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SINGAPORE – Kloud Karaoke Lounge has been unable to reopen for about half a year since the two-month circuit breaker that began in April due to government concerns that nightlife venues such as clubs and karaoke venues are high-risk areas for Covid. -19 propagate.
And it could remain that way permanently next month if things don’t improve as the pandemic drags on and rental costs for the four-year-old karaoke hall in Tanjong Katong snowball.
“Every day there is a delay, we have to put up with the rent,” said Mr. Ronald Ng, Director of Kloud Karaoke Lounge. “Our owners are chasing us to rent … and it’s not a small sum … I don’t know if we can hold out until next month.”
Things are getting desperate for some nightlife operators, with no certainty as to when they may reopen, as government updates on Tuesday (October 20) suggest their businesses may not be able to resume even at the beginning of phase three of the reopening. from Singapore, which could happen at the end of the year.
And switching to other lines of business to stay afloat has been a huge challenge for many for a number of reasons.
In an August report, a survey by the Singapore Nightlife Business Association and the Singapore Entertainment Affiliation, which represents karaoke operators, showed that fewer than 10 percent of respondents said they would survive until the end of October.
While larger companies can bear the financial costs of remodel, smaller ones, like entertainment company Phat Cat Collective, are feeling the rush.
Co-founder Francesca Way and her colleagues have been working to convert two bars into food and beverage outlets.
Phat Cat Collective runs Nineteen80 and Pinball Wizard, two retro-themed game bars in Tanjong Pagar and Rochor, respectively.
Ms. Way cited concerns about bearing the financial costs of rotation, as well as difficulties in obtaining the proper licenses.
“Building something like a kitchen costs more than five figures,” he added.
While the company began the transformation in August and applied for a license change in September, the complex nature of licenses and the fact that the process is managed by multiple agencies means things can be slow.
For some larger companies with more flexible multipurpose spaces, such as the Zouk nightclub, the switch to other business lines has been more successful.
Still, Andrew Li, CEO of the Zouk Group, said the process to obtain the various licenses from the authorities was challenging.
He cited the many agencies involved in turning Zouk’s dance floor into a late-night cinema, such as the Singapore Food Agency, Infocomm Media Development Authority, the Ministry of Commerce and Industry, the Singapore Tourism Board. , the Urban Redevelopment Authority and the Ministry of Health.
“Fortunately, the Government has been very supportive of our various pivots and we have done everything possible to alleviate any of their concerns, as well as to ensure that we have adequate social distancing measures for each new concept,” he added.
Zouk turns into a spinning studio during the day.
Several karaoke operators, surviving on dwindling bookings, also mention difficulties obtaining approvals to convert their business licenses and limited space to change their business.
Ng, who is also chairman of the Singapore Entertainment Affiliation, which has more than 100 members, said that touring was more difficult for karaoke venues compared to nightlife industry pubs and bars due to his lack of experience in food and drinks.
He said that turning his karaoke room into an office for rent is not a viable or long-term solution because other venues have opened that can serve similar functions, such as libraries.
“Many people are also working from home due to the pandemic, so they would not need these offices,” he said.
Teo Heng KTV Studio director Jean Teo added that changing how the chain’s facilities can be used is not a straightforward process. If the use of the facilities is changed and Teo Heng wants to apply later to reverse it to return to the karaoke business, there is a risk that the application will be rejected.
Mrs. Teo said: “We do not sell food or alcohol, we only have facilities to sing, so it is difficult to turn it into a restaurant because we are not specialized in that. We will have to tear down some rooms to make a kitchen. More investment (in this) will affect sustainability. “
The popular karaoke chain has closed two of its 14 outlets since March 27, including its first outlet in the Katong Mall.
With a soft spot for its employees, the company has paid their full salaries with contributions from the Central Provident Fund (CPF) for the past six months. However, the high losses led the employer and employees to jointly decide to accept a 50 percent pay cut from October to help the company get through this difficult period. There are plans to pay for this later.
Ng said he had discussed with the government how his business and others in the karaoke industry could safely reopen and help limit the spread of the coronavirus.
But it has been waiting for a response since a proposal was submitted in September.
The government is also expected to announce a series of measures to support nightlife businesses this week, which have not yet been adopted until Wednesday.
“The two options offered by the government is that if you don’t pivot, you go out. But pivoting is not for the entire industry,” he said.
Additional information from Wong Shiying
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