KARAOKE BUSINESS MODEL

THE POPULARITY OF KARAOKE IS ON THE RISE!

The karaoke business has continued to grow rapidly in recent years in a variety of ways, in pubs, clubs, restaurants and more recently in private karaoke rooms. It is forecast to triple in growth in the next few years.

The Global Karaoke Market will reach USD 5,733.77 million by 2024. (See link: Karaoke Market Research Report)

The 2020 COVID pandemic has created a focus on private karaoke rooms that are used by exclusive groups of people. The rooms have limited capacity and are booked hourly, they can therefore be controlled in ways that keep guests safe. Karaoke rooms can be cleaned regularly after each hourly session and guests can be easily registered and contacted.

WHY ARE PRIVATE KARAOKE ROOMS BECOMING SO POPULAR?

Private karaoke

In Asia, private karaoke rooms have been the most popular type of karaoke venue for decades. These rooms are usually small or medium sized and of unique design and comfort, that create an intimate private experience for small groups of people, and come complete with self-operating karaoke systems. The rooms are rented on an hourly basis.

These type of venues are dedicated businesses, some with multiple floors providing a variety of amenities including food and drink services, merchandising etc. An extreme example of this type of venue is Joysound in Japan who have more than 2000 private karaoke rooms in Tokyo alone!  However, hotels, bars, cruise ships etc also offer private karaoke rooms. These rooms are being seen in more and more places.

Examples

The growing trend of private karaoke room venues that have been successfully established in Europe are KaraokeBox and Lucky Voice in the U.K.  BAM karaoke in France and Spain and Duke of Tokyo in Holland.

Joysound have more than 2000 private karaoke rooms in Tokyo alone!

A venue of Joysound Tokyo

joysound outside room center

Most rooms are pre-booked

room booked online

Upsell food & drinks

room food and drink service

Self-supporting karaoke rooms

room 407

Trendy Private Karaoke Rooms are here to stay!

Private karaoke rooms are becoming ever more popular throughout Europe. The demand for a safe and exclusive environment in venues is growing, as customers seek more social and personal experiences.

The focus of SUNVIG is to meet these demands by offering attractive solutions.

example room business

1. Private karaoke rooms - The business model

Private karaoke rooms are a unique way to attract new customers. Perfect for small groups of people to enjoy an exclusive experience in the comfort of their own room.

5 STEPS TO SUCCESS

  1. Private rooms charge each customer an hourly fee.
  2. Private karaoke rooms have varying capacities with rooms for groups of 4-6, 6-12 and 12-15 being the most popular.
  3. Drink sales will increase with the possibility to up-sell to bottle service, food and merchandising.
  4. A private karaoke room is self-operating and does not require staff supervision, just a standard security camera.
  5. Private karaoke rooms are hygienic, safe, easily managed and regulated. In COVID times, guests can be easily registered and traced through the required booking system.

 

Hourly charges for rooms

Most private karaoke rooms charge between €12-€20 per person, per hour. Use our calculator below to get an idea of potential revenues.

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Average one time Investment

Average for turn-key design, decoration, technical installation and karaoke system.

monthly
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Average Monthly Income Room

Based on 16 hours weekly. (Without upsell)

upsell
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Average Monthly Income Upsell

Based on 16 hours weekly. (Drinks only)

returning customers
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Returning Guests

Singing is a proven feel good experience. Happy customers are returning customers!

Average revenue model of a private karaoke room

2. Suitable venues for private karaoke room

How to profit from a private karaoke room?

Private karaoke rooms will function in many types of venues. Contact SUNVIG and our consultants will advise on a business and revenue model for your venue.

Restaurant

Hospitality

restaurant rotterdam europe

The attraction and experience a private karaoke room offers will enhance a restaurants business offering, especially for pre dinner/post dinner times, and for intimate private parties.

Bar & Club

Hospitality

club bar

Private karaoke rooms in bars and clubs are becoming more popular. They offers more variety to the bar and club experience. Empty spaces such as smoking rooms are ideal to turn into a private karaoke rooms.

FEC’s

Leisure

family entertainment business

Karaoke is becoming the popular way to attract more customers in Family Entertainment Centers such as holiday parks, bowling centers, arcade halls, ski centers, cruise liners, etc,

Kids Play Centers

Leisure and Hospitality

kids indoor

In children’s indoor play, activity and trampoline centers, the interactivity of karaoke offers fun and learning for children aged 7-14 years. They can also develop their vocal skills and talents.

The Turn-key Private Karaoke Room Concept

Your customers will love it

SUNVIG_Logo_header

We specialize in developing turn-key Private Karaoke Rooms.

3. BENEFITS OF PRIVATE KARAOKE ROOMS & SUNVIG

booking online

PRE-BOOKING

80% of rooms are pre-booked online in 1 and 2 hour slots.

(A typical venue charges €12-€20 per person, per hour, per room)

self operating

SELF-OPERATING

The SUNVIG karaoke system and software is easy to use and is completely self-operating. No staff required.
up-sell

UPSELL

People that are singing and having fun spend on average more than 40% on food and drinks. Branded merchandise is also attractive to offer.
traget audience

TARGET AUDIENCE

Private karaoke rooms attract the premium target group of 20-40 years.

This group spends the most time and money on party and social activities such as bachelor, sports and student parties.

karaoke is paying

KARAOKE IS PROFITABLE

The private karaoke room concept gives the best return on square meters.
happy feeling

THE HAPPY FACTOR

Singing releases endorphins, the brains’ “feel good” chemicals that creates the best feelings and experiences. Happy customers are returning customers!

Free Consultation

Contact us.