Lausanne barbershops stay open despite reported losses

Two barbershops observed in Lausanne had low customer numbers, yet remain in business, SRF reports, citing an investigation by French-speaking Swiss broadcaster RTS. The findings raise questions about how some salons stay afloat.

At one salon, haircuts cost 25 to 27 Swiss francs. During a week of observation, three hairdressers were present for 11 hours at a time but spent much of that time waiting on a terrace outside. The shop averaged fewer than 10 customers per employee each day. It has been open since 2018.

Damien Ojetti, president of the Coiffure Suisse association, said the first salon would need about 16 customers per employee to be profitable under those conditions. With around 10, he said, it would face heavy daily losses.

The second, a large salon on a busy street in central Lausanne, has operated since 2021. Its haircut prices are around the average. RTS counted eight customers on one weekday and an average of 15 to 20 customers per employee on the other days observed. Its higher fixed costs mean it needs to operate at full capacity to avoid bankruptcy, but the observed customer numbers could allow it to survive, the report said.

Neither salon agreed to comment. RTS did not identify them, saying the limited observations cannot establish financial irregularities, which could only be confirmed or ruled out through official accounts.

Tax assessments from the canton of Vaud show that the first salon, run as a sole proprietorship, declared an annual income of just under 30,000 francs for its owner. The second, a limited liability company, declared an annual loss of 40,000 francs. RTS reviewed assessments for other barbershops in the canton and found similarly low declared incomes or losses, despite few bankruptcies.

Laurent Crevoisier of the Syna union in Jura said some salons might make up for a lack of customers by exploiting employees. Checks by the joint employer-union commission are rare, he said. Crevoisier reported that 91 percent of inspections found violations of the collective labour agreement.

Switzerland’s Federal Police has warned for years that barbershops could be infiltrated by criminal organisations. Police spokesperson Mélanie Lourenço said the number of shops continues to rise and that there is strong reason to fear some could serve as fronts for illegal activities linked to organised crime.

In a separate case reported by RTS, two Lausanne and Geneva branches of the W* barbershop chain are under investigation for suspected money laundering. Police seized 156,680 euros and 250,260 francs from a car at Geneva customs in February 2021 and concluded that some of the money came from drug trafficking.

Court documents allege that W* Barbershop was operated solely to launder drug proceeds, give the money the appearance of a legal origin and deposit it in Swiss bank accounts. The accused deny the allegations and are presumed innocent. They face several years in prison if convicted, and the trial is expected before the end of the year.