Determinants of success of restaurant crowdfunding. (April 2019)

• Record Type: Journal Article
• Authors: Lelo de Larrea, Gabriela; Altin, Mehmet; Singh, Dipendra
• Is Part Of: International journal of hospitality management. Volume 78(2019)
• Page Start: 150
• Page End: 158
• Publication Date: 2019-04
• Subjects: Crowdfunding success -- Restaurants -- Entrepreneurship -- Community orientation -- Kickstarter; Hotel management -- Periodicals; Restaurant management -- Periodicals; Food service management -- Periodicals; Hôtels -- Gestion -- Périodiques; Restaurants -- Gestion -- Périodiques; Services alimentaires -- Gestion -- Périodiques; Food service management; Hotel management; Restaurant management; Periodicals; 647.94
• DOI: 10.1016/j.ijhm.2018.10.003
• Languages: English
• ISSNs: 0278-4319

Abstract

Highlights: Images showing elements of the restaurant concept increase crowdfunding success. Stating how the crowdfunding project benefits the local community increases success. Local funders are key drivers of restaurant crowdfunding success. Frequent communication through updates and images increases crowdfunding success. Rewards' structural characteristics are not significant predictors of success. Abstract: This study explores the determinants of restaurant crowdfunding success, inspired by success determinants found in independent restaurant literature. The results indicate that community orientation, images that show elements of the restaurant concept, and frequent communication with funders are key drivers for success. We conclude that restaurant entrepreneurs who show that their project benefits the community where they operate, provide constant updates that maintain project interest, and are responsive to funders' comments are more likely to succeed in reward-based crowdfunding.