In the absence of reliable governmental support for small businesses facing the consequences of natural disasters, GoFundMe has emerged as a common response to crises such as Hurricane Helene, with more than 80 Asheville area restaurants creating campaigns within days of the storm. But with some campaigners characterizing their efforts as “a knee-jerk reaction” to survivor’s guilt, it appears the online calls for help may do more for feelings than finances.
That’s not a condemnation of the popular platform. Crowdfunding researcher Gabriela Lelo de Larrea says GoFundMe campaigns can set up restaurants for recovery, even if they fall short of their monetary goals.
“It’s a great way to practice creative ways to bounce back from a crisis,” said Lelo de Larrea, an assistant professor at Florida Gulf Coast University’s School of Resort and Hospitality Management. “Making sure you’re aware of all the resources you have at your disposal, [including] your own patrons, is important.”
While Lelo de Larrea hasn’t studied GoFundMe, she and her colleagues have scrutinized Kickstarter, a platform for new ventures seeking backers. She suspects much of what works in that context can be applied to solicitations for troubled restaurants, such as the number of words and images associated with the best-performing campaigns.
Their 2022 paper, “Cues that Work: Designing the Optimal Restaurant Crowdfunding Campaign in the U.S.,” reports the “sweet spot” is 681 words, 13 photographs, and two videos.
“We understand it’s not easy to create a good video, but it’s really powerful,” Lelo de Larrea said. “That is an opportunity.”
More significantly, Lelo de Larrea and her fellow scholars found that the most successful campaigns emphasize the business’ contribution to its hometown. “These campaigns highlight how this project is beyond them succeeding as a company: Maybe they’re instrumental in [giving patrons] a sense of community,” Lelo de Larrea said.
For example, instead of stressing that laid-off restaurant workers are worried about paying rent, a model campaign might focus on why the company wants to keep creating jobs.
Of course, few western North Carolina restaurateurs had the luxury of researching best practices before issuing their appeals. In his campaign for Posana, a downtown Asheville restaurant that specializes in gluten-free cuisine, general manager Jesus Zafiro used 132 words, no photographs, and no videos to convey the seriousness of the situation for Posana employees.
His message began, “The aftermath of Hurricane Helene in Asheville has been profound and we would like to thank everyone who has reached out to share their sentiments with us at Posana. Each message is a reminder of why we do what we do in this beautiful city we call home.”
“I have a lot of hourly paid employees that their life source is the income that they get from the restaurant,” Zafiro said in an interview. “The majority of our [front-of-house] staff depends on that October income to get through the off-season.”
Zafiro initially promoted his “Support Posana Staff” GoFundMe campaign on his personal Facebook page with a goal of $3,000, which he reached within two days. Then, he upped the goal to $20,000 and asked the owners of Posana if he could share it on the business accounts. Within 10 days, the GoFundMe had raised more than $9,000.
The Market Place, another downtown Asheville restaurant, quickly laid off 29 staff members after Helene to allow them to pursue unemployment benefits. Owner William Dissen kept a couple of staff members on payroll, including general manager Kate Edge.
“The survivor’s guilt was so real,” said Edge. “I still have my job, but yet 29 people that are like my family and I love them, they have nothing right now.”
For Edge, starting the “Urgent Relief Needed for The Maket Place Staff” GoFundMe was what she called “a knee-jerk reaction” to that guilt. (One photo; zero videos; 321 words.) She established the campaign and Dissen promoted it on his social channels, which have a substantial following.
As Lelo de Larrea said, “Another success factor is the frequency of updates that you give your supporters.” At press time, The Market Place’s campaign had raised more than $43,000.
Edge empties the account bi-weekly, and the funds are split evenly between all staff members regardless of hours or employment status before the flood. “It feels like the only thing we can do right now,” she said.
Zafiro also split proceeds evenly, first withdrawing campaign funds when donations reached the $10,000 mark. He said, “It wasn’t much money, but it was the only money that some of these people had seen in two weeks.”
Many names on the Posana campaign’s donor list were familiar to Zafiro, including those of regulars James Vaughn and Kevin Broadwater, retired locals who donated $500. They described their donation as a gesture of support, but also in their own self-interest: They’re lovers of the restaurant who want to see it reopen and thrive.
“The restaurant scene is a big part of what living in Asheville is all about,” Broadwater said.
Kate Collins, a Kenilworth resident who is semi-retired, donated to the GoFundMe campaigns for several local restaurants, including Corner Kitchen, West Asheville Bakery, and All Souls Pizza. “I chose to retire in Asheville because of the food, art, and entertainment scene,” she said. “Restaurants bring people together and offer diversity and the flavors of life.”
According to Lelo de Larrea, crowdfunding platforms are particuarly important for restaurants because dining enthusiasts are willing to look past the risk factors that scare off banks and venture capitalists. But it’s clear they’re not a long-term solution, even if the 90 percent spike in all GoFundMe campaigns linked to natural distasters over the past five years suggests those coping with crises such as Helene are pinning hopes on them.
In an October 23 letter to elected North Carolina officials, the Asheville Independent Restaurants Assocation (AIR) requested federal funding, increased unemployment benefits, and a loan payment pause to protect the city’s food and beverage industry.
Zafiro and his team have established a standalone staff relief fund that will be supported by event fees and special menu items. Posana reopened on November 1, but the GoFundMe will remain operational indefinitely, with donations going into the relief fund.
“Whether it be another pandemic, whether it be another flood, whatever it is,” he said. “If a member of my team gets injured and they can’t make it to work and they need some help, we want to make sure that Posana as a business is there for them.”
It will take more than past patrons’ generosity to ensure that Posana—along with every other Asheville area restaurant—will be there at all, industry members agree.
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