We investigate the effect of the UK’s “Eat Out to Help Out" policy on firm creation. The policy subsidised people to eat-out at participating restaurants for a period over the COVID-19 pandemic. We compare the number of new incorporations in postcodes with participating restaurants against all postcodes. We find a 6.3% increase in business incorporations in areas with participating restaurants due to the policy. The increase is largest in high-street service activities such as ‘hairdressing and other beauty treatment’. We interpret this as evidence of a demand stimulus in one sector, leading to anticipated demand increases in geographically-close sectors, and consequently a supply increase as measured by firm creation.