How to open your own karaoke club. Costs and profits

23.09.2019

There are different ways of leisure that people are interested in. Some, for example, prefer to show their vocal talent in the circle of family or friends. Karaoke is popular at home, because it became possible to buy the necessary equipment. But for more adrenaline, many song and music lovers prefer public places and rush to karaoke places. Their number, of course, is not very large, but the scope of such a small business is partially occupied. In some settlements, karaoke is completely absent. If you like the atmosphere of fun and music, there is a reason to think about such a cozy corner and write your business plan for a karaoke bar.

Before that, it is worth deciding what the specifics of leisure are. Will it be only a music bar or will it provide alcoholic drinks, snacks and hot drinks. To understand how to prepare for planning, we offer our own example in which we present a detailed business plan for a karaoke bar with calculations. Consider what investments the business requires, what documents are needed to launch a karaoke club into operation, and whether the profitability of a highly specialized bar is high.

Summary

To get the desired profit from a karaoke club, you need to open an institution in the “two in one” format - emotional pleasure (karaoke) and the opportunity to drink, eat (a bar with its own kitchen). If we focus only on the stage and equipment, not all visitors will be able to express themselves. A moderate degree and a delicious dinner help to emancipate a person. Therefore, we will open a public catering establishment with karaoke services that satisfies people of different ages and musical tastes with its list of compositions.

The activity will be aimed at serving citizens, it is related both to the catering establishment and to the premises in which conditions for recreation and entertainment will be created.

According to the OKVED classifier, we select the following codes:

No. 56.10.1 "Activities of restaurants and cafes with a full restaurant service (including the sale of alcoholic beverages)".
No. 93 "Activities in the field of recreation and entertainment."

Location of the object: regional center, densely populated area of the city.

Premises: first and ground floors of a residential building. The total area is 150 sq. m. On the 1st floor there will be a guest service area with a karaoke bar and an administrative office (75 sq. m). The ground floor is reserved for the kitchen, warehouses, staff rest room.

Form of ownership of the premises: long-term lease.

Opening hours of the karaoke bar: daily from 18.00 to 06.00.

Number of visitors: 50 people can be in the room at the same time. In the bar hall there will be 8 tables with sofas, which can accommodate 6 people or more.

Service list

Karaoke with a wide range of songs.
Bar operation (wine list, beer, juice, cocktail, tea, coffee, light snacks).
The work of the kitchen for the preparation of hot dishes, salads, desserts to order (varied menu).
Entertaining show with contests and prizes.

Form of activity: LLC (company with limited liability). It is possible to obtain a license for alcohol and tobacco products. Investments in the project will require serious. The personal funds of the founders and the bank loan are used.

Taxation: simplified (income minus expenses).

We draw up documents for the institution

To open a karaoke bar combined with a restaurant, you need to collect the following package of documents:

Permission from the administration and Rospotrebnadzor for the possibility of placing a recreation and entertainment center in a specific place. The premises are selected in a residential building and may have a restriction for entrepreneurs.
Conclusion on the sanitary and fire condition of the areas under the karaoke club.
The act of conformity of the layout to the scheme in the BTI documents.
License to sell alcohol.
Lease agreement with the owner of the premises.
Permission of architecture to place information on the facade of the building.
Design documents for engineering and communication lines.
Contract with utilities (water, electricity, garbage disposal, heating).

The collection of documents must begin immediately after obtaining a certificate of entrepreneurial activity, because this can take several months. Law firms offer services to save a businessman from a headache and avoid mistakes.

Preparatory stage

To understand what investments will be required for the implementation of the project, we note in the business plan the main items of expenditure and amounts. We will enter the costs in the table. For a karaoke bar combined with a restaurant function, you will need redecorating, communications equipment, bar, kitchen, musical equipment.

Investment article	Investment amount, rub.
For premises	–
Issuance of permits	80 thousand
Restaurant design project	120 thousand
Architect services	50 thousand
Estimate for finishing and Construction Materials, services of masters. We pay special attention to the soundproofing of the premises, because the institution is located in a residential building.	750 thousand
Planning of communications, engineering systems. Documents, installation wizard services	350 thousand
Equipment for all rooms	–
Visitor area:
Dining tables	80 thousand
Bar style sofas	120 thousand
Bar counter with shelving, showcases, refrigerators, household appliances(kettle, microwave, coffee maker, cocktail shakers, dishes)	250 thousand
scene with decorations	80 thousand
Musical equipment (professional) with multiple microphones	800 thousand
Music card file in assortment	40 thousand
Interior items (glowing ball, lighting system, decors)	75 thousand
Equipping the kitchen, utility room and staff area	–
Ventilation	25 thousand
Electric stove with oven	160 thousand
Storage system for food warehouse	40 thousand
Refrigeration units	35 thousand
Cutting tables	22 thousand
Kitchenware	150 thousand
Household scales	5 thousand
Household appliances (blender, meat grinder, Dishwasher, kettle, microwave, mixer)	150 thousand
Washing compartment for dishes, products, personnel hands	20 thousand
Furniture, cabinets for staff	45 thousand
Total cost	3 million 447 thousand

Funds will be required for the promotion of a karaoke club. The advertising campaign should be large-scale so that the maximum number of potential customers learn about the opening of such an institution. We will allocate 200 thousand rubles for this procedure. Also, money is needed for rent, if the owner does not give a deferral for the period of preparation of the premises for opening. We will allocate 300 thousand rubles for this article and add to them the amount for the purchase of a minimum set of products for launching a bar and a kitchen - 300 thousand rubles.

