He says restaurateurs are increasingly looking for new ways to raise capital because “more and more, banks are not willing to lend money to small businesses.”

“It’s an interesting approach,” says Brian Stanford, national managing director of PKF Consulting Canada.

“The concept of creating a bit of an elite status to get priority access or restaurant benefits has been done in New York and L.A. but it’s not something we’ve seen much of in Toronto,” he says.

“It’s probably more about marketing, and the fundraising would be secondary,” Stanford adds.

Douglas Fisher, president of food service consulting firm FHG International, sees it mainly as a gimmick that won’t have legs in the uber-competitive industry.

“I think restaurants are using crowdfunding as a last resort to finance or help finance their business. Small business loans that are guaranteed by the Canadian government are readily available for qualified restaurants to take advantage of,” he says.

“Those using fundraising are generating publicity more than raising funds, and I would be concerned that such investment is highly speculative on the part of those that contribute,” Fisher notes.

Related: How Crowdfunding Is Changing The Way Startups Raise Money

So far, the Fonda Lola crowdfunding campaign has only raised $1,525, or two per cent of its $75,000 goal on Indiegogo. One-year memberships start as low as $40. The Amigo membership, for example, costs $3,750 for equal value in restaurant credit or catering and priority reservations, plus they would receive margaritas for six during each visit that year.

Continue to the full article --> here