Convert your axe throwing lounge into high‑profit karaoke rooms

Axe throwing surged from a niche novelty into a booming experiential trend, filling warehouses with the thrill of competition. If you own one of these venues, you may have noticed a slowdown and fewer repeat bookings. Industry insiders report a 10% decline in customer numbers and corporate events over the past 2 years.

Meanwhile, demand for social entertainment experiences is booming, particularly among Gen Z audiences who are fueling the rise of private karaoke rooms.

Long-term success comes from repeatable experiences, not one-off novelties. By transforming a high-maintenance, one-time activity into an immersive social experience, you’re setting your venue up for sustained profitability over the next decade.

If you’re running an axe throwing venue that’s starting to feel the strain of slowing returns, pivoting to private karaoke rooms could be your smartest move yet.

Is it time to drop the hatchet?

The indoor axe throwing industry enjoyed rapid growth early on: for instance, in the United States, a 317% increase in sales from 2018 to 2019. Yet the same sources show the growth rate has slowed: the U.S. axe throwing market was valued at roughly USD 163 million as of 2023 and growing at ~1.9% annually.

'Venue operators report real-world signs of fatigue: on Reddit, one axe throwing venue owner described a sharp drop in business despite being in a prime location:

“After 5 years, my business has declined to under 10 groups per week… virtually all the other axe throwing businesses in my region have closed down due to the same lack of business that I’m experiencing.”

While novelty initially drove traffic, the format is hard to refresh. Static lanes + similar experience = less repeat business momentum unless you continuously invest in diversification. A recent analysis of the industry argues the threat of substitutes (other activities, digital leisure) is significant.

The core issue lies in the nature of the experience itself. Axe throwing suffers from three critical business inhibitors that make it difficult to sustain growth:

1. The 'one-and-done' novelty factor

For most customers, axe throwing is a bucket-list activity. Once they’ve successfully stuck an ax — and posted the photo on social media — the desire for a return visit quickly diminishes. As one industry commentator noted, a common feeling among initial customers is, "It is fun to do exactly one time".

This high churn rate means venues must constantly acquire new customers, leading to skyrocketing marketing costs and making the business model unsustainable over time. While some successful venues achieve repeat customer rates of around 17% through strong coaching, most venues struggle to maintain these numbers while also bringing in new customers consistently.

2. High operational complexity and cost

Setting up and running an axe-throwing venue is resource-intensive. The materials themselves are costly and require frequent replacement. Targets, backboards, and even the axes themselves are subject to significant wear and tear, necessitating continuous replacements simply to maintain the existing experience.

A breakdown of the setup costs might look like this:

• Insurance liability coverage: $10,000 to $25,000
• Setting up the facility: $50,000 to $150,000
• Throwing axes: $20 up to $150 per axe

Furthermore, the activity requires constant supervision and a high level of staff training.

Sure, it’s possible to set up an axe throwing venue at a lower cost, but as some industry commentators note, the "cheap dog kennel looking axe place" model has driven customers away. Successful venues report making significant investments to create a premium, high-quality space.

3. It lacks broad social appeal

While throwing an axe is fun for a small group, it’s not an inherently social activity in the way most people define a night out. It often requires significant waiting time, high focus, and a dedicated coach, making spontaneous, large-group interaction difficult. Moreover, it appeals to a smaller segment of the population, limiting the potential pool of participants and increasing the likelihood that the activity will quickly decline in interest.

In short: while axe throwing remains viable for some markets, it may be reaching a saturation or plateau phase — especially if you rely solely on throwing lanes and haven’t diversified your offering.

From axes to anthems: escaping the plateau

The karaoke industry is experiencing steady global growth, and Western markets are emerging as key expansion areas. The market for private karaoke rooms is growing fast: research shows the global private karaoke room market was around USD 3.1 billion in 2024 and projected to reach USD 6.8 billion by 2033 (Compound Annual Growth Rate ~8.9%). North America is emerging as the fastest-growing region in the private karaoke room market, with a projected CAGR of 11.2% during 2025-2033. This growth is significantly outpacing the axe throwing industry.

Another study found that venues that added karaoke rooms experienced an average 12.23% increase in return on assets compared to those without.