While the karaoke bar starts to make a profit, employees will have to pay salaries, pay utility bills, and supply food from their own funds. Let's add 1 million rubles to the total estimate of the business plan. At the initial stage, you need to invest at least 5 million 300 thousand rubles in the business. The amount is solid and feasible, not for all novice businessmen, if there is no own starting capital. Adjustments to the amounts are possible if the cost of equipment, materials, services of workers, specialists is higher or lower than the estimated amounts.

Timeframe for launching an entertainment venue

Coordination with the inspection authorities, the work of finishers, designers, other specialists, the purchase of equipment and the preparation of the institution for opening is a lengthy procedure. It may take several months. But you need to draw up a schedule for all the work so that the opening is not delayed due to the usual disorganization.

Stage name / month	July	August	sept.	oct.	Nov.	dec.
Stage of business registration, search for premises	+
Coordination with inspection departments, collection of documents for the operation of the institution	+	+
Design, design work, budgeting for materials		+	+
Ordering materials, equipment, apparatus, furniture			+	+
Finishing work, communications, electricity, fire alarms				+	+
Installation of furniture, bar counters, stages, equipping the kitchen, utility, administrative premises					+
Recruitment				+	+
Testing the work of the institution					+
Work to promote the institution, promotion in social networks, website development, ordering invitations, holding a promotion dedicated to the opening			+	+	+
Search for suppliers of alcohol, products for the bar and kitchen			+	+	+
opening day						+

If there are no circumstances hindering the process of preparing for the opening, then the karaoke bar should open its doors to the first customers on December 1. This month is relevant for promotion and attraction of the first visitors - corporate New Year's events begin in December. If you offer favorable conditions for collective leisure, there is a chance to “kill two birds with one stone”: make a profit and interest the target audience, which will become one of the links in the advertising campaign through word of mouth.

We complete the staff of the institution

The karaoke bar will be open 12 hours a day, in the evening. Therefore, you need to staff two shifts of personnel who can work two through two. The following positions are required:

To the kitchen:

Cook (2 items).
Assistant cook (2 units).
Warehouse manager (2 units). The function can be performed at first by the administrator, so as not to inflate the staff.
Kitchen worker with cleaning duties - 2 units.

In the guest room and bar:

Bartender (2 units).
Waiter (4 units).
Administrator (2 units).
DJ (2 units).
Weekend host (guest artist).
Security guard (we conclude an agreement with a private security company private security company). 1 person per shift is sufficient.
Wardrobe attendant (2 units)

Perhaps, in the course of the work of the karaoke club, the staff will be supplemented by other employees.

Material remuneration at the initial stage will be issued in the form of a salary. As the karaoke bar gains momentum and clientele, premiums and a bonus system are expected. Tips from visitors are also acceptable.

The initial salary and contributions to the funds are indicated in the table:

position	Quantity	Salary of one employee, rub.	General expenses, rub.
Cook	2	20 thousand	40 thousand
cook assistant	2	15 thousand	30 thousand
Warehouse manager	2	12 thousand	24 thousand
Kitchen staff	2	10 thousand	20 thousand
Bartender	2	18 thousand	36 thousand
Waiter	4	9 thousand	36 thousand
Administrator	2	15 thousand	30 thousand
DJ	2	15 thousand	30 thousand
Host (weekend)	1	8 thousand	8 thousand
Wardrobe attendant	2	7 thousand	14 thousand
Total	21	–	268 thousand
Fund Contributions			81 thousand
General expenses for payroll			349 thousand

The security guard will be paid by his own organization. The bar will pay fees according to the service agreement. It is possible that some duties (wardrobe attendant, warehouse manager) will be transferred to the duties of administrators with a partial increase in salary.

Calculation of payback and profit

To assess the profitability of a karaoke bar business, you need to calculate the average monthly annual income. The calculations in the business plan are indicative, but they can clarify the picture and understand whether the business is profitable or unprofitable.

The work of the bar will be built according to several schemes, which will be applied in turn, in order to find the best option:

Entrance to the karaoke club is paid (150 rubles per person). The price includes a cup of coffee. Payment for the menu according to the tariffs of the restaurant. The order of the composition is paid additionally (100 rubles per one).
Entrance to the karaoke club is free, but to get a seat at a table, you need to make an order at the bar or in the kitchen for a certain amount (at least 500 rubles). The application of songs for karaoke can be free when ordering for a certain amount. For example, for every 1000 rubles - one performance as a gift.
Table rental for the whole evening. Focused on attracting large companies. A table for 4 people can cost a fixed amount of 5 thousand rubles. The price includes soft drinks, light snacks and 3 free performances. IN holidays (New Year, March 8 and others) the cost rises to 10 thousand rubles per table and a special festive menu and additional gift bonuses are offered.
Full rental of the karaoke bar hall for the evening for large corporate parties, weddings, anniversaries. The cost is from 45 thousand rubles per evening. The conditions for the menu and the use of karaoke equipment are negotiated with the customer individually.

In the first month, you can offer discounts of various plans so as not to scare the first visitors with a high price. But for the profitability of the bar, revenue is needed, and it is desirable that the average bill be at the level of 1 thousand rubles per person. At first, it is planned to receive revenue in the region of 30 thousand rubles per evening. By the first year, it is planned to reach an income in the region of 45-60 thousand rubles per evening. Profit per month can vary from 1 million 150 thousand to 1 million 700 thousand rubles.

Now we note the costs of the institution, which must be deducted from the monthly income.

It is possible that additional costs will arise and the net profit will be minimal. But for calculating the payback period, we take the amount of 300 thousand rubles per month. Taking into account the investment amount of 5 million 300 thousand rubles, in 18 months the karaoke club will become self-sufficient. Typically, such institutions begin to work on a net income in 2-2.5 years. So our calculations show that the chosen field of activity is profitable and has a chance of long-term existence if everything is properly organized.

