Karaoke has evolved into a worldwide phenomenon and form of entertainment. It is part of the larger social entertainment concept, which revolves around enjoying a good time with family, friends, or colleagues, incorporating interactive or competitive elements. But why has karaoke become increasingly popular among both customers and businesses?
Here are 7 compelling reasons why karaoke can be a lucrative addition to your business.
1. Increase customer spend time and consumption
Karaoke provides an exciting and interactive form of entertainment that encourages customers to stay longer at your venue and enjoy the lively ambiance. As karaoke keeps your patrons entertained for hours, it substantially increases sales in beverages and food, thereby enhancing overall profitability.
In fact, karaoke has proven to increase the average spend on food and beverages by approximately 35%, proven by a study made together with a Finnish University. Download the study here.
2. Create repeat business and loyal customers
Once patrons have experienced the joy of singing their favorite songs with friends in an enjoyable environment, they are likely to choose your establishment for future gatherings and celebrations. This loyal customer base contributes to steady revenue growth and establishes your venue as a go-to destination in the local community.
One of the real-life examples is Sing Sing, a trendy karaoke box venue in Gothenburg. It is a Japanese-style karaoke restaurant with both karaoke rooms and bar karaoke that has succeeded in making the venue a true experience and definitely a go-to place for karaoke, both among tourists and locals.
A great way to make your venue the top-of-mind place for your patrons is to host occasional themed parties. There are countless options, with Halloween being a prime example. During this time of the year, people are on the hunt for the perfect venue to enjoy a thrilling night out while showcasing their creative costumes. These special occasions provide an excellent opportunity for people to come together and celebrate, and when you combine them with one of the most beloved forms of entertainment – karaoke – it's a recipe for the perfect night!
3. Attract diverse audiences
Karaoke’s appeal is universal, transcending age groups and cultural backgrounds. By incorporating karaoke into your establishment, you're not only broadening your customer base but also tapping into a diverse range of tastes and preferences. Singa has a wide song catalog that covers over 30 languages, ensuring that patrons find their favorite songs when out and about.
Karaoke can also help to bring in customers during typically slow periods, such as beginning of the week or early evenings. Whether it's self-service karaoke in an open setting or reservable karaoke room, karaoke is making the most of off-peak nights. To draw in more customers, consider hosting themed nights or karaoke nights for students on a monthly or weekly basis. When it comes to the all time party people, students, think about customizing your pricing with them in mind. For example, you can provide discounts for those presenting a valid student ID.
4. Enjoy the versatility of karaoke
While live stage karaoke is the classic image that comes to mind for many when they think of karaoke, the world of karaoke has evolved to offer various alternative options. Let's explore them next.
Choose the best karaoke concept for your business
Karaoke comes in various concepts, including self-service run by customers, staff-run live stage karaoke, KJs, karaoke rooms, and karaoke events, allowing you to select the option that aligns best with your business and objectives. The scalability of karaoke makes it convenient to begin with a single room or perhaps a self-service karaoke corner, allowing you to test out the waters before expanding the operation further.
Self-service karaoke
Doing more with less is a mantra that, despite its simplicity, is often difficult to put into practice. But not always. Self-service karaoke is one of the easiest and most resource-efficient ways to provide entertainment, as it is:
- Easy to use for customers, song search and adding them to queue happens through an intuitive discovery station
- The most cost-effective form of karaoke, everything happens with minimal staff involvement
- An ideal way to start karaoke and test its fit for your business
- Lowers the barrier for people to step in and sing
Live stage karaoke
Live stage (or open mic) karaoke accommodates various preferences and is adaptable to different types of venues, making it a versatile choice for entertainment. This kind of karaoke can be hosted either by staff or a Karaoke Jockey (KJ).
- Live stage is popular among so-called traditional karaoke enthusiasts, offering singers a moment in the spotlight
- Creates a lively atmosphere that encourages more people to join in the singing
- Bar staff can potentially host karaoke, for example on quieter nights, reducing the need for additional personnel
Karaoke hosted by KJ
KJ-hosted karaoke is a well-loved concept where a skilled host takes charge of running karaoke, whether it's at a dedicated karaoke party or a live stage event within a venue. Karaoke Jockey can be a great booster for karaoke as:
- KJ adds professionalism, entertaining value, and interactivity, thus creating an engaging and lively atmosphere
- KJ takes care of managing the queue, ensuring a seamless and enjoyable singing experience for singers and the audience alike
Karaoke rooms
A karaoke room is a dedicated space within a venue that customers can rent for private karaoke sessions. These rooms provide an intimate setting where groups of friends, family, or even coworkers can sing their favorite songs and have fun. Karaoke rooms originated in Asia and have become popular worldwide as an intimate and fun alternative or complimentary to traditional stage-based karaoke, since karaoke rooms:
- Provide predictable income through bookings as well as food and beverage orders
- Complement other types of entertainment activities and allows for diverse theme options
- Offer a unique and intimate experience for customers, especially groups, leading to increased booking fees as well as food and beverage sales
Based on our knowledge, karaoke room revenue is typically divided as follows: 50%–60% from beverage sales, 30%–40% from karaoke room booking charges, 10%–15% from food sales. On average, a single karaoke room generates approximately $2,500 in weekly revenue. To dive deeper into the profit potential of karaoke rooms, check the karaoke room profit calculator.
