Café culture is more rooted in Bulgaria of course than it is in China but the Sculpting in Time chain in Beijing have done this kind of deal with Modern Sky records and it seemed to work really well: the label's CDs are displayed prominently near the till in Sculpting in Time stores.
Starbucks raised eyebrows when it did a distribution deal with artists including Paul McCarthy. That deal in retrospect makes perfect sense. Coffee culture is taking off in China and since the country seems to love the chain-store approach to everything – hence the success of Starbucks, KFC et al for whom China is the number 1 growth market – it would seem logical to distribute CDs through chains like Blenz, Pacific Coffee, homegrown brand UBC, and Starbucks. So what's holding the deals back?
PutoMayo in Onda, a cafe in Sofia
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2007 - REM live in the Olympia, by Michael O'Hara. Possibly the definitive review of any of REM's performances during their 2007 Olympia residency. Even the official REM website linked to it.