Business Overview

A karaoke bar business provides a location where individuals can sing their favorite songs in front of a sympathetic audience. There are different forms of karaoke bars. Some are “open” bars in which singers perform for all of the occupants of the bar, while others provide small rooms for people to perform in with friends and family. In each case, the bar provides the music and lyrics necessary so the performer can concentrate only on singing.

Who is this business right for?

Above all, this is a business for those who love both music and people. You must be a good “people person” who can make assorted individuals feel comfortable performing, and you must be someone with a thorough knowledge and appreciation of music. Prior experience working in bars that do karaoke is also very helpful.

What happens during a typical day at a karaoke bar?

Some of your daily activities include preparing drinks for customers, signing customers up for karaoke, and loading their chosen songs so that they can perform. Your “downtime” may be spent cleaning plates and glasses, performing maintenance on your equipment, receiving shipments of drinks, and using various accounting software programs to help manage your business.

What is the target market?

While karaoke patrons come in all forms, some of your best customers will be young adults in their early to mid-20's. This is a group that often sees karaoke as a fun form of both socializing with friends and meeting romantic partners, and things like duets offer a chance for such groups (who also have more free time and are more free with their money) to bond.

How does a karaoke bar make money?

At most karaoke bars, your primary income will come from sales of alcohol and possibly a cover charge for entry. Beyond that, the karaoke itself is typically free. The exception is if you offer separate rooms for people to perform in, in which case it is appropriate to charge a separate price for the room rental.

What is the growth potential for a karaoke bar?

The growth potential for such a business is above average; the Bureau of Labor Statistics records that the field of bartending is supposed to grow by ten percent between 2014 and 2024. A karaoke bar is more specialized and may have the potential to draw more customers than a non-karaoke bar.