Nova Scotia restaurants are still turning to crowdfunding. But is it always the best move?
When Katie Tower and the all-female ownership team behind Fawn Restaurant made the difficult decision to reach out to the public for financial support to keep their business afloat, it was a move born out of necessity. Fawn Restaurant, located on South Park Street in Halifax, N.S., opened its doors in the fall of 2022, offering modern American-style cuisine with French and Italian influences. The restaurant aimed to strike a balance between casual and fine dining, providing a unique culinary experience for its patrons.
The leap from Field Guide, a small food and cocktail bar in Halifax’s north end, to Fawn Restaurant was a significant one for the ownership team. However, by the end of 2024, the business found itself struggling to pay off debts accrued during the buildout, which ended up costing twice as much as anticipated. In a last-ditch effort to stay afloat, the owners launched a crowdfunding campaign called the “Fawn’tum Leap,” encouraging patrons to purchase gift cards to help with cash flow issues.
While the private response to the campaign was positive, with $65,000 raised from gift card purchases, the public reception was less so. Some criticized the optics of a fine-dining establishment asking for financial support in a challenging economic climate, leading to backlash on social media. Despite the support, Fawn Restaurant ultimately closed its doors for good in April, prompting further accusations of misusing funds.
Lost in the controversy, however, was the fact that the gift cards purchased for Fawn Restaurant remain valid at Field Guide, offering a silver lining for loyal customers. Katie Tower reflected on the experience, noting that it was her first encounter with the scrutiny that can come with crowdfunding initiatives, especially for businesses in the public eye.
In contrast to Fawn Restaurant’s struggles, Larry’s Sandwiches & Sides recently celebrated its grand opening on Portland Street in Dartmouth. Owner Jason McKenzie turned to crowdfunding, launching a Kickstarter campaign to fund the permanent space after successful pop-ups in 2024. The campaign exceeded its $25,000 goal, raising $27,628 from 147 backers who were offered rewards in exchange for their support.
McKenzie saw crowdfunding as a way to engage the community and gauge support before taking on additional bank loans. He emphasized the importance of offering tangible rewards and thanks to backers, ensuring they felt appreciated for their early support. Despite the risks associated with crowdfunding, McKenzie was confident in his decision and prioritized building relationships with his supporters over traditional financing options.
While crowdfunding remains relatively uncommon in Nova Scotia’s restaurant industry, Natasha Chestnut of the Restaurant Association of Nova Scotia advised small businesses to carefully consider the pros and cons before embarking on a crowdfunding campaign. While it can provide an alternative to bank loans and generate marketing buzz, there is a risk of public scrutiny and accountability if goals are not met.
As the landscape of restaurant ownership continues to evolve, Tower acknowledged the challenges faced by Fawn Restaurant and other ventures that have turned to crowdfunding for support. She highlighted the importance of standing by bold decisions and seeking help when needed, regardless of public opinion. Ultimately, the experience of Fawn Restaurant serves as a reminder of the complexities of crowdfunding in the restaurant industry and the importance of community support in times of need.
