Entrepreneurs seek crowd funding for Perth restaurant in Australian first

PHOTO: Daniel Sterpini, Sasha Verheggen and Andrew Bennett on Lucky Chan's site in Northbridge.(ABC News: Charlotte Hamlyn)

Entrepreneurs in Perth are turning to crowd funding on the internet to set up a noodle bar in Perth's CBD in exchange for donors' names on the wall or dinner for their guests.

The internet phenomenon of crowd funding, where companies or individuals ask for money to kick start products, has been creating new opportunities for capital-starved businesses.

Now in Perth, it is being used to secure prime real estate in Northbridge for Australia's first permanent crowd-funded restaurant, provided it gets the backing.

The team behind the Lucky Chan noodle bar is relying on the Perth public to raise $100,000 to open the restaurant on William Street.

Part-owner Andrew Bennett said in return for a financial contribution, members of the public would get anything from their name on the wall of the restaurant to dinner for 150 guests, depending on how much they contribute.

"People who are passionate, legitimately passionate about seeing Perth grow, and the food and beverage scene, can get involved in literally the bricks and mortar of new ventures," he said.

"The crowd funding is absolutely pivotal to us recognising our goals and aspirations.

"It's the launching pad for making this project a reality."

Mr Bennett and his business partners all have backgrounds in hospitality and know the challenges of starting a new venture.

He said crowd funding was not only an opportunity to source dollars, but it created public support for the project and a wave of hype.

"We saw it as an opportunity to be Australia's first and also a Perth first; to get people involved, not only from a financial point of view, but to get their thoughts on what they want to see behind the bar, in the kitchen and in the space physically," he said.

"We wanted to tap into their expectations."

Crowd funding secures office space

US crowd funding site Kickstarter raised $145 million last year, harnessed mostly by artists, filmmakers and software developers.

It is relatively new to the hospitality industry but it is not just foodies cashing in on the crowd-funding craze.

A shared office space on St George's Terrace in the city was recently secured using crowd funding, attracting donations from members of the public and large national companies.

Desks are then rented out to people who are happy to work alongside fellow entrepreneurs.

The founder and CEO of not-for-profit group Spacecubed, Brodie Mcculloch, said he raised $50,000 in 30 days in order to open the space.

"It allowed us to pre-market the space," he said.

"It's actually a really honest and good way to test your idea on the market before you've actually spent a bunch of money developing it and setting it up."

Mr McCulloch said he was looking forward to taking the concept even further in the future.

"In the UK there's equity based crowd funding where I could put up 10 per cent of my business and sell shares through a crowd-funding platform," he said.

"That's not legal in Australia yet but when it does happen, that's a great way to get investment into a company."

The catch with traditional crowd funding is if the target is not reached, the business does not receive any of the pledges.

Lucky Chan's restaurant will know its fate when its crowd-funding campaign closes in mid-November.

Source : ABC News:    October 29th, 2014   Charlotte Hamlyn