Building Block Associates

  • Home
  • Products & Solutions
    • View Supplies
    • What's In Season
    • Manage Mie Foodservice Manager
    • Foodservice Webinars
    • Become A Member
  • Online Store
  • Social Chat Blog
    • Foodservices News
  • Contact Us
  • Careers
  • Home
  • Products & Solutions
    • View Supplies
    • What's In Season
    • Manage Mie Foodservice Manager
    • Foodservice Webinars
    • Become A Member
  • Online Store
  • Social Chat Blog
    • Foodservices News
  • Contact Us
  • Careers

Can crowdfunding work for restaurants?

10/27/2015

0 Comments

 
Crowd-funding is, in the simplest terms, the act of raising money via small sums from a large group of people in exchange for rewards of varying values. It’s considered a form of alternative financing instead of the traditional methods such as bank loans. Most of the successful crowd-funding campaigns are product-based – where people support a campaign and receive an item such as a t-shirt or watch, or get a credit on a film. Even then, Kickstarter says only 37 per cent get fully funded, while those that don’t meet their goal don’t receive any funds.

Restaurants face an obvious uphill battle when it comes to crowd-sourcing: there’s no cool product to ship, and the pool of supporters are limited to the local city. (Toronto eating spots The Real Jerk and Glory Hole Doughnuts both campaigned for funds and fell short.) It’s also difficult because equity crowd-funding – money given in return for a share of the business – isn’t allowed in Canada unless the investor is accredited.

Two restaurants, one in Toronto and one in Edmonton successfully raised $40,000 and $107,000 respectively. The money raised wasn’t equity crowd-funding, it was raised by the local communities, people invested in the success of the restaurants and targeted rewards.
Now, thanks to Kickstarter, Loka Snacks owners Dave Mottershall (known on Instagram as Chef Rouge) and Ayngelina Brogan are looking forward to finalizing the transition of their pop-up into a restaurant. Mottershall has worked on the east and west coasts of Canada.

He came back to Toronto a year ago to open a restaurant in the competitive city. Brogan said it’s difficult to get a small business loan when you’re self-employed so the pair looked to crowd-funding. Brogan, who has a marketing background, said they spent a “good couple months” investigating how Kickstarter worked. This included talking to people who ran their own Kickstarter campaigns.
0 Comments



Leave a Reply.

    Go to blog
    Advertisement

    RSS Feed

    News & Updates

    Stay informed with the latest news around foodservice, agriculture and other related food news.

    Do you Enjoy our E-news & Updates?
    Get our foodservice E-news, blogs and LTO's sent to your inbox, SUBSCRIBE HERE.

    Advertisement Opportunities 
    To get your foodservice business in our daily e-news, here.

    Archives

    March 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015

    Categories

    All
    Agriculture And Food Safety
    All Day Breakfast Menu
    Beans Benefits
    Beverage Company
    Building Construction
    Candy Company
    Carbonated Drinks
    Chicken Farm
    Dairy Production
    Fast Food
    Fast Food Chains
    Food Prices
    Generation Z
    Genetically Modified Organisms
    Gluten Free
    Grocery Retailer
    Healthy Meals For Kids
    Imported Foods
    Imported Foods From Other Countries
    Liquor Licence
    Milk Industry
    Milliennials
    National Food Holidays
    Nut Allergies
    Organic & Natural
    Processed Foods
    Produce Industry
    Restaurant
    Restaurant Management
    Restaurant Ordering System
    Restaurateurs
    Seafood
    Sustainable Resources
    Sweet Snacks
    Sweet Tasting Desserts
    Tree Nuts
    Value Menu Offering
    Ways To Reduce Food Waste

    Picture
    Advertisement
    Picture
Powered by Create your own unique website with customizable templates.