February 28th, 2024

Guide to Applying for Government Grants for Restaurants and Cafes

Government Grants for Restaurants and Cafes

Applying for government grants for restaurant and cafe owners is an important skill to develop – there are regular opportunities to receive government funding in many areas. This guide provides detailed advice to help you navigate the grant application process, and there is special guidance at the end on grants for energy & water-saving equipment, digital upgrades, and improvements to your employee management systems.

To find the latest government grant opportunities, check Australian Govt Business Grants FinderNew Zealand Govt Business Grants FinderUS Federal Grants.gov and US Chamber Grants Finder.

Preparing the Application – Basics

Check Your Eligibility: Make sure you meet the eligibility criteria specified in the grant guidelines. Pay close attention to the small print and instructions – government departments stick to the rules and are unlikely to follow up on incomplete applications. Just because you think your business idea is worthy, it’s unlikely to be funded if it’s outside the guidelines..

Gather Required Documents: This may include financial statements, business plans, and other relevant attachments. Contact the funding body for clarification if you’re uncertain about your eligibility or the required documents. If they don’t respond quickly, it’s OK to include extra information just in case.

Move Quickly! Funding is often limited, and applications are usually processed on a first-come, first-served basis, especially if the grant is generous. While speed is critical, accuracy is also essential. Make sure you have all the necessary information and that it is correct before submitting your application.

Filling Out Your Grant Application

Create a Strong Introduction: Write something that will grab the assessor’s attention but avoid hype. Think of this as the cover letter for your application, which aims to secure you an ‘interview’ or further consideration.

Up-to-date Numbers Are Essential: Some grants require evidence of financial impact, such as a decline in business or capacity to repay. Keeping your accounts up to date allows you to generate reports and provide the necessary proof quickly. Your financial statements may be compared with previous tax or BAS returns. It’s important to have your financials in order and compliant with regulations. Working with a professional bookkeeper ensures your financials tell a consistent and reliable story.

Tell Your Business Story: Include a brief history of your business, detailing what you sell, your growth, significant achievements, and key staff members. Include real numbers eg ‘we started with 3 employees, and now two years later, we have 12 full-time people on the payroll.’ This helps assessors understand your business’s background and potential. It’s also very useful for future applicants and to go on your website. Include the names of owners, partners and real people, and it’s OK to explain any ups and downs.

Make Sure to Align with the Grant Objectives: If the grant aims to support business sales growth, discuss how you plan to achieve this. This could involve investing in new equipment for faster takeaway service, installing new refrigerated display, or setting up an online delivery system – walk through the process so it’s crystal clear for the assessor, and quote numbers eg current customer count and sales per day, and how the new systems will increase these after installation.

Writing Tips for Your Grant Application

Write for Your Audience: Assume the assessors are not familiar with hospitality and all the parts we know so well. Avoid industry jargon eg FOH, commis chef, POS – spell the terms out clearly. Use photos if it will help, especially if it’s about ‘before and after’ physical improvements. Make it easy for them to understand why it should be funded.

Be Realistic: When forecasting the future of your business with the grant funds, be realistic – you’re unlikely to be improving sales by 50% in the next 3 months!. Avoid making over-optimistic predictions that might raise doubts about your credibility.

Obtain Professional Quotes for Equipment or Services: Get quotes from professional suppliers when estimating costs. Assessors know market prices well, so ensure your quotes are realistic. For example, a quality website for your café might cost less than $3,000, so don’t inflate the requested amount unnecessarily.

Use Reputable Suppliers: This means established suppliers with business registration, not friends-of-friends! Make sure that the quotes you obtain are detailed and align with the grant’s purpose, demonstrating value for money. Keep an audit trail for all your grant-related expenses – you may be asked to justify your expenses at a later date. This is crucial for accountability and transparency, as government grants are public funds. A qualified bookkeeper can help you manage this aspect efficiently.

Don’t Apply for Retrospective Funding: Grants are generally intended for future activities. Avoid applying for funding for projects that have already been completed or to cover debts you have incurred – it’s rare for deficit funding to be available.

Double-Check Your Application: Run the spell-checker and have someone else proofread your application and check your financial figures. Errors can undermine your credibility and reduce your chances of success.

Let’s look at what else you need for certain types of applications…

Applying for grants for energy or water-efficient Equipment

Highlight the Environmental Impact: Show how the new equipment will reduce energy or water consumption in your restaurant. Provide specific data or estimates on the expected savings and environmental benefits – equipment suppliers will have this for new equipment, and compliance plates (or Google the model number) will show it for what’s being replaced. This aligns with your sustainability goals and shows that your project has a tangible, positive impact.

Show Cost Savings: Emphasise the long-term cost savings the new equipment will bring. Calculate the potential reduction in utility bills and how this will improve your restaurant’s profitability. This helps justify the investment and shows that you have a sound financial plan and have thought through the Return on Investment.

Give Detailed Comparisons: Show the difference between the old and new models. Highlight features such as energy or water efficiency ratings, certifications (e.g., Energy Star), and other relevant specifications. This demonstrates that you have thoroughly researched your options and are making an informed decision.

See also > How to Reduce Your Restaurant Water Bill
> Warmth and Energy Efficiency in Restaurants: Heating and Design Choices
> Cooling, Air Conditioning and Ventilation in Restaurants: Better Results at a Lower Cost.

Applying for grants to improve your restaurant technology

Show the Business Impact: How will the technology upgrades enhance your restaurant’s operations, customer experience, and overall efficiency? Quote customer numbers before and after, through-flow efficiencies, better ordering accuracy, and less kitchen stress. If you’re implementing a new point-of-sale (POS) system or online ordering platform, explain how these tools will streamline processes, increase order value, and more customers able to be served.

Identify Specific Solutions: Be specific about the technology solutions you plan to implement – quote names. Whether upgrading your reservation system, enhancing your website for online orders, or adopting a customer relationship management (CRM) system, give details on the software or hardware you intend to use and how it addresses your restaurant’s needs. Compare with what you have now and how this will be better.

Show How You’re Following Industry Trends: If you’re investing in new contactless payment options or better mobile ordering, explain how these technologies are becoming standard in the industry and how they position your restaurant competitively. Or a kitchen display system that will help to address well-known shortages of kitchen staff.

Applying for grants to improve employee management systems

Highlight Efficiency and Compliance: Emphasise how the upgraded employee systems will streamline administration, improve staff rostering, and improve compliance with labour laws and regulations. Show how these improvements will lead to more efficient operations, reduce overall staff costs and reduce the risk of legal issues.

Focus on Employee Development: Show how the new systems will support employee training and development. For example, if you’re implementing a learning management system (LMS) for staff training, explain how it will provide ongoing education opportunities, improve employee skills, and ultimately improve service quality and average customer spend.

Showcase the Impact on Employee Satisfaction: Explain how the improved employee systems will improve employee satisfaction and retention. This could include better communication tools, more transparent performance management, or better processes for handling employee concerns. Highlighting the positive impact on your team’s morale and engagement can strengthen your application.

Finally, learn from the process: even if your application is unsuccessful, use it as a learning opportunity. Review the feedback, if provided, and apply it to future applications. Reuse and adapt elements of your application for future grant opportunities or to communicate with local government, tourism and business development organisations. Learning to ‘talk about yourself’ in a strong, credible and positive manner is a great business skill to develop – good luck!

Government Grants for Restaurants and Cafes

Check the other useful blog posts on the Foodie Coaches website…

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