Immigrant Food: Restaurants With A Mission

Immigrant Food, a Washington, D.C. and Virginia-based restaurant chain, is redefining the dining experience by fusing global flavors with a commitment to social impact. Founded by immigrants America’s first gastroadvocacy restaurant that serves world flavors with a mission and Téa Ivanovic, Immigrant Food celebrates the culinary contributions of immigrants while actively advocating for their rights and challenging negative perceptions. Through a unique “engagement menu” and a recent Regulation Crowdfunding (Reg CF) campaign that raised nearly $1 million, the company empowers customers to join its mission, proving that social consciousness and business success can go hand in hand.

Immigrant Food Is More Than A Meal, Its Advocacy On A Plate

Immigrant Food was founded in January 2019 by Schechter and Ivanovic, with their first location opening in November 2019 near the White House in Washington, D.C. The founders, both immigrants themselves (Schechter from Italy and Ivanovic from Belgium), were driven by a desire to celebrate and showcase the diverse culinary heritage immigrants bring to the United States. They envisioned a restaurant that went beyond simply serving delicious food: They aimed to become a platform for social change and advocacy.

The idea for Immigrant Food stemmed from a desire to celebrate immigrants and their contributions through food. Schechter and Ivanovic recognized the power of food to transcend borders and unite people from different backgrounds. By creating a menu that fused flavors and culinary traditions worldwide, they hoped to foster a deeper understanding and appreciation for the richness and diversity of immigrant cultures.

Moreover, they wanted to actively advocate for immigrant rights and challenge negative perceptions surrounding immigration. They saw an opportunity to use their restaurants as a platform to spark conversations and promote a more inclusive and welcoming narrative about immigrants. This commitment to social advocacy is embedded in Immigrant Food’s business model, with initiatives like the “engagement menu” that provides customers with easy ways to get involved in supporting immigrant communities.

Immigrant Food’s unique blend of gastronomy and social advocacy has resonated with customers and investors alike. “I know the food will always be inventive and comforting,” said Leila Babaeva, a customer. “And while I’m indulging in a cocktail flight of the month, a meal, or a weekend brunch, I feel good about my patronage to the one restaurant in town that really cares about the people who are the backbone of the restaurant industry and frankly, any industry—immigrants.”

The company has experienced significant growth since its inception, expanding to five locations and achieving impressive financial results. Their success underscores the growing demand for businesses that not only prioritize profit but also actively contribute to positive social impact.

Immigrant Food’s Recipe For Adaptability And Resilience

Immigrant Food’s journey has been marked by several obstacles that tested the founders’ resilience and adaptability. The most significant challenge, as Ivanovic recounts, was navigating the Covid-19 pandemic. Having opened their first location just three months before the pandemic struck, they faced a sudden and dramatic drop in business. “D.C. became a ghost town,” Ivanovic said. Their location near the White House, once a strategic advantage, became a liability as the area emptied.

To survive, Ivanovic and Schechter had to get creative. They pivoted to online cooking classes, for which they provided meal kits, virtual events, and delivery services. Ivanovic took on multiple roles within the restaurant to keep the business afloat. This hands-on experience proved invaluable, giving her a deep understanding of every facet of their operation. “The silver lining was that I learned to do every part of the business, including dishwashing and delivery,” Ivanovic shared.

Beyond the pandemic, the founders faced the ongoing challenge of access to capital, a common hurdle for restaurants in the competitive hospitality industry. Despite early success with friends and family investors, they recognized the need to diversify their funding sources for their fourth restaurant. This led them to explore Reg CF, which allowed them to raise over $800,000 from a wider pool of investors, including their staff and loyal customers.

By embracing innovation, demonstrating a willingness to adapt, and actively engaging their community, Ivanovic and Schechter have successfully overcome obstacles and positioned Immigrant Food for continued growth. Future plans include locations in blue islands of red states such as North Carolina and Georgia.

Unlocking Capital: Reg CF For Restaurants

Reg CF offers restaurants a unique way to raise capital. It can be a valuable tool, particularly for restaurants. However, it also comes with challenges. For Ivanovic and Schechter, the advantages outweighed the negatives. Immigrant Foods raised $883,150.78 from 249 investors between March 14, 2024 and August 12, 2024.

Advantages:

• Access capital from a large pool of investors.
• Build brand loyalty by turning customers and employees into investors.
• Strengthen community ties and customer relationships.
• Reduce dependence on traditional financing.
• Offers a simpler process for raising capital up to $5 million annually than raisin money from angels, VCs, or public markets.

Disadvantages:

• Requires significant time and marketing effort.
• Entails disclosing financials and business plans, potentially incurring legal and accounting costs.
• May dilute ownership and complicate decision-making.
• A $5 million cap may be insufficient for larger restaurant chains.
• Ongoing reporting to investors and the SEC is required.
• A failed campaign could negatively impact your brand.

“For me, my investment isn’t only a matter of food testing and benefits, but an investment in a marriage of tastes in their amazing global dishes, top-class cocktails, and their overarching solidarity, respect, diversity, and innovation on behalf and in support of today’s immigrants,” explained Alejandro Marquez de la Plata, StartEngine Investor for Immigrant Food.

For restaurants outside venture capital hubs such as Washington, DC, Reg CF offers access to community support, less competition for funds, and more control over the company.

What kinds of funding are you considering for your company?