I am so happy that Australia has recently launched a ‘world’s first’ by combining crowdfunding with investing in the people behind restaurants and bars. Super happy!
So imagine this….
You’re a talented chef, bartender, barista, sommelier, or anyone involved in the food and beverage industry. You often dream about “When I open my own place…”. But the hard cold reality is you need to lease real estate, fit it out, pay staff and then give your life over to the chance that you’ll be a success and re-coup the funds – let alone the blood, sweat and tears.
In what could be described as a “Hospitality Fight Club” IconPark uses the fundamental rules of reward-based crowdfunding to allow people to pledge their pre-orders or other rewards for six shortlisted food and beverage concepts. The winner gets access to the fully-fitted out IconPark location in Stanley Street, a split of the net profits, loads of pre-orders for their three-month run and a lot of mentoring through the vetting process. And let’s face it – crowdfunding is just as much about marketing as about raising funds so the process builds the profile of each of the shortlisted teams!
To find out more about IconPark, watch the video below as it explains it in more depth.
IconPark launched in December 2013 to give six shortlisted food and beverage teams the chance to have the most money pledged. The winning team gained the three-month opportunity to run their concept from the IconPark headquarters in Stanley Street Sydney.
They had around 117 applications over three and a half weeks. They then had mentor panels covering design, food, building brands and restaurants. They set the shortlist teams various tasks to assess their potential networks and reach.
This is working on the crucial understanding that running a food and beverage space is not just about producing great food and drinks – although obviously that’s part of it! It’s also about reaching your potential market.
Find out more about the winners of Season 1 of IconPark – Stanley Street Merchants – here. And more importantly – get in and make a booking so you don’t miss out! Remember – it’s three months only!
The team at Stanley Street Merchants (from their Facebook Page)
What do I like about IconPark?
- This isn’t simply a matter of fundraising pledges. The pledges consisted of a mix of pre-orders for the winning concept and ‘money can’t buy’ rewards – ie your name on a bar stool (love that idea). That means that on launch there are already bookings – an assurance that any new restaurant would love to have!
- The location will already be fitted out – meaning the winners don’t need to worry about sinking those funds into their concept. And did I mention it’s rent free?! As IconPark say on their website: “The concept that receives the most support from the crowd wins the right to an approved, licensed, customisable, fitted out and ready to trade IconPark location for a three month season, fully funded!”
- The winners of each season get to take their concept with them when their three months are up – they own it. IconPark is providing the opportunity, the fitted out location, the mentoring. But everyone owns their own concept.
- By providing a three-month run only it means that the teams know this is a limited duration and can give it their all. If they do well then it will be easier to get people to invest in their concept – it’s already proven. This again is taking one of the great aspects of successful crowdfunding.
- By turning over concepts on a regular basis it keeps the excitement of the new. We’ve all heard of restaurants or bars that are the ‘latest thing’ but soon struggle in what is undoubtedly a challenging market. New teams in IconPark will bring more new people into the area.
- Crowdfunding done well is great marketing. The process of the shortlisting, the mentoring, the marketing and the excitement building up the final countdown of dollars pledged will bring each season of IconPark – and the shortlisted six teams – to the attention of a wide group of people.
IconPark Season 1 winners Stanley Street Merchants will be opening in Stanley Street Sydney at the end of April 2014. Around four to six weeks later will be the submission deadline for Season 2 so get your concept together and apply here.
It has been refreshing to find out about Icon Park and discover the people behind it have the nous and experience to make this something special and unique. This is not just a Sydney success story because the concept is perfect to rollout to other Australian cities and international locations.
You can find out more about IconPark on the website, Facebook Page, Twitter or watch videos on their YouTube channel here. This is one to watch with interest – and Australia was first to market with this idea! Well done IconPark – I love your work!
PS: An apology for the lack of blogging in 2014! For those that wanted to keep across what is happening in crowdfunding I hope you realised that I’ve still been posting on Twitter and Facebook. Please join me there, as sometimes I’m more active on those platforms!
Anna Maguire, April 2014
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