Private karaoke rooms (also known as karaoke boxes, karaoke booths and KTV among many) are a money making machine for your venue. They are a great way to entertain your customers whilst boosting your revenue. In this blog post Singa highlight 5 great benefits of the private karaoke room business model and how they could help your venue.
1. Private karaoke rooms mean predictable revenue
Our customers have said it repeatedly that the biggest advantage of the private karaoke room business is that it allows them to forecast their revenues, and we cannot agree more! Karaoke rooms are almost always pre-booked in advance for a one or two-hour slot so you'll know exactly how much you are making in the week or month ahead.
A typical karaoke room is charged from £30 to £100 per hour (or $40-$130) depending on how many people it can fit and the day of the week. Let's take a look at a rough estimation as an example: you are renting your room at £40 per hour ($50) and your karaoke room is booked every Friday and Saturday evening for 4 hours, and one 3-hour booking each week for a weekday evening. So 11 hours per week, far from full capacity. This means over £1700 ($1800) a month, excluding the food and beverages you sell.
To encourage customer spending and further boost the accuracy of your revenue forecast, you can add compliments to the pre-booking process like F&B packages and drink vouchers, etc. Doing so also helps reduce queuing at your bar, which improves the whole night-out experience.
2. Private karaoke rooms are trendy and here to stay!
Karaoke originates from Asia and has spread all across the western world. Private karaoke rooms have become insanely popular in recent years alongside traditional open stage karaoke, and if the market response is anything to go by, private karaoke rooms are most certainly here to stay.
There are hundreds of karaoke booth venues in the UK alone and we spoke to Hogarth's in Stafford to find out how their private karaoke room has increased turnover for them - watch the video here to find out how they kept up with the demand of a three week waiting list!
3. Private karaoke rooms are loved by customers
Karaoke rooms are a great place for friends to come together! Many people who would not traditionally go to a bar or open night karaoke are ready and willing to jump in a room and sing with friends. This can attract private parties and groups who will often come back.
To go a step further, with modern karaoke software like Singa, customers can browse the karaoke categories of up to 80,000 tracks and add songs directly to the song queue from their mobile phone. This cuts down people fighting over song books and lets everyone get straight to the singing.
4. Private karaoke rooms are easy for your staff
Once the booking has been made and your customers are in the room, with Singa, you don't need to do anymore. The system is so easy to use, it's designed to work like a modern day streaming service like Spotify or Netflix and requires no training or instructions.
We have over 800,000 people using our Singa karaoke consumer app at home who are familiar with Singa's interface and actively search for their nearest karaoke venues. So, once you are in the system, you will be exposed to that audience. Check out that modern karaoke technology!
5. You'll attract more customers with private karaoke rooms
Offering private karaoke rooms is a great way to attract new customers. Private rooms are perfect for those that love singing but are shy to get on stage in front of a whole venue, and also great for those that want their very own stage and exclusive experience. Private karaoke rooms make singing possible for everyone!
Karaoke is something you can add to your venue which will attract customers
I dare to say, that partly because of the Corona it [private karaoke rooms] has been such a success - Marcus Smith, JJL Invest AB / O'Learys Linköping
If you would like to have a karaoke room in your venue, check out this blog for answers to the most frequently asked questions about karaoke rooms or this blog for more information on getting started.