Whether you are an aspiring restauranteur or an existing restaurant owner looking to expand your business, crowdfunding has the recipe for success.

Crowdfunding refers to funding a project or venture by raising small amounts of money from a large number of people, typically through a platform like Kickstarter or Indiegogo.

In recent years, crowdfunding has revolutionized how entrepreneurs and small business owners raise capital for their ventures.

So, it’s no surprise that crowdfunding has emerged as a powerful tool for restaurant owners and chefs to raise funds for their new or existing businesses.

Best of all, you can build a community of backers who want to see your business succeed along the way.

Crowdfunding is a powerful tool that restaurant owners can use to connect with customers and build a loyal following, an essential ingredient in the highly competitive restaurant industry.

Thankfully there are several crowdfunding websites available for restauranteurs to choose from, each with its own unique features and benefits, including Kickstarter, Indiegogo, GoFundMe, Patreon, and Fundable.

In this article, we’ll take a deep dive into each of these crowdfunding platforms, review some of the factors to consider when choosing a crowdfunding site for your restaurant, and offer up a menu of stories about some of the most successful crowdfunding campaigns for restaurants.

With this information, you should be able to determine which restaurant crowdfunding platform is right for you.

Factors to Consider When Choosing a Crowdfunding Site for Your Restaurant

With so many crowdfunding platforms available, choosing the right one can be pretty overwhelming.

Here are six factors you should consider when choosing a crowdfunding site for your restaurant.

1. Fees

Different crowdfunding sites have varying fee structures.

While some sites charge a percentage of the total amount raised, others charge a fixed fee.

Comparing fees and considering their impact on your fundraising goals is important.

Be sure to take into account all of the fees and costs associated with your campaign, such as payment processing costs.

2. Target Audience

Each crowdfunding site has its unique audience, and choosing a platform that caters to your restaurant’s target audience will be crucial to your success.

For example, some crowdfunding sites and food-related businesses, while others cater to tech ideas or board games.

Understanding your target audience can help you choose a platform that will resonate with them.

3. Payment Options

Like fee structures, different crowdfunding platforms offer various payment options, such as credit cards, Stripe, and bank transfers.

You’ll want to choose a platform that supports convenient payment options for your supporters.

Here’s something else to consider regarding payment options: The time it takes for the platform to process payments.

Why?

Because this can impact your fundraising timeline, and timing is everything in the restaurant industry.

4. Project Duration

Speaking of timing, crowdfunding sites have varying project duration periods, ranging from a few days to a couple of months.

Choosing a crowdfunding platform that allows you to set a project duration that aligns with your fundraising goals will be clutch.

You’ll also want to consider the impact of the project duration on your fundraising momentum.

5. Fundraising Goals

You’ll want to choose a platform that allows you to set realistic fundraising goals that align with the financial needs of your restaurant.

You should also consider the impact of the fundraising goal on your fundraising momentum and how it will impact the campaign’s overall success. Some sites like Kickstarter require you to meet your goals in order to keep the money raised while others like Indiegogo allow you to keep the money you’ve raised regardless of whether you met your goal.

6. Credibility

The credibility of the crowdfunding site you choose is critical to the success of your campaign.

Research the platform’s history, reviews, and success rates to ensure that it has a proven track record of supporting successful crowdfunding campaigns.

A credible crowdfunding platform will provide you with a secure platform to raise funds and help build trust and confidence in your supporters and will also provide you with a bigger audience to present your project to.

Top Crowdfunding Sites for Restaurants

Now that we’ve outlined the six factors you should consider when choosing the right crowdfunding site let’s take a look at our personal choice for the top five crowdfunding platforms for restaurants:

1. Kickstarter

Kickstarter is the most popular crowdfunding site.

It is known for its all-or-nothing funding model, where projects must reach their fundraising goals before receiving money.

Kickstarter charges a 5% fee on the total amount raised, and payment processing fees between 3-5%.

Kickstarter is an excellent choice for restaurants that have a well-defined project and a clear goal. It is also ideal for those who want to offer creative rewards to their supporters.

The platform has a vast community of backers interested in supporting innovative and unique projects, which is why it is our top choice among the best crowdfunding sites for restaurants.

2. Indiegogo

Indiegogo is the second most popular crowdfunding platform.

It offers a flexible funding model, where projects can keep the funds raised, even if they do not reach their fundraising goals.