To do this, it is necessary to choose a universal club concept, think over an appropriate menu, and offer visitors favorable conditions for spending comfortable leisure time. Then there will be no end to customers, a permanent audience will appear.

Eventually

Despite the fact that the karaoke bar has a certain service specifics, with a creative approach to business, it is possible to form a certain circle of regular visitors. Some people prefer to replace an ordinary disco or a boring restaurant with a cafe where you can have a delicious dinner and spend energy in a vocal duel with incentive prizes. If your locality does not yet have places for recreation of this format, we advise you to study the situation in detail and, relying on our calculations, draw up your own business project.

Before opening a karaoke bar, you need to decide on the type of this institution. There are two types of karaoke - the Japanese "nari bar", which pays great attention to the privacy of the performance of songs and equipped booths for this purpose, and the usual American-style karaoke bar, which involves public performances.

Both options are similar in terms of investment and organization.

What do you need to open karaoke?

In order to open a karaoke bar, a business plan is simply necessary, as is a market analysis. Since such a scale of the institution implies a relatively low cost of entry and quickly pays off, this is a very profitable project even in the post-crisis period. The main question that torments novice businessmen is how to open a karaoke bar in small town? The answer is extremely simple - it is necessary to completely monitor the town and highlight the main densely populated areas, after which it is already decided in which of these parts it will be profitable and convenient to organize an institution.

To open a karaoke club, it is important to understand for what age category it will be done. Usually karaoke is visited by people from 20 to 50 years old, and the majority are at the age of about 30 years. To increase interest in your establishment, it is important that it be located in places with high traffic - near shopping or entertainment centers. For more frequent attendance, you can arrange and place bright, colorful announcements on the walls of your bar or club - the karaoke school is recruiting students! And the address of the school. This will be a huge plus - not everyone can sing well, and such a bonus when visiting your bar will give you an edge over your competitors.

Opening a karaoke bar - details

To understand in detail how to open a karaoke bar step-by-step instruction follows:

The first thing to do is find a room. Decide on the area, as mentioned above, and find a room for a bar in the place you like. It will be better if it is located away from residential areas in order to avoid known problems.
Register LLC.
Obtain a license to sell alcohol. After all, not only those who want to sing will come to you, but also those who just want to relax, relax. Yes, and singing in a relaxed state is easier. It is necessary to take into account the requirements of the SES for warehouses establishments selling alcohol - they must be at least 50 m².
Next, you will need to obtain permission from the SES, the fire department and the city administration.
It is not necessary, but it is desirable to conclude an agreement, you can verbally, with any vocal school - this guarantees you regular customers later, a good businessman works for the future. If you have information about the school in your bar, for example, where it is possible to receive vocal lessons for beginner adults, there will be no end to visitors.

How much does it cost to open a karaoke bar? There is no clear and monovariant answer to this question, because a lot depends on the area in which you will rent the premises, how large its area will be, and so on. It also depends on the cost of the equipment, speaker system installed in a bar, since the price for it can vary from 50 to 300 thousand rubles. Interior design plays a big role, which can also be expensive. Therefore, the question “how much does it cost to open a karaoke?” suggests a highly variable response.

How to open a karaoke club in a small town? The scheme is no different from opening a karaoke bar in small towns - analyzing the population of areas, choosing a location away from residential buildings and obtaining the necessary permits.

If you are seriously puzzled by the subject - how to open a karaoke? - then just follow the recommendations and do not forget that the incentive in the form of vocal lessons will distinguish your institution from many others.

Karaoke business plan

If you want to open your own bar, or you already have your own zucchini, but you want to radically change the atmosphere in it, pay attention to the karaoke bar option. Having commissioned a market research, you will be surprised how great the human need to show their singing talent to the world is, and how few adequate offers are available to satisfy it. What you need to open your own karaoke club, you can find out from our karaoke club business plan.

In the bulk, the stages of opening your own restaurant and karaoke club coincide by 90%. With the exception of a few points, on which we will dwell. And you can find more detailed information about opening and launching your own restaurant on our website.

How to open a karaoke club: premises

As with a successful restaurant, it is desirable that your premises be located in the city center. It is also possible to open a karaoke club in areas not far from the center. The main condition is that you be clearly visible to your customers and that it would be convenient and quick to get to you. It is desirable if the building under the club will be provided with parking.

Repair and decor. As in any successful business, the main concept of which is the sale Have a good mood for money, when making a design project, you must remember - the more comfortable the client is, the longer he will stay with you and, of course, the more money he will leave you. There are two directions in which the development of the project idea can go. The first one is " nari-ban ”, the Japanese progenitor of the current karaoke clubs. The main difference between nari-ban is separate booths equipped with karaoke sets for a singing company.

Second - this is an american style karaoke bar , where public performances are welcome, so such institutions most often have one stage on which all visitors sing. Accordingly, the choice is also not great for listeners. In fact, both options are worthy of attention, but the first one is more expensive in terms of investment. Given the peculiarities of the Russian public, and the lack of hearing and voice of some not quite sober visitors, the best option would be a combination of two styles.

The presence of a professionally equipped common stage will allow anyone to discover talents, and for those clients who want an individual performance in a narrow circle, or a company with a specific repertoire, the carefully provided by you - 2-3 booths for individual pastime are quite suitable.

Also, the atmosphere in a karaoke club is extremely important. And it should start with the design of the club. Therefore, having chosen the concept you are interested in, try to reflect the mood as much as possible in the decor and interior elements of your karaoke club. Believe me, the audience will thank you with a vengeance. And the last but very important condition for the success of a karoke club is acoustics. Therefore, when sharing repairs in your future karaoke club, do not forget to hire a specialist who will help you solve this much-needed issue in the best possible way.