The private room karaoke model provides multiple advantages over axe throwing venues:

• Lower set-up costs.
• Higher revenue per square foot potential if you increase number of rooms (for example converting one large space into multiple smaller private rooms).
• Faster bookings, longer dwell times, more upsell potential (drinks, snacks, extended hours).
• Broader audience appeal. Group segments, date nights, corporate bookings, social-media moments — karaoke checks a lot of boxes for shareable, repeatable experiences.
• Lower refresh cost and lower dependency on new props/themes compared to upgrading throwing lanes or adding lanes.

The revenue potential is impressive. A single karaoke room can generate $1,100 to $4,000 USD per week, depending on pricing and occupancy. For example, Spinners Maroochydore in Queensland, Australia operates their karaoke room at $50 AUD per hour, and it's become a top-performing feature – especially when paired with food and drink service. Karaoke encourages guests to linger and spend more.

With relatively little competition and rising popularity – especially among Gen Z and millennials, who value social, shareable experiences – karaoke represents a smart pivot for entertainment venues looking to scale.

While some competitive social activities fade, karaoke endures, evolving from a simple bar activity into a global, multi-billion-dollar entertainment market. So if you’re seeing the axe throwing offering flatten out, a conversion or hybrid model with karaoke could open new revenue streams.

Tapping into the Gen Z market

Gen Z is actively shaping the future of entertainment. This generation prioritizes experiences over possessions, craves authentic social interactions, and shares everything – from karaoke nights to casual hangouts – on platforms like TikTok and Instagram. Private karaoke rooms deliver exactly what they're looking for: a fun, customizable, and highly shareable experience they can enjoy with friends.

By offering private spaces, on-demand song access, and vibey, photogenic interiors, your venue becomes instantly appealing to this audience. And the best part? Gen Z guests don't just come to sing – they stay longer, bring their friends, and post about it, turning your space into its own word-of-mouth marketing engine.

Operational advantages of karaoke rooms

Transitioning from axe throwing to private karaoke rooms can transform your venue into a high-performing, all-week destination. Here’s how this switch can improve profitability, attract new audiences, and reduce operational strain.

1. Lower capital expenditure and reduced maintenance

The typical axe-throwing lane requires costly safety fencing, specialized lighting, and, most notably, the constant replacement of expensive wood targets.

In contrast, converting to a karaoke room means:

• Low CapEx refresh cycles: Once the initial room build-out (soundproofing and seating) is complete, refreshing the offering is as simple as updating playlists or upgrading software.
• Minimal equipment wear: The primary equipment — microphones, screens, and sound systems — have a long lifespan and are easy to maintain compared to impact-absorbing wooden boards.

2. Corporate market and crucial weekday revenue

Private room karaoke is ideally suited for corporate events and team-building. Companies look for interactive activities that break down barriers and create memorable shared moments. Private room rentals offer a vital source of weekday income.

3. Extended packages and upsells

Karaoke rooms are designed to keep guests celebrating longer, allowing you to boost average spend per guest and charge for room time, adding steady revenue. This allows for:

• Extended room packages: Multi-hour or discounted long-stay bookings.
• Themed bundles: Special food and beverage packages.

4. Maximizing food and beverage sales

One of the biggest revenue differences between axe throwing and karaoke lies in food and beverage (F&B) potential. Safety restrictions in axe throwing environments often limit alcohol and dining options.

Private-room karaoke, on the other hand, is a relaxed, seated, social experience that naturally pairs with food and drink service. Studies show that customer spending can increase by up to 42% during karaoke events, while F&B sales contribute to a 34% average revenue boost per session.

5. Significantly higher repeatability

The long-term success of experiential venues depends on repeat visits, not just novelty. Karaoke is inherently repeatable — each session offers a new mix of people, songs, and moods. Roughly half of guests return after their first visit to a private karaoke room, booking for birthdays, bachelor and bachelorette parties, after-work events, or casual nights out. This repeatability builds a loyal customer base and predictable revenue flow.

6. Multi-generational and cross-demographic appeal

Karaoke appeals across all age groups, attracting not just the highly sought-after Gen Z consumer but also families, friend groups, and tourists.

