Robert Lastimado says that at his north Spokane business, Ultimate Karaoke, he basically rents private spaces to party in.
We dont sell karaoke, says Lastimado, 36, of Spokane. We sell a good time. Everyone is in need of having a good time.
Each cozy room he rents is furnished with new microfiber sofas, tables for food and drinks, and has access to Lastimados 9,000-song library to crank up the volume, sing, or just sit back and enjoy the party atmosphere. And he hopes his business eventually will have him singing all the way to the bank.
Lastimado is co-owner and operator of the 3,000-square-foot karaoke facility at 7456 N. Division, near the Onion restaurant. His business partners are Dustin Kim, of Spokane, and Jerry Encomienda, of Honolulu.
Ultimate Karaoke just completed its first year of operation, Lastimado says, and though its off to sort of a sporadic start, he plans on sticking around and making the business work as well as similar ones do in his native Hawaii.
Inside his business, five different-sized and different-colored rooms are available, with studio-quality sound systems and large, flat-panel monitors. The rooms are able to accommodate from one to 60-plus people. Posters of rock stars are everywhere, providing inspiration for customers, and the lights can be dimmed to each groups preference.
Ultimate Karaoke is open from 4 p.m. to 2 a.m. Tuesday through Saturday, and closed on Sunday and Monday.
An hourly fee is charged based on the number of people in a group. The fees for Friday and Saturday nightsthe most expensive timesrange from $30 per hour for a group of up to five people, up to $90 per hour for a group of between 41 and 60. Prices are about half that Tuesday through Thursday, and from 4 p.m. to 6 p.m. on Friday and Saturday. On average, he says, groups will occupy the rooms for two to three hours per visit.
Despite the late hours of operation, hes quick to point out that Ultimate Karaoke is not a bar, nor does it serve non-alcoholic beverages or food. Customers bring their own food and beverages, or have them delivered. They also can bring their own alcohol if they get a $10 banquet permit from one of the states liquor stores, which Lastimado says takes about five to 10 minutes to get.
During the last year, most of Ultimate Karaokes business has come from people less than 21 years old. For those who are too young to go to a bar, the facility has been a big hit, he says. He plans to spend the next year aggressively trying to expand his customer base, including with such customers.
He says another focus of his will be tapping into new services, such as featuring computer games like PlayStation and Wii as options for customers.
Lastimado moved to Spokane from Honolulu in 2005, to help his friend, Noel Macapagal, open and manage Raw Sushi & Island Grill in downtown Spokane. Macapagal and Lastimado met as students at the University of Hawaii.
Before moving to Spokane, Lastimado also helped manage Rumours nightclub at the Ala Moana Hotel, in Honolulu, and managed HMC Karaoke, near Honolulu, where he used the same system of operation as at Ultimate Karaoke.
In Hawaii, as in Japan, a business such as Ultimate Karaoke would thrive, he says.
Although karaoke is popular and recognized here, private karaoke rooms are a new concept to Spokane, he says. Karaoke is often associated with bars, and performing in front of a group of strangers. Based on this, the market would appear limited here in Spokane. We see this as an opportunity.
The absence of direct competition is promising, he says. Still, the first year has been up and down, he says, as expenses have outpaced revenues.
It has been a real roller-coaster ride, he says. The sluggish economy hasnt helped.
Bobbie Small, co-owner of Affordable Service Karaoke, a retail store in Spokane Valley that specializes in karaoke equipment and music, says that while Lastimados concept is new here, I think its a great concept. He just needs to get the word out more. I dont see why it cant catch on, especially for private parties. Some people dont have a place big enough for a party.
Affordable Service Karaoke, which also provides karaoke for private parties, sold Lastimado equipment for Ultimate Karaoke. Lastimado also updates his song library through the store.
Along with focusing on marketing Ultimate Karaoke in the near term, Lastimado puts a lot of emphasis on having the latest music, and on expanding available genres of music, such as having more ethnic songs.
Hes a hard worker and hes put a lot of time and effort into that business, Small says.
For Lastimado, who considers himself an artist by nature, its his first time running his own business, a long-time dream of his. And run it he does, with only a little help from Kim.
The one thing that Ive learned most is that although you have a game plan, things change and you need to adapt to your circumstances, Lastimado says. Although I would have preferred large sales, slow sales have forced me to run a lean operation, keeping our costs as low as possible.
There are no employees, and rent payments and electricity costs make up about 70 percent of his expenses.
In the year ahead, Lastimado says he sees Ultimate Karaoke doubling its revenues compared with its first year. Further out, he says hed like to open a second Ultimate Karaoke, possibly in either the Seattle or Portland area.
Our best customer is not a person with a good voice, he says, but rather someone that wants to have a good time and enjoy the finer things in life. But a good voice doesnt hurt.
Contact David Cole at (509) 344-1265 or via e-mail at davidc@spokanejournal.com.