Of course, the reason fewer people are going to karaoke these days isn’t because of the cost, but because of avoiding face-to-face social gatherings. ▼ While alcoholic drink orders are OK too, the free-room plan is not applicable with Karaokekan’s all-you-can-drink packages. To that end, customers on the free-room plan are required to order one food item and one drink each, but with a soft drink and a side of fries only running about 600 yen (US$5.60) total, and no apparent time limit for how long you can use the room, it’s still a great deal for customers. In other words, Karaokekan isn’t saving any money on infrastructure expenses by having fewer customers, so even if they let customers use the rooms for free, as long as they’re ordering food and drinks, it’s a better situation for the company than letting the rooms sit empty. The karaoke song select systems, monitors, speakers, and microphones cost the company the same amount of money whether they get one customer for the day or 1,000. Second, karaoke parlors’ expenses related to the actual music/singing part of their business are largely fixed. First, room fees are only one source of revenue for karaoke operators, with food and drink being the other. You might be wondering how Karaokekan, which has locations across Japan, plans to boost its bottom line by not charging any money for its marque service, but there are two key factors here.
#JAPANESE KARAOKE COMPANY FREE#
“Gather a group of friends and sit together in a closed room while breathing all over a microphone that you pass back and forth” is a business model that doesn’t mesh particularly well with a pandemic, after all.īut a good company needs to adapt with the times, and Karaokekan, one of Japan’s largest and most popular karaoke chains, has come up with a bold new strategy to boost its revenue: it’s making all of its karaoke rooms free to use.
A lot of businesses are taking a beating these days, but the blows are especially heavy for karaoke box operators.
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