If they play the radio in the shop, then they're technically supposed to have a license. It'll probably be $500 for the year. You can run an estimate yourself:
https://www.ascap.com/
(A trick to consider is that if they have an ASCAP license, they will probably need a BMI license as well. Each one covers separate libraries.
https://www.bmi.com/)
Nickie makes a good point about the "extra biz they bring in should cover it." My two cents is that if you organize the club, you should encourage your members to actually buy stuff. And then enforce it. I've been a lot of clubs with "self-sufficient" members who smuggle in food and drink. Bottled water, mostly. The venues didn't see a dime, and problems ensued.
Depends on size of shop and other factors in regard to playing radio. My biz ran into this problem but we are not an eaterie or club. I def think artists should get paid but punishing little tiny yoga studios and non-chain massage places is not where the money is. We now play no music except music we have permission for and let clients bring their own ipods. When i used the ASCAP calculator, the price was at least $2K unless i am using it wrong which is possible. But i digress! Here is what national restaurant guidelines says about radio:
(What are the exemptions for radio and TV?
Federal copyright law, Section 110 (5)(B), exempts restaurants that play music transmitted via radio, TV and cable and satellite sources if they don’t charge to hear the music. Music played by other means, such as live bands, CDs, etc., aren’t covered by the exemption.
The exemption applies to establishments smaller than 3,750 gross square feet in their premises. It also applies to those with 3,750 square feet or more of gross square footage if the operation has no more than four televisions. “Gross square footage” includes all interior and exterior space used to serve customers, including kitchen space, bathroom and storage space, but excludes the parking lot (unless used for something other than parking).
Any foodservice or drinking establishment that is 3,750 square feet or larger, must secure public performance rights for TVs or radios if any of the following conditions apply:
For TV, if the business is using any of the following:
more than four TVs; or
more than one TV in any one room; or
if any of the TVs used has a diagonal screen size greater than 55 inches; or
if any audio portion of the audiovisual performance is communicated by means of more than six loudspeakers, or four loudspeakers in any one room or adjoining outdoor space; or
if there is any cover charge.
For radio, if the business is using any of the following:
more than six loudspeakers; or
more than four loudspeakers in any one room or adjoining outdoor space; or
if there is any cover charge; or
music on hold.)