I really doubt you would ever license any specific songs as a cafe business. You should be able to pay a fixed fee to a PRO and have a blanket license to play almost anything. Is it so expensive in the US, or perhaps they do not know that this is an option? If the former, and those cover artists help those bars keep their expenses low and offer you better experience while charging less—working with the system, without ripping off the original artists who still get paid their royalty—does it seem particularly parasitic?
A restaurant / cafe may pay a fixed fee and get access to a specific catalog of songs (performances). The fee depends on what the catalog contains. As you can imagine, paying for the right to only play instrumental versions of songs (no singers, no lyrics) is significantly cheaper. Or, having performances of songs by unknown people.
Two countries where I know how it works from a venue business owner perspective work this way. The fees seemed pretty mild, that’s why I asked if it’s too expensive in your country (which I guess is not US).