Musical equipment for a karaoke club.

In addition to an acoustic setup, a mirror ball, light and laser setups and everything else that should be present in any decent bar or club, you will need a karaoke setup for your karaoke bar. And if you do combined option, with individual booths, then you will need not one, but several karaoke installations.

A bit of history: The first musical karaoke machines appeared in Japan. Daisuke Inoue is considered the father of karaoke, whose restaurant performance was so liked by the audience that they asked him to leave his musical recordings so that the singer's fans could enjoy his own songs at any time. The idea caught on and became popular, and soon karaoke mania swept not only Japan. With the passage of time and the development of electronics, bulky karaoke installations have been replaced by compact installations. And in the mid-90s, the first home karaoke appeared, which caused indescribable delight among fans of this musical genre.

For individual booths, an amateur device will suffice, and a few CDs for the music library. At the same time, it must be remembered that each karaoke installation must be accompanied by a TV for especially forgetful singers. For a big stage, you will need a more serious setup. One of the solutions to the problem will be the purchase of portable microphones, into which a cartridge with recordings of minus phonograms is inserted. The cost of one such micron "Leadsinger" up to $200 per unit . And they need at least three if, for example, a whole company wants to sing their favorite song. The cost of one professional karaoke machine ranges from 1 to 2 thousand dollars, plus it needs to be equipped with microphones.

Music library of the karaoke club.

By purchasing karaoke machines, you, along with them, buy a ready-made music library for your club. The standard set usually includes one or 2 discs with hundreds of records. For microphones, cartridges are provided, on which about 30 songs are recorded. Everything would seem simple, but there are 2 "buts".

The first, and unconditional, is that 100 songs are definitely not enough for worthy attention of the club's visitors. Moreover, every day there is a mass of songs that are gaining popularity and have their fans. Accordingly, they must also be in your music library. And here comes the second "but", which is legally called "copyright" . The number of compositions sufficient to satisfy any desires of visitors exceeds 5 thousand units. If you pay a copyright fee for each, then the total cost will be about $ 1 million, which is naturally an exorbitant amount. This issue has not yet been resolved on the market.

However, there is a compromise. This is a monthly payment for the use of negative phonograms to the disc supplier company. Depending on quantity seats and club attendance, this amount ranges from 6 to 15 thousand rubles monthly. Royalty, so to speak. Clubs that use pirated discs or phonograms downloaded on their own face punishment in the form of a lawsuit from the author of the song or a supplier company that has distribution rights, and a fine, the amount of which starts from 100 thousand rubles for 1 song. And there are already precedents.

Organization of the karaoke club.

The organization of the work of a karaoke club and the process of customer service in it is no different from the organization of the work of a bar or restaurant. You will also need waiters, cooks and bartenders. In the same way, it is necessary to think over the menu and assortment of drinks. Your staff should be as attentive and well-trained as in any other self-respecting institution. The only difference from the rest is that you need to find a person responsible for organizing the performances of visitors, and for the operation of the equipment in principle. That is, you need a kind of karaoke administrator.

The second task will be to help in the search and selection of songs for visitors. Given our mentality, very often I can meet options for “extraordinary” applicants who are ready to pay fabulous money for this performance. In this case, you need to think over a "crazy menu", for example:

sing without a queue - 15 thousand rubles,
sing a song with obscene text - 30 thousand rubles,
break the plasma - 100 thousand rubles and the like.

Thus, you can insure yourself in advance against troubles with visitors, and if there are those who wish, then you will only benefit from this. An additional plus will be the organization of vocals and performances by professional singers who will ignite the audience at the beginning of the club. Of course, it will be great if you have a celebrity on the chant, but because Since this is a very expensive pleasure, it makes sense to cooperate either with novice singers or with students (graduates) of music schools.

Opening a karaoke club: finance

The threshold for entering the restaurant business starts at $100,000, provided that you intend to open a serious institution. Opening a karaoke club, taking into account the lease of premises, purchases professional equipment And wages personnel will cost you an average of 150 - 250 thousand dollars. But, as experts assure, investments pay off in the shortest possible time - from six months to a year. Judge for yourself:

The karaoke market in Russia is 20% full.
In all of Moscow, only 18 karaoke clubs are open for a huge number of residents.
According to social surveys conducted by an independent company, 6.6% of respondents visit karaoke clubs.
14% of respondents do not know where such establishments are located, but would love to visit.
27% of survey participants have home karaoke. Given the above, by simple calculations you can calculate the potential of the market yourself.

Now let's calculate the payback of a karaoke club, taking into account that there are 20 tables in the establishment: There are an average of 4 visitors at each table, in total - 80 people per evening. The average cost of a check per night, including entrance fees and a bar, is $30. Total - 2400 dollars per evening, plus a flow rate of 10%, revenue per evening averages up to 2700 dollars. For a month, the club's turnover will be 80 thousand dollars, of which 30% is the net profit of the establishment's owner. Based on the calculation of the initial investment of $250 thousand, your karaoke club can pay off within one year, which is an excellent indicator, unlike the restaurant business, where projects pay off within 3 or more years. We hope our karaoke club business plan will help you organize your profitable business in this promising and relatively free niche. I wish you success!

Karaoke bars are not only a great place for recreation and entertainment, but also a new successful trend in private business. The popularity of karaoke has grown especially strongly in recent years.

In the wake of this trend, opening your own bar will definitely become a profitable and fast-paying business. In order not to make mistakes in the calculations, you should prepare a thorough business plan for a karaoke bar.

