as a form of body maintenance. Americans spend $24 billion a year to cure back pain. GABR masseurs are licensed and receive company training to standardize treatment. A 10-min. back rub costs $14.95, a 45-min. version $49.95. Says Mary Trudel, 43, who works in a Manhattan public relations firm: "I eat lunch at my desk and come in here for a treat. After a 10-min. rub, I feel relaxed and rejuvenated."
Investors, however, have felt some back pain. The stock (RUBB) opened on NASDAQ at $5, yet closed last week at $3.75. Revenues through the third quarter ($1.97 million) nearly tripled last year's, but GABR lost $1.62 million. Still, Zanker is plunging ahead, selling franchises that cost between $69,950 and $134,000 a pop.
Is RUBB for real? Zanker has felt the entrepreneurial tide turn against him before. He founded the Learning Annex, an adult-education business, but overexpansion and mounting lawsuits led him to sell his stake in a prepackaged bankruptcy in 1991. But competing massage outfits like Healing Hands of New York City are opening up shop, a good sign, says Zanker. "It's a huge market--you know how many backs there are in America? [263,814,032, to be exact]--and we can't possibly do them all." No, but he can sure try.
--By Stacy Perman