The 30-day conversion timeline

Yes, it can be done in a month. Here’s how to convert your space efficiently, week by week:

Week 1: Planning and assessment

• Evaluate your floor plan: How many karaoke rooms can your current layout accommodate?
• If you have existing lanes, you’ve already got built-in divisions, seating zones, and maybe lighting/sound infrastructure.
• Plan for a mix of room sizes. Larger rooms can host groups and events, while smaller ones serve couples and friends.
• Plan soundproofing and AV layout: walls/doors need to contain sound; allocate budget for acoustic panels, doors, insulation.

Week 2: Technical setup

Purchase and install core AV equipment:

• Flat screen or wall-mounted display
• iPad or tablet with fully licensed karaoke software (like Singa Box Mode)
• Speakers and a mixer
• Microphones
• HDMI cables, power splitters

Most systems today are plug-and-play, requiring no major rewiring. Ceiling or wall-mounted speakers reduce damage risk and save floor space.

Week 3: Soundproofing and design

• Seal doors and windows to contain sound. If rooms leak sound, you’ll struggle with user experience.
• Use acoustic panels, rugs, and soft furniture to reduce echo.

Repurpose or replace axe throwing décor with karaoke-friendly aesthetics:

• Themed décor = instant Instagram backdrop
• Repurpose old targets, neon signs, or wood accents into music-themed décor that sparks conversation.
• LED strips and mood lighting help personalize the experience for each group
• Remove any remaining axe throwing equipment and safety barriers that aren't needed

Week 4: Testing and launch

• Run trial sessions to stress-test the rooms
• Train staff on session setup and customer support – much simpler than safety briefings and scoring for axe throwing
• Finalize your online booking system and marketing campaigns
• Update your website and social media to reflect your new offering
• Monitor metrics: room occupancy, session length, extra spend (food/drink), repeat bookings. Compare these to your previous axle-throwing lanes for benchmarking.

Hybrid model: axe throwing + karaoke

You don’t necessarily have to abandon your throwing lanes entirely. A hybrid model could work best for your venue:

• Retain the lanes as a niche offering (corporate team building, leagues, events) while front-facing the karaoke rooms for high-volume group business.
• Use the karaoke rooms for overflow, peak times (evenings/weekends), where you have multiple bookings side-by-side.
• Cross-promote: e.g., offer “Axe + Sing” packages: throw an axe for 45 mins, then move to a private karaoke room for an hour — increasing time spent, food/drink upsell.
• Use off-peak hours for throwing (e.g., weekday afternoons) and prime hours for karaoke (weekend evenings) to optimise revenue per square meter.

Ready to launch? Get the free 30-day guide

If you’re serious about transforming your axe throwing venue into a sustainable, future-ready business, start with the 30-Day Karaoke Room Launch Guide.

This free resource walks you through every step of the process, including:

• Space planning
• Equipment and software selection
• Soundproofing and design tips
• Pricing and marketing strategies

Stop aiming for the target. Start hitting the right note.

🎤 Your karaoke conversion starts here → Download the Guide

Power it all with Singa Box Mode

Singa Box Mode is the easiest way to run professional karaoke experiences that impress – and convert. An intelligent cloud-based karaoke tool with an intuitive interface and a massive song library, it’s tailored for private karaoke room venues with features like timer, device & session management.

Singa Karaoke Box Mode comes with:

• A colossal, actively updating karaoke song catalog
• Karaoke Room Session management and timer
• Karaoke room user interface & modes
• Background music
• Smart and automated karaoke experience features
• Venue promotion in Singa consumer app
• Co-branding options
• Customer support via chat, email & phone and a dedicated customer success manager to help you with any and all your karaoke needs.

Learn more and get started at singa.com/business.

Throwing axes may be out, but throwing a party is in

The transition from a passing fad to a stable, profitable entertainment model is about shifting the focus from a high-liability physical activity to an inclusive, high-repeat social experience.

The private room karaoke model offers a direct, low-friction solution to these challenges, leveraging your existing real estate to tap into a growing market valued at $6.2 billion.

It’s time to retire the safety briefing and welcome the party. By partnering with a world-class technology provider like Singa, you can quickly convert those former lanes into lucrative karaoke lounges, ensuring your venue continues to hit a bull's-eye on profitability for years to come.