5 Things to Consider When Using Background Music

Background music plays a vital role in enhancing the atmosphere of hospitality establishments such as hotels and restaurants. Playing the right music is especially important for restaurants, as it helps create a welcoming environment that encourages customers to linger and return.

In fact, restaurant revenue statistics indicate that the presence of music can improve sales by as much as 9.1%! Further, a recent study revealed music was the second most important feature when choosing a restaurant.

However, playing music in a public, commercial setting comes with a host of technical obstacles and legal obligations. Using a consumer-level sound system or media player, or simply streaming music from a consumer app like Pandora or YouTube, can lead to a poor customer experience or even legal trouble. This is because consumer music streaming services lack the proper authorization for playing music in a business setting.

In this article, we'll explore five technical and legal considerations to keep in mind when playing background music in your restaurant.

1. Consumer-Level Sound Systems Are Not Suitable for Most Restaurants

Audiophiles may disagree, but smaller cafes and restaurants can probably get by with a consumer-level sound system. Most leading providers offer systems that are flexible and scalable enough to adequately provide music throughout your business. Simply purchase additional speakers as needed and place them around the space.

However, if the restaurant occupies a large open floor plan or is spread across multiple rooms, a sound system designed for consumer use will not provide consistent sound quality across the space. Even if the system offers a choice between wall-mounted, in-ceiling, and stand-alone units, these speakers are designed for homes and will have technical limitations in a restaurant.

Poor sound quality, or volume that’s too high in areas close to the speakers, can make diners uncomfortable and discourage them from staying longer to order more drinks and desserts. You don’t want diners to finish their meal and get after-dinner cocktails somewhere else.

Investing in a commercial grade sound system will help ensure guests have an enjoyable meal in your restaurant and want to return.

2. You Need a User-Friendly App with Commercial-Grade Features

Dealing with apps will be unavoidable, whether it’s your sound system provider’s media player or the proprietary app for whichever commercial music streaming service you choose.

For legal reasons, you can’t simply stream your personal Spotify playlist in your restaurant – we’ll discuss that in more depth later in this article. Additionally, music services designed for consumer use can ruin a restaurant’s ambiance. For example, with some subscriptions, ads can interrupt the flow of the playlist, clicking the “thumbs down” icon causes the track to skip mid-song, and songs with inappropriate lyrics can sneak into the soundscape.

Further, some consumer subscriptions don’t allow you to play the songs you want, when you want – and even fewer commercial music streaming services offer this functionality, so consider this when making your selection.

When choosing a music service licensed for streaming in a commercial environment, it’s important to ensure the interface is user-friendly and allows easy access to commercial-level features such as consistent volume control, audio messaging, an explicit lyrics filter, and intuitive management of multiple rooms or zones.

For example, a hotel with a consolidated audio system may play one style of music in the restaurant’s main dining area, while other areas of the building such as the bar, lobby, pool, and elevators play different styles of music. In business music streaming, different rooms are called zones, whether the business plays different music in each one or the same music across the entire business premises. Most subscription services will charge additional fees for every additional zone.

In the fast-paced restaurant world, owners and managers need to be able to delegate music control to other staff members with varying degrees of technical know-how. All workers need to be able to change the volume, schedule different playlists, and handle other details without breaking the pace of their other duties.

3. Your Streaming Service and Sound System Must Work Well Together

Connectivity and integration issues can annoy customers, frustrate employees, and prevent you from getting all the benefits of streaming music in your restaurant. It’s essential that your music streaming app and sound system are able to “see each other,” connect easily, and stay connected.

Likewise, it should be easy to reconnect if something goes wrong, control different playlists playing simultaneously in different zones, and remove inactive zones.

It’s important that there are no playback issues. The app should be able to interpret your commands and recognize media without malfunctioning or giving confusing error messages. All error messages should be clear and solutions should be intuitive.

Playlist scheduling, shuffle, and playing tracks in linear order should be easy and error-free.