Karaoke events
When we talk about karaoke events, the talk is on in-door karaoke parties and outdoor karaoke. Karaoke parties can be organized either by a third-party company, allowing offices and other groups to outsource the event, or by yourself.
In recent years, outdoor karaoke has gained popularity, providing a fresh take on the traditional indoor karaoke experience. These events are especially popular during the summer months, bringing people together in parks, bar terraces, and other outdoor settings. Nevertheless, if you intend to organize such an event, it's wise to reach out to local authorities to ascertain whether special permissions are necessary for this al fresco entertainment.
Read more about how to organize an outdoor karaoke event.
Combine karaoke with other entertainment activities
The versatility of karaoke also allows it to effortlessly complement a wide range of entertainment offerings, like darts, shuffle boards, arcade games, pub quizzes, and even movie theatres, mini golf or bowling.
For instance, a great bowling meets karaoke example is Bloomsbury Bowling Lanes in London successfully offers bowling, karaoke rooms and quality American food.
”At Bloomsbury Lanes we have three main focuses - one of which is our karaoke experience. Being in the heart of London, we are at the apex of experience and activity days and so any activities we offer within the venue will have to compete with the best in the city.” – Bloomsbury Bowling Lanes
Read the whole case study here.
As people venture out for entertainment, they increasingly seek enjoyable experiences beyond alcohol, as its prominence in the nightlife is diminishing. Karaoke and other entertainment options offer businesses a reliable means of ensuring that evenings and days remain filled with excitement and enjoyment.
5. Seamlessly combine entertainment and advertising
Quite a few forms of entertainment are able to combine both entertaining customers and showing advertisements in an equally seamless way. By integrating digital signage into the karaoke experience, you can effortlessly display ads, promotions, and event information on screens between karaoke sessions and songs. This ensures that customers get the scoop on your offers right when they're about to make their buying choices (goes by the term Point of Sale Marketing), whether it's their next drink or the delicious meal they'll savor.
With Singa Ad Manager, you can schedule your promotional ads for different periods and days, as well as the duration of them. Here’s a video tutorial on how the Ad Manager looks like and how to use it.
And if you’re wondering how to make the most of on-premise screen advertisements, here are 5 practical digital signage tips on how to nail digital signage. It’s time to make every screen count.
6. Become a trendsetter
As the karaoke room business remains relatively untapped in many countries, being a pioneer in this field offers several advantages for a business. This includes the first-mover advantage (establishing authority and building a loyal customer base), increased visibility (initiating something new often generates buzz and media interest), and differentiation (leading to a competitive edge).
An excellent example of trendsetting is Moyagi, taking inspiration from Tokyo's vibrant karaoke scene. Moyagi stands as one of Sweden's premier karaoke room venues, successfully combining cuisine, beverages, and fun in the form of karaoke. The result is a seamless experience, where every detail authentically embodies the spirit of an authentic Japanese karaoke room venue.
7. Capitalize on the rise of the experience economy
This point ties everything together by returning to customer loyalty. Customers who have formed positive memories from past experiences are more likely to return for future visits. But why are experiences so vital for businesses to understand?
"Commodities are fungible, goods tangible, services intangible, and experiences memorable." – Harvard Business Review
What this means is that experiences come to life within the individual customer. Businesses play a crucial role in crafting and organizing these experiences by influencing how customers feel, what sensations they have, and how they participate in activities, with the goal of leaving customers with lasting memories.
In the current era where individuals increasingly prioritize spending money on experiences and businesses must actively design and provide them to stay competitive, there's no better moment than now to explore the idea of establishing karaoke rooms, a setting that's perfect for crafting unforgettable memories.
One of the characteristics of a compelling experience is theming it. Karaoke rooms can be seamlessly tailored to suit particular themes. Whether it's Halloween gatherings or festive New Year's karaoke, you have the flexibility to adjust room aesthetics, lighting, as well as promotional materials and messaging. This customization allows for a more immersive and memorable experience for customers.
And here you have it – 7 compelling reasons why karaoke simply is worth it. In summary, karaoke's popularity arises from its ability to provide engaging, social, and diverse experiences. If you want to have more inspiration and information on how karaoke can be done successfully, check out this case study on Yokocho with remarkable success, with over 20,000 songs played monthly, equating to more than 1,300 hours of singing.
No matter your concept or vision for incorporating karaoke at your establishment, Singa Business offers the flexibility and adaptability needed. If you have any inquiries about how karaoke can elevate your business, don’t hesitate to reach out to us.