Private-Room karaoke lounge

Friend groups, birthday and bachelorette parties, office teams, students and families (at earlier hours).

Room hire by the hour or per person, plus drinks and snacks. Evenings and weekends are busiest, so party packages and weekday offers help fill quiet times.

• Customer service and hosting
• Managing bookings and staff rotas
• Basic bar or snack handling
• Budgeting for rent and equipment

• Liquor licence rules differ by province, so check with your provincial regulator before planning drink sales
• Zoning, occupancy limits, fire code and soundproofing, so check with your municipality
• Music licensing for public performance (for example SOCAN and Re:Sound tariffs) and using a properly licensed karaoke song provider
• Food permit from your local public health unit if you serve anything beyond pre-packaged snacks
• Commercial general liability insurance and WCB/WSIB coverage once you hire, with rules varying by province
• High fixed costs such as rent, and slow weeknights and winter months, so plan some cash buffer

Startup costs are estimated at typically around $50,000 to $250,000, depending on the premises, number of rooms, soundproofing, equipment and fit-out. Plan a cash buffer for slow weeknights and winter months.

Monthly revenue is estimated at typically around $10,000 to $50,000, depending on location, number of rooms, opening hours and drink and snack sales. The estimates assume at least about 40 hours a week.

Check your provincial liquor licence rules, municipal zoning, occupancy limits, fire code and soundproofing. Also check music licensing for public performance, a licensed karaoke song provider, food permits, insurance and WCB/WSIB coverage once you hire staff.