Demon Pops Up From Between Woman's Legs in Diner

by Bob
(Saskatoon)

I saw a late 90's or early 2000's movie where the main characters are trapped in a weird diner filled with demons that look like normal people, but I can't remember the title.

At one point, someone drops something and tries to look up this woman's skirt, but a demon face comes out from between her legs instead.

There's a side plot about a man in cowboy getup who is tracking them down, and in one scene someone tells him he can't smoke in a building.

I thought I remembered it was called Legion of the Dead, but can't find it anywhere. Any help would be appreciated.