The Japanese-inspired venue brings the much-loved pastime of singing karaoke to the city with private rooms for groups and a tachinomiya-style bar serving a casual street food menu and imported sake.

The past two years has been anything but smooth sailing for the venue though, with lockdowns and restrictions forcing owners Andrew Coughlan and Joel Hillier to navigate their way through the pandemic.

While hospitality venues are allowed to operate, the latest round of restrictions imposed on singing and dancing has thrown a curveball at Jam's.

Despite having private rooms which can isolate groups from other patrons, the venue has been forced to shut these down and limit trading to the bar area.

The venue's opening hours have also been reduced to weekends only as a result of the latest restrictions.

"It's really difficult for us because singing and dancing is banned but we have spent all this money on modifying our air conditioning to keep in line with health advice, and in all of the private rooms technically everyone is isolated from others as it is," Coughlan says.

"In an open pub performers are allowed to sing but group singing isn't allowed, so it is really difficult for us.

"We have been forced to close the rooms even though they are relatively safe."

The current extended restrictions are in place until the end of February, which has led Coughlan and Hellier to find ways to operate a karaoke venue minus the karaoke in order to remain open.

The bar is up-and-running every Friday and Saturday night, with an open mic live band performing on Fridays where patrons can get behind the mic and sing with the backing of the band.

The venue is also taking advantage of the NSW government's temporary approval of outdoor areas to open the courtyard at the rear of the venue which Coughlan and Hellier have created as an inviting, colourful space with mural works by several local artists, including Jordan Lucky who recently opened a gallery next door to Jam's.

The bar's street food menu is available with the addition of yakitori skewers to the menu on Saturday nights which they are cooking outside on a Japanese charcoal grill.

"We're cooking up some authentic recipes on the grill and we are giving that away with drinks so people can swing in out the back for that," Coughlan says.

"We have planted a bunch of trees and got all of the artists from the neighbourhood that came in and volunteered their time to make this space a little bit more of a hub and something special."

Jam's is in the process of gaining approval to use the outdoor space permanently in the future, with plans to work alongside neighbouring venues such as The Rogue Scholar brewery to host festivals and events.

"What we are trying to push for is to be able to allow people to free flow between The Rogue Scholar, who have their rooftop bar as well, and our back courtyard so that we can have block parties and things like that," Coughlan says.

"The gallery is going to run a lot of functions, so it all works really well.

"If we can get through all of the planning it will continue to grow and become a unique place for Newcastle where people can appreciate public art and enjoy themselves at the same time."

Jam's is a labour of love for Hillier and Coughlan.

The two friends, who both work full-time jobs outside of Jam's, spent 12 months overhauling the space on Union Street that previously operated as a gym.

The pair spared no attention to detail with the fit out, installing eight private rooms with karaoke machines imported from Japan and touch screens that allow food and drinks to be ordered directly to the room.

The bar serves a range of sake, whiskey, gin and Japanese-inspired cocktails and street food including karaage chicken, takoyaki (octopus balls), gyoza and edamame.

Next month they will launch a umeshu (plum wine) beer in collaboration with The Rogue Scholar.