20.1 Introduction
As a restaurant manager, you must understand that there are a number of legal regulations that you should comply with, and one of these is entertainment. Any restaurant that plays music or has televisions for the use of customers must apply for and pay for a licence. A restaurant requires a licence, and in most cases two licences, if you are playing recorded music in public. It does not matter if it is a CD, a radio or recorded music, if you are playing it on your businesses premises, a licence is required. This module covers these licences, how to apply for the licences and what the consequences are for not having the licences in place.
20.2 PPL and PRS for Music
PRS (Performing Right Society) for Music is one of the UK licensing agencies, and the other licensing agency is PPL, or Phonographic Performance Ltd.
Why two? Because both of these organisations represent different rightholders and have differentterms, licences, and conditions.
Both organisations offer their customers an efficient, easy and transparent experience when obtaining a music licence. PPL primarily collects and distributes money on behalf of the record companies and performers. PRS for Music collects and distributes the money for the use of lyrics and musical composition on behalf of the songwriters, authors, publishers, and composers.
The law protects the music rights in several ways, which means that restaurant managers who play recorded music in their business usually require both licences. If you play music in public without the appropriate licences, you are committing copyright infringement, which has consequences. The cost of these licences will vary based on a number of factors including the type of business, the size and how you use the music.
20.3 Music Licensing Law
The main law in the UK that requires businesses to purchase a licence for recorded music is the Copyright, Designs and Patents Act 1988.
This law covers all music that is played in public, and every play of each recording requirespermission of the copyright's owner, which is usually the record company. If organisations such,such as PPL and PRS for Music, did not exist, restaurant managers would be required to contact asmany as thousands of record companies across the globe in order to obtain permission to playrecorded music.
Record companies fortunately transfer the rights to recorded music to these organisations, which in turn, allows PPL and PRS for Music to give the licences to businesses. When this is done, theperformers, writers, and others will still get paid for their work.
20.4 What If You Do Not Get a Licence?
When a restaurant requires a PPL or PRS for Music licence, but does not obtain one, they are infringing copyright and can face legal repercussions.
Fines are usually in order, and if they are not paid, legal proceedings may occur. A court may order the business to not only pay the outstanding fees for licensing, but also the legal costs for PPL and/or PRS for Music, and will issue a court order to stop the restaurant from playing any recorded music.
20.5 The Cost of a Licence
There are a number of factors that go into the cost of a licence, but many restaurants can pay anywhere from £140 to £350 a year for each licence.
Different types of entertainment have different costs, however.
For instance, if you add music videos, your costs would range from £300 to £400 each year. There are also additional fees for different types of uses. For example, if you play music in staff areas, you must pay a fee. If you play music on your telephone hold system, you may have to pay a fee. You also might have to pay a fee when holding a special event.
20.6 Licensing for Live Entertainment
If you choose to have live entertainment for your restaurant, there are different requirements, and you may not require a licence at all.
Whether or not you do depends on several factors.
A licence is not required if live music:
It occurs between the hours of 8am and 11pm
It occurs at a location that has an alcohol licence
It occurs for an audience of less than 500 people
Your restaurant must meet all of these requirements to remain exempt for live entertainment licensing. Additionally, you do not need a live music licence in the following situations:
To put on live music without an amplifier between the times of 8am and 11pmM
To put on live music with an amplifier between the same hours, as long as the audience is fewer than 500 people.
In all other situations, a licence is likely, but keep in mind, you can choose a licence that covers all types of entertainment and the sale of alcohol.
20.7 Restaurant Entertainment and Music Licensing Situations
Many restaurant managers have similar questions about music licensing in their restaurant, so it can be helpful to look at some of these questions in order to apply them to
your own circumstances.
Playing Your Owned CDs or MP3s
Many restaurant managers own their own CDs or downloads, which have been purchased, and wonder why they have to buy a new licence to play music they already own. Per UK law, however, buying these CDs and MP3s only give you the right to play the music in a domestic setting for personal enjoyment, not for others. You can certainly play a CD or MP3 that you own in public, but you will still have to purchase the licence.
TV Licences and Music Licences
Depending on the type of restaurant you have, you may wish to have music and television both playing in the business. You will require a TV licence, which is available through a similar organisation to PPL and PRS for Music, but this does not give you permission to use any recorded music. Additionally, if you play television channels that has recorded music, you must also have a PPL and PRS for Music licensing in place. This includes any programmes that play music.
Circumstances Where You do NOT Require Licensing
There may be some circumstances where you do not require a PPL or PRS for Music license.
