British bars and restaurants installing karaoke systems experience a 12.2% increase in ROA, according to research by Finland’s Aalto University.
Finland’s Aalto University (www.aalto.fi/en) has undertaken the first ever research project into the financial impact of karaoke rooms within UK bars, restaurants, and other hospitality venues. At a time when the UK hospitality industry is under increasing pressure (over 6,000 hospitality venues closing their doors between December 2022 – December 2023, according to data from CGA by NIQ and AlixPartners), the findings present a potential silver bullet for the sector: the study of 53 UK venues during 2018-2022 revealing venues with karaoke experienced a 12.2% increase in return on assets (ROA) when compared to a control group without.
The Karaoke Room Effect – Key Findings From Aalto University Study, and additional research
The research was commissioned by Singa (www.singa.com/business), the Finnish startup revolutionising the karaoke industry by providing innovative, professional karaoke software that gives venues access to a fully licensed song catalogue (frequently updated to add new hits), and customisable display and room management capabilities. Singa currently provides professional karaoke tech and business consultancy to well-known UK hospitality venues such as Boom Battle Bar and Roxy Leisure (both of which featured in the analysis).
Singa asked Aalto University researcher Ngoc Anh Pham to explore the impact of karaoke rooms on financial performance in UK hospitality venues. Aalto University is the leading university in Finland and, created through the merger of Helsinki University of Technology, Helsinki School of Economics, and the University of Art and Design Helsinki in 2010, is in the top universities for business and economics worldwide. The study reveals a 12.2% increase in ROA for venues with karaoke compared to those with no such facilities (ROA measures how effectively a business uses its assets to cre