Business Profitability

List of required initial investments:

Rent and repair of premises;
Purchase of equipment;
Additional costs for advertising and promotion of the bar;
Remuneration of hired labor of personnel;
depreciation expenses.

Choosing a place and premises for karaoke

For those who want to get down to business as soon as possible and not worry about the individual design of the premises, we recommend buying a ready-made club with a fully equipped room. In other words, take someone else's business.

There are quite a lot of such advertisements for the sale of an already held restaurant business. But do not rush to a decision, it's good, profitable business do not sell.

Perhaps this place has a small target audience or a small flow of people, so things did not go well for the owner.

For a more reasonable and thoughtful approach to organizing a profitable project, it is better to create it from scratch.

This means that before you open an entertainment facility, you need to carefully study the location of the future premises, understand what kind of people live in this area, whether they are interested in this type of recreation.

Try to find the opening and closing statistics of similar establishments around the area over the past few years. In a small city, business will go worse than in a metropolis.

To create a truly original and cozy atmosphere in the bar, invite a designer and decorating team. They will make your place stand out, which will have a positive impact on word of mouth advertising.

If you are staying in a working or sleeping area, you should not buy expensive curtains and luxury furniture, such a club will only scare you away ordinary people. Luxury is appropriate in those karaoke, which are located in the elite areas of the city or in its center.

Rent will result in you 50-100 thousand rubles. monthly (20-50 sq.m.), taking into account the location of the premises. The cost of repair and decoration work will average from 50,000 to 100,000 rubles (depending on the scale).

Apparatus and equipment for the bar

In our country, the universal performance of songs is popular. Individual booths, as in Japan (the country where karaoke originated), have not yet taken root.

If you decide to be the first to bring such booths into fashion (and they are not cheap), get ready for the financial risk.

mentality Russian man different from the Japanese, we like to show our talents to everyone and sing in public, but in Japan, personal space is highly valued.

If we talk about standard equipment, then in the club you will need to purchase:

Lighting devices (dynamic, fill light, led strip, stroboscope) - 18,500 rubles.
Projector and projection screen - 23,000 rubles.
Mirror ball for a disco - 1200 rubles.
Small plasma TVs (minimum 3 pieces) - 192,000 rubles.
Radio microphones (at least 4 pcs.) - 12,900 - 246,000 rubles. (depending on brand)
Speakers, amplifier, remote control and sound processing devices 123,500 rubles.
Directly to the karaoke system 225,000 rubles.

Let's take a closer look at the last point. Now there are two main karaoke systems recognized all over the world. These are AST-100 and Evolution Pro. They are leaders in the convenience and full-length song catalogs. They require a paid update of the song base every 6 months, but this is necessary so that your visitors can always perform a fresh hit.

The club will spend at least 600 thousand rubles on the purchase of acoustic equipment and sound devices. We will make a reservation right away that the better the equipment is, the harder it is to break it, so do not skimp on this parameter. You definitely don’t need constant spending on microphone repairs.

Advertising

In order for everyone to know about your institution, you should not only open it, but also take care of competent PR. It all depends on the budget that you can spend on bar promotion. The most effective solutions:

Banners on popular city sites;
Distribution of advertising printing in the area of your future bar;
Constant holding of themed evenings dedicated to the opening of your karaoke (hen and stag parties, discount days, competitions and tournaments)

For competitive events, it is necessary to prepare a budget that will be spent on paying for animators, presenters, popular DJs in the city and prizes. It is desirable to have such a column in the budget all the time so that the club maintains its status. For such expenses, 30,000 - 50,000 rubles should be provided monthly (this amount depends on the level of invited specialists).

Staff salary

For the club to work fully, you should hire:

Two chefs 35,000 rubles for 1 person
About ten waiters (if the institution is small) - 13,000 rubles. for 1 person
Two bartenders - 15,000 rubles. for 1 person
Four guards - 30,000 rubles. 1 person
Two cleaners - 10,000 rubles. for 1 person
Two administrators - 45,000 rubles. per person
Two backing vocalists - 50,000 rubles. for 1 person
Two sound engineers - 40,000 rubles. for 1 person

These people will work in shifts. If desired, you can also hire hookah workers. Wages in such places are calculated as follows: rate + tips without restrictions.

Depreciation expenses

Any business should have a contingency item. It is necessary in case of repair of failed equipment and other situations that do not fit into your plans. Of the monthly profit that the club brings, at least 5% of this budget should be set aside.

Calculation of monthly income

This item depends on the area where you plan to open a bar and its popularity. Of course, if your karaoke has a bad reputation, this will be reflected in the profits. Therefore, introduce a mandatory face control rule and strict rules for staying in the bar itself. Make sure that there are no frankly drunk people inside who will prevent others from enjoying their vacation.

In remote areas and a small town, the net profit of an institution, taking into account already paid salaries, can be 75-100 thousand rubles a month, in the central parts - 150-200 thousand.

Service rates

The karaoke service is organized in different ways. There are three popular payment options:

Deposit account (the visitor deposits a certain amount of money, for example, 500 rubles, which goes to pay for food and drinks, and gets karaoke for free);
Payment for karaoke for the whole evening (an amount of 400-500 rubles is immediately paid and the performance of songs is unlimited during the evening);
The cost of each song is paid separately (about 50 rubles)

Options such as the performance of an ordered song by a vocalist or a client singing outside the established queue are paid more (about 200 rubles at a time).

Nuances and features of running a karaoke business

Opening a karaoke bar is not as difficult as maintaining its popularity against the background of competitors. The reputation of an institution is the basis of its attendance. Carefully select staff, train them and adequately reward them. Remember: a satisfied customer will bring ten more people with him, and a dissatisfied one will beat off the desire of hundreds. Good feedback work better than any advertisement.

