Restaurant initially needs support in Canada (7)
I believe the answer is:
canteen
'restaurant' is the definition.
(both can mean somewhere to eat)
'initially needs support in canada' is the wordplay.
'initially' suggests taking the first letters.
'support' becomes 'tee' (tee is a kind of support).
'in' is an insertion indicator.
'canada' becomes 'CAN' (common abbreviation eg in sporting competitions).
The initial letter of 'needs' is 'n'.
'n'+'tee'='ntee'
'ntee' inserted into 'can' is 'CANTEEN'.
(Other definitions for canteen that I've seen before include "Workers' cafe and cutlery box" , "Cafe, flask and cutlery box" , "Set of cutlery" , "Soldier's water-flask" , "Staff restaurant" .)