We analysed the data from over 900 hospitality venues in the UK, included in the Propel Turnover & Profit April 2024 Blue Book, to investigate impacts the inclusion of competitive socialising had on their profits. The data suggests that many businesses across various industries can benefit from incorporating competitive socializing in their venue.
In this article, we'll discuss the major financial gains revealed from the profit/loss data as well as six-year turnover records of businesses that have implemented competitive socialising across the UK. Here's everything you need to know:
What is competitive socialising?
Competitive socialising (CS) is all about creating an immersive experience that brings people together. Instead of going to a bar to order a drink and watch TV, people are encouraged to socialise - and have fun while doing it.
There are many ways to incorporate competitive socialising. Whether it's mini golf, karaoke competitions, trivia, or a game night. These interactive experiences can help boost sales and brand visibility.
How competitive socialising benefits businesses
This report looks at the six-year performance of competitive socializing businesses in general. Our research suggests that establishments incorporating some form of competitive socialising experienced growth before and after the COVID-19 pandemic. From 2022 to 2023, the industry saw rapid growth, moving from £260 million to £350.5 million in just one year. We expect this growth to continue to trend upward as more businesses find innovative ways to incorporate CS activities.
Four industries that can benefit
Our report looked at four different business sectors. Each sector has its own opportunities and challenges for adding CS activities. All of the businesses across the various industries used CS activities differently.
Here's how the four industries compare.
Bars and Pubs
Bars and pubs provide the perfect atmosphere for competitive socialising. People go to their favorite bars to relax and socialise with friends, family, or coworkers. They want to have a good time and socialise.
Our research suggests that bars and pubs with competitive socializing had more profit than establishments without. In fact, bars and pubs that implement these activities saw an average profit of £5,400,000 compared to £230,000 for those that do not.
Bars and pubs can benefit from various competitive socialising activities. However, CS activities that don't require as much space are better suited for the atmosphere. For example, most bars and pubs choose to go with karaoke or trivia rather than adding a bowling alley.
Restaurants
The business dynamic for restaurants can vary. Some businesses have a sit-down atmosphere, while others turn into bars at night.
It's important to note that CS activities may not be ideal for all restaurants. When exploring the different activities you can include, it's best to consider what vibe and atmosphere you're trying to achieve. For example, adding dart boards might be distracting for the guests. So private karaoke rooms would be a more suitable option.
For some businesses, CS activities make sense. They ignite conversations and bring people together. However, CS activities may not be ideal if you want to create a more intimate setting and stick to a traditional sit-down experience. Our data suggests that businesses with CS activities experience a -£3,478,000 loss compared to -£1,375,000 for those without.
If you own a restaurant, take this data with a grain of salt. While this data suggests that CS activities don't have a positive impact on restaurants, this may be due to the small sample size or might be more about the type of competitive socialising involved. It's always best to consider the unique dynamic of your restaurant and explore ideas based on your audience.
Hotels
Research suggests that competitive socialising can also help improve the hotel customer experience. Competitive socialising activities are a great way to entertain guests and make new friends while on vacation. Our research suggests that hotels and resorts that implement CS activities see a significant boost in revenue. In fact, hotels with CS activities have an average profit of £12,275,000 compared to £2,074,000 for those without.
With CS activities, hotels are about to improve the guest experience and keep customers coming back for more. This helps boost occupancy rates and keeps customers on the property for longer.
Amusement Parks
Amusement and holiday parks bring people together to enjoy some good old-fashioned fun. Our study suggests that amusement parks that incorporated CS activities outperformed parks that did not. In fact, these establishments saw an average profit of £14,933,000 compared to only £5,652,000. This significant boost in revenue is a result of being able to do social and recreational events that align with the customer's interests.
Competitive Socialising Case Studies
Don’t just take it from us - many bars, restaurants, and resorts use competitive socializing to their advantage. When implemented correctly, these activities are an invaluable tool that can help boost retention and revenue.