Karaoke is always closely connected with the restaurant business, these are interacting directions. To keep your bar open, comply with all fire safety regulations and good level sanitary conditions in the kitchen.

Always prepare fresh food, do not try to make money on expired products. Now the time has come when the service is valued the most, and people are willing to pay a lot of money for its decent level.

Results

Approximate installation capital: 600-800 thousand rubles.

Average payback period: 6 months.

Average monthly profit: 75-200 thousand rubles.

Source: https://BusinessXXL.ru/karaoke-bar/

How to make money on the desire to sing?

What is the idea based on?
Do we use a lot of money or are we limited by a small budget?
What to do to make the idea bring money?
What other investments are required?
A few words about income

The implementation of the idea of opening a karaoke bar can bring a considerable amount of money, if this idea is approached correctly and many sensitive points are thought through that can bury this idea at its very start, without bringing the expected income. That is why you need a serious business plan for a karaoke bar or club.

Not everyone can decide on a public performance, which, in turn, simply buries the very idea of \u200b\u200bopening a karaoke bar.

How to start a karaoke bar business plan? The population in the countries of the post-Soviet space is more complex than the population of the United States or Japan, and there must be a weighty reason for such speeches.

In a karaoke bar, visitors must have a reason to perform. And this must be taken into account when you are putting together a karaoke business plan.

If you carefully observe people who have decided to make such spontaneous public appearances in front of an unfamiliar audience, it turns out that one of the motivating motives is the use of alcoholic beverages.

And here lies the key to how to open a profitable karaoke bar and what to do to launch such a club. Even to suggest that 9 out of 10 people who sing karaoke in a public place were already in a state of intoxication, then this would simply underestimate this figure.

When planning a club as a non-alcoholic establishment, you need to understand that more than 90% of potential customers will be lost.

On the other hand, with very good marketing, you can attract targeted visitors to the club, but again, selling drinks and food brings a lot of income for the club, often more than the karaoke itself.

Armed with this knowledge, we plan the next stage. Actually, where and how to choose a place for the club? If suddenly there is a desire and money to open a karaoke bar from scratch, then its opening will not differ much from the opening of an ordinary bar, restaurant. It will take a lot of time, effort and, of course, money.

So, how to open a karaoke bar? The requirements for opening such a club are as follows. It should be located in a fairly crowded place or where it is easy to get to and where there is good parking for cars.

The room itself must be designed to receive at least fifty people. There must be an appropriate interior inside. A vivid and extreme example: a catering canteen would not be the best place to implement an idea with a karaoke bar.

The club will need to change the interior with the appropriate design.

How much does it cost to build a club from scratch? Considering the conditions put forward to such an institution, especially to its location, such a building costs from 300 to 500 thousand US dollars.

It is much easier, faster and less expensive if you refer to an already functioning restaurant, cafe or bar with your project. This approach is much more attractive from any point of view.

Even if you have funds for a club or a restaurant, opening it will still take a lot of time, while you can already receive income from a karaoke bar in just a week.

Part of the idea, namely the mechanisms for attracting customers, various promotions, texts for visitors and everything else related to marketing, you already test before opening your own institution.

In the end, it's easy to come up with a promotion in which each karaoke participant will leave you their contacts. The accumulated customer base will be an excellent capital when opening your establishment. One SMS mailing can bring you a lot of potential and already hot customers to the opening of your club.

You should not be afraid that the institution where you rented a karaoke site will take over your idea.

Therefore, treat the idea as if it were a real business with all the ensuing consequences.

That is why the presence of karaoke equipment in a foreign restaurant cannot be the reason for your despondency. The equipment is there, but how is it in demand? How well does it justify its investment? Maybe single "singers" induce the restaurant management to sell expensive equipment? So feel free to go ahead and talk.

On the contrary, the fact of having such equipment can cheer you up. It can be an unheard of stroke of luck to really start from scratch. After all, you don’t have to spend money on equipment and you can hope for the presence of several thousand phonograms, which, again, will not require considerable costs and investments from you.

Accordingly, more money will be left to attract customers.

After agreeing on the lease of the premises (and if you're lucky, then the equipment), proceed to the creation of attracting and selling mechanisms. That is, marketing. First of all, decide on the person who will take orders.

It is better to immediately separate from all other establishments offering such services and hire a person who has experience in conducting entertainment events. A professional toastmaster is ideal, who can sing beautifully and “shake up” a dull hall.

Such an employee will be able to drag visitors to participate in the performance and sing to the whole hall the song that the speaker just sang in front of him, he is also a professional toastmaster.

And already ordinary karaoke turns into a whole impromptu low-budget show that will give customers not only for karaoke, but also for the restaurant or bar itself. You can play well on this by offering your business idea to the management of the institution. Promise an increase in visitors, offer a trial period.

It is clear that a professional toastmaster will require a large salary. But such a person is able to bring many customers than just a person who takes orders and does not know how to sing and “start” the hall. By doing “like everyone else”, you risk getting income from karaoke “like everyone else”. And even less.

Because when only this idea was implemented in the provincial regional centers, and there was one restaurant “already with a whole karaoke” for the whole city, then the profit was higher.

After similar equipment, although not always professional, began to be installed in many bars and restaurants, even in those with less than fifty seats, the profitability of this idea fell sharply.

Therefore, change the approach to the implementation of the business idea itself, move away from competitors, create a somewhat non-standard service.

One serious disadvantage with such an organization is that they will try to take a very good employee away. And the management of the restaurant. Therefore, one of the main tasks will be to counteract this phenomenon as much as possible.

