Explore NYC: RPM Underground

℅ RPM Underground

Roughly five years before RPM Underground opened, a plan was hatched. A friendship formed at a bar quickly led to a viable, live-changing business opportunity. Raj Banik, one of the three owners of RPM Underground, spoke to The Daltonian about his experience as a business owner and his aspirations for RPM’s future.

From a list of 20 potential names the entrepreneurial group narrowed it down to the first option on the list: RPM Underground. RPM stands for Revolutions Per Minute, which is a measure of how fast a record is spinning. Underground refers to the karaoke bar which is located in the basement level of the building. The name was also appealing as it was “something that mentions a few things about [the] place, sticks in peoples’ heads, and is easy to shorten.” According to Banik, the name is something that “just popped into [his] head” and stems from the store’s dual functions: a record store by day and a karaoke bar by night. 

When creating RPM’s business plan, Banik spent a lot of time looking for an unsaturated karaoke and event space market that was also very close to a lot of businesses. “We do a ton of company events and it's very easy for their employees to get there.” RPM’s location is also very convenient subway-wise as many have stations and stops nearby, making it easy for regular customers to get to return. After looking for the perfect location for 5 years, they eventually found 246 West 54th Street. 

Another main topic of discussion in RPM’s business plan was building community. “Karaoke is great because it really brings people together. On a Friday or Saturday night when the bar is full we’ll have a few hundred people in our space singing, dancing, and eating all together having a great time and finding songs they all love.” The environment brings people together and invites them to have fun, so there is rarely a disappointed customer. By day, though, the Record Store does the same thing for the neighborhood. When RPM’s space was initially leased, they were also given a few hundred square feet on the ground floor. Not knowing what to do with it, the group “wanted to build something fun for the neighborhood and thought a record store would be something super fun. Everyone connects over music.” Given the resurgence of vinyl sales across generations, they thought it would be a nice connecting point where people could come, buy records, talk about records, and connect through music. While the group has gotten to know the neighborhood regulars, they have also gotten to know each other, ultimately building a great community both upstairs and downstairs.

After graduating college, Banik was hired by a hedge fund where he worked for about 8 years. After being laid off in 2010 following the Great Recession in 2008, he took a year off which he describes as “a blessing in disguise.” Banik then dove back in and started an internet startup which also centered around events and building community which he worked on for 2 years. “It was a tough business but there was a lot I learned both in the events area and also in regard to how to run a business. It’s an eye opening experience trying to start a startup: you’re on your own and have to do every single job and learn so many things on the fly.” Many of the things he learned taught him the basis for what he does daily at RPM. Afterwards, he returned to the financial space and worked at a hedge fund for about 5 years before opening RPM. 

Still having an entrepreneurial spirit and thinking it would be a good side job, Banik signed on to the project. However, he soon found so much satisfaction and enjoyment that it became his full-time job. In regard to going into business with an older, more experienced partner, Banik said, “this was not necessarily a safer path, but definitely a smarter bet than going in blind.”

As for RPM’s eclectic decor, the majority of it is sourced from the original partner’s collection. Over 30 years, he amassed a large enough array of vintage signs, tables, and decor to furnish the entire lower level. According to Banik, he spent the better part of a year laying out the bar and themes for each private karaoke room. In one of the uniquely themed rooms, license plates from across the country lined the wall. While they started off with random ones, some have since been replaced with customers’ license plates making the space a bit of every passerby.

The most common song Banik hears is the congenial Mr. Brightside by The Killers, which is probably sung around 20 times a night. While Banik used to enjoy the song he “can’t stand it anymore.” Its upbeat and simple melody gets everyone going. While Banik himself doesn’t sing, citing tone-deafness and self-consciousness, if he really had to he would sing Total Eclipse of the Heart. By listening to most of his music at the bar, he has developed a taste for the likes of Chappelle Roan, Olivia Rodrigo, and Ariana Grande’s new album. 

While RPM doesn’t like to name drop, many well-known figures like Broadway stars, SNL cast and crew, TV actors, and pop stars have come by. Many of them enjoy the venue’s private rooms while others head straight to the bar and sing songs, creating a fun and memorable experience for everyone.

One new event Banik mentioned was a 90s versus Trap event where DJs mixed 90s and current music to create a unique sound. “A new event is always exciting because there’s so many moving pieces, and now everything is falling into place. I also want to expand into things that are not karaoke now that we have a bit more leeway and people are starting to come out after Covid again.” RPM plans to look into trivia and sports-centered events. Given the flexibility of the space, the possibilities are endless. Banik also feels it is an interesting exercise in business as they “know that all [the events] won’t succeed.” He feels it is “helpful in learning how to move on from things that don’t work out and take lessons learned.”

Banik also loves spending time with both his customers and staff and enjoys the lively, boisterous environment of RPM. “All we really want is for people to leave here having had a good time. I just want people to know they can come here, be in a safe space, and enjoy.”