Case studies
Restaurants
September 4, 2025
6 min read

Why Music Licensing for Restaurants is Essential

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In today’s dining scene, background music isn’t just ambiance—it’s a business tool. But playing music in a restaurant involves legal obligations, and navigating them feels like hopping through a maze. This article clarifies what a proper music license entails, especially for venues of all sizes, ensuring owners can focus on creating atmosphere, not legal headaches.

Why Any Restaurant Needs Licensing

Copyright law protects the intellectual property of artists, songwriters, composers, and publishers. That’s where a music license for restaurant plays a legal and cultural role. Whether streaming playlists or hosting a local singer, restaurants must secure rights to avoid fines, protect artistry, and maintain goodwill. These rights are typically managed by Performing Rights Organizations (PROs).

Three Common Scenarios:

Each requires its own permission strategy, from blanket music licenses to specific event permissions.

Types of Music Licenses Explained

Licensing systems vary by country but typically follow these broad categories:

ScenarioRequired LicenseDescription
Background playlistRestaurant music licenseCovers overhead music throughout the venue.
Live performancesLive music licenseRequired when hiring a band or solo performer.
Special events or large coverageAdditional synchronization rightsNeeded for online streaming or video backing music.

Live music license cost depends on venue size and frequency—typically ranging from hundreds to thousands of USD annually.

Real-World Example: Café vs. Bistro

Take a small café that plays soft jazz from Spotify—this qualifies as a restaurant music license case. Even if it’s just streamed, royalties must be accounted for. On the other hand, a trendy bistro that hosts acoustic acts must secure a license. Its fees—like a live music license cost—are typically higher but essential for legal operation. Both venues benefit emotionally; patrons feel more at home, and staff perform better when energy flows.

Here are practical steps restaurant owners take to stay compliant:

  1. Contact a performance rights organization (PRO) like ASCAP, BMI, or SESAC.
  2. Describe venue size, type of use, and expected frequency.
  3. Select packages that bundle both streaming and live performance rights if needed.

Handling this early saves headaches down the line—nothing brings a cozy night to a halt faster than realizing the Spotify party in the backroom wasn’t cleared. Effective music licensing for restaurants ensures flexibility without legal risk.

 The Major Players: Performing Rights Organizations  

In the United States and Europe, there are three primary PROs that administer public performance licenses.

  1. ASCAP (American Society of Composers, Authors and Publishers): One of the oldest and largest PROs, ASCAP represents a vast catalog of music across all genres. 
  2. BMI (Broadcast Music, Inc.): Another major PRO, BMI also boasts an extensive collection of musical works. Many popular artists are represented by BMI. 
  3. SESAC (Society of European Stage Authors and Composers): While smaller than ASCAP and BMI, SESAC represents a significant roster of influential artists and is unique in that it is a for-profit PRO.

To ensure your restaurant is fully compliant, you will likely need licenses from all of them, as each PRO represents a different catalog of artists and compositions.

How Do Licenses Work?

Each PRO offers various music licensing for restaurants agreements. These licenses are typically annual and their cost can vary based on factors such as:

It’s crucial to contact each PRO directly to discuss your specific needs and obtain accurate quotes. Many PROs offer blanket licenses that cover their entire repertoire, meaning you pay one fee to play any music within their catalog.

With licensing sorted correctly—whether via a general music license or specific music license for restaurant needs—restaurants can let music work its magic as intended. Adding options like live acoustic nights or mood-based playlists becomes not just a possibility, but a safe, inspiring choice for business growth and guest satisfaction.


Svetlana Kavko