So, to implement the idea with a karaoke bar, you will need to rebuild, rent the premises itself to create a karaoke bar, or agree with the management of an already functioning bar or restaurant to rent some space. The institution must accommodate at least fifty people and be located in a convenient area for visiting it.

You need some serious equipment. Good sound equipment should include karaoke machines, televisions, microphones, speakers, and amplifiers. How much could it cost? This will require from 10 to 40 thousand dollars.

In addition to equipment, you will also need a good music library, including at least several thousand songs and phonograms. This point needs to be seriously considered for copyright infringement. You need to think with a lawyer, having prepared in advance for possible difficulties.

90% of success depends on the person you hire. Ideally, if this toastmaster is you. Or if you perform with the toastmaster and accompany him. Or if the toastmaster is your close relative, for example, a temporarily unemployed father or sister. In this case, the chance that your employee will be taken away is close to zero. Take this matter seriously. Otherwise, you will soon bite your elbows.

If you can’t find a suitable toastmaster employee, or the restaurant’s management is not happy with the idea of \u200b\u200bsuch a show you proposed, or you don’t like it, take up actively visual printed materials.

You will need the services of a copywriter to help you create great headlines for banners and posters that encourage visitors to sing. Calls and headlines should be based on what such singing will bring to the client. After all, singing is a huge health benefit.

Some small information can be placed in booklets lying on the table of the institution. In general, create and do not stop.

Consider the possibility of video, audio recordings on discs for a fee. Many will want to get a CD with how they performed. In 10-20 years, such memories will be simply priceless.

The cost of such a disk, depending on the region, will vary from 400 to 1500 rubles.

If you decide to start everything from scratch, the idea will pay off no sooner than in three years. And then, with the corresponding demand for drinks, food and other related services.

With a zero start, you can make a profit in the first month.

The amount of profit varies from region to region and ranges from 40 to 100 thousand rubles a month, depending on where the karaoke bar is located: in a provincial regional center or in a large city.

If you rent a room in an operating bar or restaurant, then 25% of your earnings must be paid for rent. Another 25-35% will go to the salary of the employee. It remains 40-50%, and this is from 16 to 50 thousand rubles a month. If the club belongs to you, then you deduct the employee's salary and leave yourself up to 75% of the profit.

Source: http://gejzer.ru/statii/strategija-karaoke-club.html

How to open a karaoke bar? Business plan with calculations

If you are thinking about how to open a karaoke bar, then you need to draw up a competent business plan with calculations and analyze the market in the selected region. This is the only way to count on the success of the project and reach a quick payback.

Relatively recently, such clubs began to open rapidly throughout Russia and won their client. People are interested in spending time with friends, having fun, but not spending too much. This type of recreation is accessible and interesting, and therefore is popular with various age categories.

The karaoke bar combines the activities of restaurants and entertainment complexes. In it, people gather in large or small companies, drink drinks and light snacks and perform their favorite pop hits on their own. This way of rest came to us from Japan, but in just 10 years it conquered the whole world.

The relevance of this type of business is also confirmed by the fact that during a crisis people try to find a way to spend their free time that will not be too costly. And karaoke bars in this regard significantly outperform restaurants and cafes. You can expect that the institution will have customers at any time.

The main target audience is considered to be people aged 25-35 with an average income and not embarrassed by public speaking. The number of men and women who prefer such a holiday is approximately equal. But when creating the interior of an institution and selecting a music library, other categories of the population must be taken into account. So, often older people and young people become guests here.

Like any other business, opening a karaoke bar has its pros and cons. This must be taken into account:

Starting investments are quite high, but they pay off much faster than when creating a restaurant or entertainment complex.
You need to carefully monitor the visitors and prevent the appearance of too drunk or aggressive customers in the hall.
A very important issue is the reputation of the institution, on which its popularity will depend.
If you open a karaoke bar in a small town, then some questions about organizing a business become easier, but in this case it will be more difficult to achieve a constant high attendance.

Today there are two main types of karaoke clubs:

Nari bar is a Japanese system where individual booths for individual companies are installed. This will require high financial investments in the creation of closed areas with full soundproofing and a karaoke system for each of them.
The American club is more suitable for daring performers who want to perform on a common stage. From the entrepreneur, this will require lower costs and more simple design hall.

Each of the options has its own advantages and disadvantages, and it is difficult to predict which version will appeal to your potential customers.

Here you can download a sample business plan for a karaoke bar for free.

Registration process

How to start a business? Of course, with paperwork. To do this, you will have to contact the tax service and apply for the creation of an individual entrepreneur, joint-stock company or LLC. The first form is convenient only if you are not going to sell alcohol and limit yourself to small size premises. But without the sale of alcoholic beverages, a karaoke club has almost no chance of success.

A more correct form of organization is a JSC or LLC. At the same time, you can divide the initial investment into several people who will become co-founders. So, it will be easier to open a good and interesting institution, which will soon pay for itself and begin to bring high profits.

The OKVED activity code is indicated as follows:

40 - for the bar.
30 - restaurants and cafes, which are also related to the karaoke bar, which serves various snacks and desserts.
29 - responsible for the entertainment program and recreation of visitors.

Since the establishment will operate as a restaurant business and various drinks and food are served to customers, the sanitary and epidemiological service imposes special requirements on the premises. To do this, you need to prepare it in accordance with SanPiN 2.3.6.1079-01. Only after a thorough check will you be issued a permit.

You will also have to pay for a license to sell alcohol. It is these drinks that are preferred by the majority of visitors to karaoke bars, so without selling them it will be difficult to attract enough customers.

The fire department will monitor the safety of the premises and issue required documents. To do this, the building must have emergency exits, a fire extinguisher, a fire alarm and an evacuation plan.