Here’s how five establishments use competitive socialising to their advantage:
Bars and Pubs: The Kenton Pub
The Kenton Pub is an English Pub located in London. The pub is known for its traditional English atmosphere with a Scandinavian vibe. Outside of the great drinks and food - customers can look forward to weekly pub quizzes, music, and private karaoke rooms. The different activities have helped the establishment retain its current customers. In fact, over 80% of the private karaoke room bookings come from people who are already at the pub. This gives customers a reason to stay longer and to enjoy a few more drinks. The karaoke room keeps the energy at the bar high and ensures that customers are entertained while they enjoy a few drinks.
Learn more about how The Kenton Pub implemented karaoke here.
Restaurants: Gangchu Chicken and Beer
Gangchu Chicken and Beer is located in Tampa, Florida. They are known for serving up some of the best Korean dishes in the area. Outside of beer and chicken, they also have their own private karaoke rooms. Adding karaoke rooms to the establishment has made it easier for the restaurant to market happy hour deals and implement more weeknight events. After customers enjoy their meal, they can enjoy karaoke with their friends and family. On other weekdays, they host trivia nights and other game-centric activities.
The addition of competitive socializing activities has helped them create a more vibrant atmosphere. People come ready to enjoy food and top-of-the-line drinks but stay for the experience.
Learn more about how Gangchu implemented karaoke here.
Hotels: Steam Hotel
Steam Hotel is a hip and trendy hotel located in Sweden. They recently added two karaoke rooms to help boost engagement and cater to a larger audience. Karaoke rooms are a great competitive socializing activity hotels can consider incorporating to add an additional line of revenue while improving the customer experience for their guests. Since installing the karaoke rooms, they see an average of 250 hours of karaoke sessions every month.
The added karaoke rooms helped improve the customer experience and gave their hotel guests a place to relax and unwind with friends and family. The hotel has also started offering karaoke time slots for non-guests. This has helped them expand their reach and boost revenue in new ways they didn't see possible.
Learn how karaoke can increase onsite guest spend in your hotel here.
Parks: Blackpool Pleasure Beach
Blackpool Pleasure Beach is an amusement park located in Blackpool, England. The establishment recently added adventure golf to extend its reach and appeal to a larger audience. This competitive socializing activity allows them to expand their offering while providing their customers more ways to play.
After customers enjoy a few rides, they can slow things down with a few rounds of mini golf. The mini golf ignites their competitive spirit and keeps customers engaged throughout the day. This is a great way to increase the amount of time customers spend at your establishment and boost revenue.
Sports Bar: O'Learys
O'Learys is a well-known sports bar with over 80+ locations in Sweden, Finland, Norway, and Iceland. To create the friendly atmosphere locals and tourists have grown to love, the establishment combines music, karaoke nights, and other CS activities. The infusion of karaoke has turned O'Learys into the go-to spot for weekly karaoke nights.
O'Learys uses Singa for Business software to enhance its karaoke offering. Singa offers a user-friendly interface and an always-growing library of karaoke songs. With the platform, all of their locations get access to karaoke and built-in features. Adding karaoke rooms to O'Learys ensures that customers are entertained during their time at O'Learys. The more engaged their customers are, the more likely they are to continue buying drinks and snacks. This is a great way to boost revenue and customer lifetime value.
Learn more about how O'learys implemented karaoke here.
Create a competitive socialising environment
Ready to take your bar or pub to the next level? Searching for an interactive way to attract new customers and boost business revenue? Singa has you covered. Singa Business is a full-fledged karaoke app. Our platform is user-friendly and features an always-growing library of karaoke songs.
Whether you want to host weekday karaoke competitions or turn your restaurant into a karaoke bar at night. Our platform has all the features to create a competitive socialising environment.
Considering private karaoke rooms or hosting karaoke nights at your establishment? Check out our karaoke profitability study to learn more about the return on investment karaoke can provide. Or reach out to us at Singa Business.
