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Crowdfunding, despite being all but unheard of half a dozen or so years ago, is proving a huge source of finance for hospitality operators able to inspire their guests to invest.
One crowdfunding platform, Crowdcube , released the names of their 10 biggest fundraisers over the past year. Two hospitality operators, Chilango and Brewdog , made the list, having raised £3.4m and £2.4m respectively. Crowdcube reports that investments were up generally across all sectors, with the average amount raised by businesses increasing 40% over the past 12 months.
Across other crowdfunding investment platforms, the hospitality sector is reporting similar success. On Seedrs , M Restaurants sought £1.5m to launch their M SOCIAL concept around Greater London locations, and raised the first £1.3m in just 24 hours. On Kickstarter , fans of chef Gary Usher’s first restaurant, Sticky Walnut, have twice helped him raise the funds necessary to launch new restaurant ventures. Grind successfully crowdfunded enough to open 4 sites and a coffee roastery.
Good guest experience management has always been about encouraging guests to support your business, though typically that support has come in exchange for a meal, drink, or bed for the night. However, as crowdfunding gains credibility as a legitimate way to bankroll a business, guests can more directly support hospitality operators they believe in. For example, a £100,000 crowdfunding initiative in Brighton saw a beloved local pub reopened, after seeing off a bid from a fast food franchisee. Crowdfunding has proven that if you offer guests something they can invest in emotionally, they’ll invest money as well.
Hospitality operators are facing increased expenses in all quarters- rising wages , growing property costs , and price hikes in supplies and produce , and more. With many operators having little choice but to pass on some of these costs to the guests, it’s nice to be reminded that for a good hospitality experience, guests are happy to invest.