Do not forget to visit the city administration, where you will be given another permit to operate and open a club in a certain place. Since a karaoke bar involves an entertainment program, for these purposes you will also need to familiarize yourself with such documents as GOST 30389 and 31985-2013.

Get ready for the fact that the whole process will take a lot of time and require certain financial investments to register a company. If you feel like you can't handle everything, or just don't want to deal with the paperwork, then hire a lawyer, an experienced professional, who will take care of most of the bureaucracy.

Another way to make organizing a business easier is to purchase a franchise. At the same time, you will have step-by-step instructions on how to open a successful karaoke bar, a recognizable brand, the help of experienced entrepreneurs and a set of everything you need to equip the establishment.

Which room to choose?

First, focus your attention on the location of the future club. This does not have to be in the city center, where rent is quite expensive, but sleeping or industrial areas will not work either. The choice of location must meet the following criteria:

proximity to densely populated areas of the city;
the club is easy to get to;
there is public or private parking nearby;
The establishment is located some distance from residential buildings so that the noise from the music does not disturb the residents.

The room itself must meet all the standards and norms of the SES and GPI, and also be at least 100 square meters in size. m. It is this space that should be enough to place on its territory a hall for visitors, a kitchen, a bar, a bathroom, a wardrobe and utility rooms. It is very important that a ventilation system is installed in the building, electricity, water supply and sewerage are carried out.

If you decide to create karaoke in a residential building, then you will have to seriously take care of the soundproofing of the room. Don't forget about the design of the club. It should be modern, attractive and appeal to visitors of various age categories and social status.

Of course, most of the clients do not belong to the elite, so furniture, curtains and various decorations do not have to be expensive. But the hall is decorated with taste. You may need to hire a designer for this.

Equipment

The amount of capital investment will largely depend on how much the selected equipment, furniture, etc. cost.

But in this case it is impossible to save on technology, because the quality of the acoustics completely determines whether visitors will come to you next time or not.

If the equipment breaks down frequently, this will not only increase the constant cost of repairs, but also turn away the majority of customers.

Here is a list of important components:

Directly karaoke system.
Acoustic microphones.
Mixer.
Light equipment.
Projector.
Mirror ball.
Plasma TVs.
Columns.
Amplifiers.
Furniture for visitors (tables, chairs, sofas).
Bar counter with shelves for alcohol.
Kitchen appliances (rather simple, since you don’t have to cook hot dishes).
Tableware.
Bathroom equipment.
Cash register.
Some little things for office space (lockers, shelves, etc.).

In addition to the equipment and furniture itself, you need to take care of the repertoire for the performers. It also has special requirements:

The number of songs should be at least 3000-4000, but more is better.
The range of tracks includes a variety of genres of music.
Once every six months, the repertoire should be changed, adding modern, popular and recently released hits.
All discs must be licensed, otherwise huge fines can be paid for a pirated music library. In addition, it threatens to completely close the club.

Recruitment

Since the karaoke bar is usually open from 12.00 to 24.00, without days off and holidays, it is advisable to hire two shifts of employees at once. The minimum staff consists of:

Manager (his functions can be performed independently).
Bartender.
Accountant (more often they invite a person from outside to perform certain operations).
Cooks.
2 waiters.
Security guard.
Cleaning ladies.

In order to save money, you can hire unskilled specialists for most vacancies. For example, students are not averse to working as waiters or bartenders and do not require high salaries. But the cook and accountant must be professionals in their field.

Advertising

When opening a karaoke bar from scratch, you need to prepare for the fact that the influx of visitors will not appear immediately. This requires a competent and targeted advertising campaign:

Think about how to name the institution and place a bright and noticeable sign above the entrance.
Use banners on entertainment sites and forums.
Hang up posters and ads where many of your potential customers walk.
Print flyers and distribute them in public places.
Hold interesting contests and themed evenings, giving valuable prizes to the winners.

Connecting fantasy and creativity you can get a lot of regular customers who will return to your karaoke bar almost every week. And here it is important to maintain a certain level of service so that visitors always leave satisfied and bring their friends.

Expenses

When drawing up a business plan, it is important to correctly calculate and determine how much money is needed to start and maintain the club on a permanent basis. To do this, prescribe all the estimated costs.

In addition, every month you will need a large amount for regular payments.

But more accurate figures will depend on the selected models and set of equipment, thoughtful interior, quality of furniture and accessories, dishes, etc.

How to earn?

Income is much more difficult to predict, since it’s not immediately clear how many people will become your regular visitors and how much money they decide to leave in a bar in one visit. Initially, consider what form of payment is expected. Today, the following options are popular:

Purchase of tickets plus separate prices for drinks and snacks.
Hourly rate for staying in the club.
The entrance fee includes a standard set from the menu and the performance of songs.
The client deposits a certain amount into an escrow account, from which the payment for the order is gradually deducted, and karaoke is provided on an affordable basis.
Unlimited access to the club with a pre-set price per evening.
There is a price list for dishes, drinks and songs separately, and the visitor himself decides what he will spend the estimated amount on.

Average statistics show that a popular karaoke bar in a small town brings in about 750,000 rubles a month. After all calculations, net profit remains 250 thousand, which will help cover the initial investment only after 8 months.

But these are just averages. Everything will largely depend on the attendance of your bar, the prices set, the services offered, the presence of competitors in the area and much more.

Be prepared for the fact that in the first months you will have to work at a loss, since very few people still know about your discovery and are not always ready to immediately change their usual vacation spots for something new. Therefore, it will take some time to gain momentum. It is believed that the full payback of such a business comes in 1.5-2 years.

: how to open a karaoke bar?