Like Kickstarter, Indiegogo also charges a 5% fee on the total amount raised, and similar payment processing fees also apply.

Indiegogo is ideal for those that want to test the market and gauge interest in their project before launching it fully, with a risk-free system that allows you to keep the money you raised regardless of whether you reach your goal.

3. GoFundMe

GoFundMe has become a somewhat popular crowdfunding site for restaurants that want to raise funds for various reasons, such as supporting their employees, covering operational costs, or launching a new product.

GoFundMe charges a 2.9% fee plus $0.30 per donation, and payment processing fees apply.

GoFundMe allows restaurants to raise funds quickly and efficiently, and it is an excellent platform for restaurants that want to rally their community around a specific cause or issue.

4. Patreon

Patreon is a unique crowdfunding platform.

It allows restaurants to offer exclusive content and benefits to their supporters, such as access to secret menus or private dining experiences.

Patreon charges a 5% fee on the total amount raised, and payment processing fees apply.

Patreon is a platform ideal for those who want to build a hyper-loyal and hyper-engaged community of supporters.

With Patreon, restaurants can offer creative rewards and benefits to their most dedicated supporters.

5. Fundable

Fundable is a crowdfunding platform that offers both equity and rewards-based funding options.

It charges a 3.5% fee on the total amount raised, and payment processing fees apply.

Fundable is the platform most often used by restaurants looking to raise capital for long-term growth and expansion.

It is an excellent platform for restaurants that want to offer equity to their supporters in exchange for funding.

Restaurant Crowdfunding Success Stories

By now, you’re probably rolling your eyes at our excessive food and restaurant wordplay, but we really need to address dessert.

Today’s special?

Pudding, because that’s where the proof is.

Too much?

Well, you have to admit, the following success stories do underscore the power of crowdfunding for restaurants.

1. Superior Motors

Superior Motors is a restaurant in Braddock, Pennsylvania, that aims to provide high-quality food at affordable prices.

In 2014, chef Kevin Sousa launched a Kickstarter campaign to raise $250,000 to transform a vacant car dealership into a restaurant.

The campaign was hugely successful, and Sousa raised over $310,000 from over 3,000 backers.

With the funding, Sousa built a state-of-the-art kitchen, a bar, and a dining room with a capacity of 70 people.

Superior Motors opened in 2017 and has since received critical acclaim for its innovative dishes and commitment to sustainability.

2. Torst

Photo Courtesy of Torst Bar

Torst is a beer bar and restaurant in Brooklyn, New York, that offers a selection of craft beers from around the world.

In 2013, founder Jeppe Jarnit-Bjergsø launched a Kickstarter campaign to raise $75,000 to help fund the opening of Torst.

The campaign was a huge success, with over 1,000 backers pledging over $116,000 to support the project.

With the additional funding, Jarnit-Bjergsø created a space that combined Scandinavian design with a cozy and inviting atmosphere.

Torst opened its doors in 2013 and quickly became a destination for beer lovers worldwide.

Today, Torst continues to thrive and has been recognized as one of the best beer bars in the United States.

3. Locol

Locol is a fast-food chain that aims to provide healthy and affordable meals to people in underserved communities.

In 2016, founders Roy Choi and Daniel Patterson launched a Kickstarter campaign to raise $150,000 to help fund the opening of their first location in Watts, Los Angeles.

The campaign was a massive success, with over 2,000 backers pledging over $175,000 to support the project.

Choi and Patterson used the funding to create a restaurant that offered the community high-quality food at affordable prices.

Locol opened in 2016 and quickly became a beloved fixture in Watts.

Today, the chain has expanded to other locations throughout California and continues to be a leader in the fast-food industry.

What are the Best Crowdfunding Sites for Restaurants?

When choosing the best crowdfunding site for your next restaurant project, Kickstarter, Indiegogo, GoFundMe, Patreon, and Fundable, all have unique features and benefits and are among the best crowdfunding platforms in the industry.

Each restaurant featured in the success stories outlined above found its success through Kickstarter, which earned the top spot in our list of the top five best crowdfunding sites for restaurants.

By considering your restaurant’s specific needs and goals, only you can decide which platform is right for you.

However, one thing is certain; With the right platform and strategy, crowdfunding is an effective way to raise capital for your restaurant and achieve your business goals.