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4. You Need the Right Licenses

Here’s where we get into the technical legal considerations. The world of intellectual property and copyright infringement can be confusing, but one of the most important things to ensure when playing music in your restaurant is that you’ve secured the appropriate licenses.

Unauthorized use of music in your restaurant, whether intentional or accidental, can lead to serious legal and financial repercussions. Copyright infringement fines can range from hundreds to tens of thousands of dollars per infringement, depending on the severity of the violation.

When music is played in a public place, such as a restaurant, it’s considered a public performance, and you must obtain permission from the copyright holders in the form of public performance licenses. This is typically managed through various performance rights organizations (PROs) such as The American Society of Composers, Authors, and Publishers (ASCAP), Broadcast Music, Inc. (BMI), the Society of European Stage Authors and Composers (SESAC), and GMR (Global Music Rights) in the United States.

These organizations issue public performance licenses that grant businesses the right to play music from their extensive digital catalogs. Without these licenses, your restaurant could face legal action and hefty fines, as these PROs actively monitor and enforce copyright laws to protect the interests of artists and songwriters.

Hosting live music in your restaurant introduces additional legal considerations. The responsibility for obtaining the proper licenses typically falls on the venue, not the performers. This means that even if a band claims they have the right to perform certain songs, you are still required to have the appropriate licenses from the relevant PROs.

Obtaining the proper licenses ensures that the creators of the music you play are fairly compensated for their work. Additionally, it shields your restaurant from potential legal liabilities. Failure to secure the necessary licenses can result in fines that could severely impact your business.

Restaurants typically require a blanket license, which allows them to play music from a PRO's entire catalog. This is because the PROs represent songwriters, and some songs have multiple writers. So if you intend to play music from multiple catalogs, you may need multiple licenses. Additionally, if your restaurant plays music videos or uses music in conjunction with digital menus or marketing materials, a synchronization license might be required.

Alternatively, you can opt for a commercial music service that has already negotiated these licenses, often making it more cost-effective and simpler than securing them independently.

5. Restrictions on Personal Streaming Services

While streaming services like Spotify, Apple Music, and YouTube are popular for personal use, they are not licensed for commercial environments like restaurants. As we mentioned earlier, using these personal accounts to play music in your restaurant violates the terms of service and can lead to the suspension of your account or even legal action.

Most streaming services have clear terms that prohibit the use of personal accounts in commercial settings. For instance, if you use your personal Spotify account to provide background music in your restaurant, you are likely in violation of the service’s terms, which could result in penalties or service disruption.

Instead of relying on personal accounts, the simplest way to get licensed music is to subscribe to a music service specifically designed for commercial use. These services are tailored for business environments and include the necessary licenses to legally play music in a public setting, ensuring that your restaurant remains compliant with copyright laws. It’s often even less expensive to go through these services than it is to obtain the licenses directly from the PROs.

If you choose to go an alternate route and play music from the radio instead, there are still legal limitations. Radio stations may have their own agreements with PROs, but these typically cover the broadcast itself and not the public performance in a commercial setting. However, there are some exceptions under the Fairness in Music Licensing Act, which exempts certain small businesses from needing additional licenses if they meet specific criteria related to the size of the establishment and the number of speakers used.

To determine if your restaurant qualifies for an exemption, you'll need to assess the size of your establishment and the specifics of your audio setup. If your restaurant is less than 3,750 square feet and has a limited number of speakers, you may not need an additional license. However, it’s always best to consult with a PRO or a legal expert to confirm your obligations.

Incorporating background music into your restaurant can greatly enhance the dining experience, but it comes with a set of technological obstacles and legal responsibilities. By ensuring you have the right sound system, music streaming app and any necessary hardware, and good integration and connectivity is key.

Further, by securing the appropriate licenses and using reputable music services designed for commercial use, you can protect your restaurant from legal issues while supporting the artists and creators whose work contributes to your establishment's ambiance.

About the Author

Nicholas Rubright is a business owner and an expert content writer for Soundtrack. He’s passionate about music and business and loves helping business and restaurant owners utilize high-quality sound and music to maximize their success