Karaoke has a “significant positive influence” in attracting people to restaurants and bars, encouraging them to stay longer and resulting in increased sales, a study by Aalto University has revealed.
Singa, Helsinki-based entertainment software specialists, collaborated with the university to conduct the research into the power of karaoke which has an estimated total market value of $15bn (£11bn). The study titled ‘The Value and Benefits of Karaoke’ looked at 37 venues across the UK during spring 2018 from a range of different sizes and offerings onsite, from chic nightclubs to smaller bars and entertainment venues. Data was collected on a number of occasions when there was a karaoke event and when there was not.
The research showed that karaoke had a positive influence on sales, attracting people to venues and encouraging them to stay longer. During karaoke nights, the number of customers at the venues increased by an average of 31% while 5% of venue owners said the number of customers almost doubled. Some 5% of respondents said karaoke had a negative effect on customer numbers.
The average customer spend grew by 35% when there was karaoke. According to the results, the reason people spent more time at a venue with karaoke was partly was due to the queue to use the systems. They were said to be waiting for their friends to have their turn to sing, while enjoying drinks and food at the same time.
Venues that organised karaoke nights occasionally, two to three times a month, grew their average customer spend by 42%. This suggested karaoke works as a revenue driver even in venues that are not full time karaoke bars.
Singa CMO, Jouni Pesola, said: “While the positive impact of modern karaoke entertainment on restaurants revenues and customer footfall was evident from all the feedback we got from our almost 300 venues, the Aalto University research study showed us just how big of an impact a service like Singa Pro can have.”