If you are unsure if you fit into the following circumstances, you should contact these organisations. A licence may not be required when a restaurant does not play recorded music or when it is played at private events. If live music is played, a license may not be required in some cases, but it is always best to check. A licence is not required if the music played in the restaurant is not owned by members of PPL or PRS for Music. These are recordings that do not have a copyright, have an expired copyright or personal music, i.e. your own band and recording.
Playing Music for Staff Only
You also may wonder if you have to pay for licensing if only playing music for your staff and not your customers. You do have to pay for this as it is considered 'playing in public.' You may believe that your restaurant's kitchen is not public, but the law is clear: 'public' is any place that is not a domestic setting, even if it is not a public place or somewhere that the public does not have access to, such as your restaurant's kitchen.The only exception to this is for home offices, which would not apply to a restaurant, and for lone workers. For example, imagine that you are working late, the restaurant is closed and you areworking on your books. No other member of staff is present. In this case, you can listen to music andnot pay a licence in most cases, but again, it is best to contact the PPL and PRS for Music for more information.
20.8 Playing the Right Music in Your Restaurant
Now that you know about music licensing, you should think about what type of music you should have in your restaurant.
First, you should think about the function of the music. Some possible functions include to enhance or accompany the food, to create atmosphere and ambiance, to influence food choice and to make people eat faster, which ultimately increases turnover.
When you think about this, you can see how different types of restaurants play difference types of music, and in some cases, music isn't appropriate at all.
Discreet Instrumental Music
If you manage a fine restaurant, you should only play discreet music that is instrumental. You also should make sure that you are choosing music that enhances and accompanies the food instead of distracting customers from their conversations. There is a lot of evidence that shows music can strongly influence a diner's perception of wine and food.
For instance, research was done at the University of Oxford's Crossmodal Research Laboratory, and it shows that people associate flutes, high notes and the tinkling sounds of a piano with sweet tasting foods, and resonant, deep notes with bitterness.
However, you also may believe that your food is fine enough to stand on its own. If this is the case, the music may do an injustice to the food, and vice versa.
Fast, Loud Music
You also might wonder about fast or loud music, as many restaurants choose to feature this type of music for diners. One of the main reasons restaurants do this is that they are urging their patrons to eat more quickly, which will bring in more profit as you get more customer turn around. However,there is a caveat here, as loud, fast music is also known to suppress the appetite, which means less food and drink is consumed per person.
Appetite is a part of the parasympathetic nervous system, and when a person hears fast, loud music it may trigger the 'fight-or-flight' response. This is the body's way to ensure that a person will not feel hungry in a frightening situation, such as being chased by a wild animal.
20.9 Music Might Distract From Food and Conversation
Volume is also an issue when it comes to music in a restaurant, and if it is too loud it can distract from the wine and food in addition to the mood, conversations, emotions and thoughts that your customers may have.
This can ruin the dining experience for many people, as most go out to dinner for both the food and the conversation. Any music that is so loud that it causes a person to strain their voice is much too loud for dining. Additionally, since the volume of the music is dependent on the number of people in the restaurant, you should make sure that you are keeping track of this and turn it up and down as necessary.
Additionally, you may want to think twice about choosing music that has lyrics, especially if it is a bit loud. In this case, it is entirely possible that the music you choose can impose the singer's emotions and thoughts upon a diner whilst they are eating. These emotions may be negative, which is the last thing you want your customers to hear.
On the flip side, there are people out there who do not talk to others at a restaurant, as well as solo diners. For these people, music at a restaurant is important as it can give them comfort and relieve the pressure of having to make a conversation.
As there are varying opinions of restaurant music, it can work well to have both a silent area or room as well as an area with music. This allows you to give your customers a choice of where they sit, which will also help you deliver a high level of customer service.
20.10 The Cold, Hard Facts About Restaurant Music
Yes, it is true that you have to pay to play music in your restaurant in almost every situation, but there are also many benefits as you have seen throughout this module.
The best way to see these benefits is to look at the research. Various organisations throughout the UK have performed studies on music in restaurants, and the results are good for those who choose to invest in a music licence.
According to these studies, approximately 84 percent of people like hearing music in a restaurant and believe that it helps to create a good atmosphere. Additionally, about 57 percent of people surveyed stated that the music the restaurant plays has an influence on their choice of restaurant. When restaurant managers were asked, about 1/3 of them say they would rather lose an entire day's trade than have to stop playing music in their business, and almost half of restaurant managers state
that the music they play is part of the restaurant's identity.
Module Summary
Music is an important part of any restaurant, but to get the most out of it, you must ensure that you are using it and obtaining it legally. There are heavy fines for those who do not have the proper licences, and random inspections of restaurants that play music are common. If you choose to play music in your restaurant, there are many benefits, just make sure that you do not overwhelm your customers.
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