Restaurants have something new on their menus—NFTs. And no, you can’t eat them. Instead, restaurateurs are using the nonfungible tokens to act as memberships, in a sense, allowing holders to access exclusive perks and experiences.
Chefs Tom Colicchio and Spike Mendelsohn recently launched CHFTY Pizzas, 8,888 pizza-themed NFTs that give users access to exclusive events and merch. NFT holders of The Brooklyn Chop House’s new Times Square location, which is slated to open this fall/winter, are granted access to an “intimate cellar area.” And the Chotto Matte restaurant chain launched a one-of-one NFT called “The Founder” that gives the holder access to future restaurant openings, vineyard and distillery visits, a private experience with the restaurant’s executive chef, New Year’s Eve reservations for six, and even sports tickets.
“At Chotto Matte, it's important that we continue to evolve and push the boundaries and vision of the restaurant industry; that's why it made sense for us to enter the market,” said Kurt Zdesar, founder and owner of Chotto Matte, the global dining destination that serves Nikkei (Japanese and Peruvian) cuisine, with locations in London, Toronto, and Miami.
“Everything about this NFT illustrates the boundaries we push for creativity," he added. "The Founder [which was purchased this past spring] allows us to create an exclusive membership club, with never-before-seen benefits like personal invitations, luxury accommodations, curated dining experiences, and more. Not to mention this is a one-of-a-kind membership, elevating its exclusivity."
Although much of Web3 revolves around democratizing the internet, these restaurant-related NFTs don’t come cheap. The Brooklyn Chop House NFTs start at $8,000, with more expensive tiers offering even more exclusive perks. Chotto Matte’s The Founder NFT cost $1 million.
In April, Chotto Matte hosted a launch event at its Miami Beach location, in conjunction with the Bitcoin Miami conference and Miami NFT Week. Conference attendees were able to unlock a secret curated menu featuring opulent dishes, which were available to purchase only in Bitcoin, as well as a limited-edition Bitcoin-inspired cocktail, the 10/31, which was made with Japanese whisky and garnished with a flammable dollar bill that revealed a Bitcoin coin.
A limited-edition Bitcoin-inspired cocktail made with Japanese whisky and garnished with a flammable dollar bill that revealed a Bitcoin coin was served at the launch party for Chotto Matte's The Founder NFT.Photo: Courtesy of Chotto Matte
“During the pandemic and, honestly even before, costs of operating a restaurant were skyrocketing. Coming from a restaurant background, we saw an opportunity for restaurants to find a brand new stream of revenue with little to no upfront costs using their IP,” explained Colin Camac, co-founder of Front of House, about the decision to launch the platform. “We also see it as an opportunity for them to take their first steps into the Web3 world and interact with their guests in a brand new way.”
For example, the Emmett’s Supper Club collectibles (priced at $300 each) grant owners access to special reservations, pizza parties, exclusive merch, and more. Front of House’s next drop will be with Hanoi House, and upcoming partners include One White Street, Rosella, Niche Niche and Tokyo Record Bar, and The Sussman’s.
Camac said that the advantage to restaurants offering digital collectibles like these is that they are able to develop a “low-friction, additional revenue stream not reliant on physically getting diners into seats that can help make the business more resilient and more profitable.” It also offers the “ability to create a community around the people that are really interested in what the restaurant offers. This is a whole new way for restaurants to keep their best guests involved in their world.”
Kevin Seo, co-founder of Bored & Hungry—the world’s first NFT-branded hamburger joint, located in Long Beach, Calif., that uses a motif inspired by Bored Ape Yacht Club, one of the biggest NFT collections currently in circulation—echoed that sentiment.
“It's an amazing way to engage the communities that want to support you, and in return brings utility to the community through different points of access and discounts," he said. "It's a way to further participate with those that enjoy your food.”
Along with fellow Bored & Hungry co-founder Andy Nguyen, Seo has also launched Food Fighters Universe, an NFT collection that will help develop an NFT-backed restaurant group. Food Fighters NFTs grant members access to special events (including passes to the group’s food and music festival), rewards, and perks (like free food) in Web3 and IRL, as well as guided shared governance, allowing NFT holders to weigh in on the location, menu, and design of future restaurants. The group is also currently developing an “immersive retail dessert experience" called Dr. Bombay’s Sweet Exploration with NFT enthusiast Snoop Dogg.
Bored & Hungry, the world’s first NFT-branded hamburger joint, located in Long Beach, Calif., features a motif inspired by Bored Ape Yacht Club, one of the biggest NFT collections currently in circulation.Photo: Calvin Hang
Even though the exact location of the venue is TBD, all 1,500 NFTs released to the public sold out in minutes, with prices ranging from around $8,000 to $14,000; current resale values are going for nearly double those amounts.
“Diners are attracted to this concept as it's the first of its kind—many people like exclusivity and believe in social currency," explained Rodolitz, founder and CEO of VCR Group, the hospitality company behind Flyfish Club. "They're into the community aspect and being a part of something new and innovative with like-minded people, and they actually own their membership, giving them control of it completely."
“It's an amazing way to engage the communities that want to support you, and in return brings utility to the community through different points of access and discounts. It's a way to further participate with those that enjoy your food,” said Kevin Seo, co-founder of Bored & Hungry.Photo: Calvin Hang
Rodolitz also pointed out why the concept makes economic sense for a volatile industry like restaurants. “It creates a safer financial model for our company, as we have a few ways of generating revenue, rather than just relying on the restaurant operations. The hospitality industry is very challenging, so by having a few additional ways to generate income, we can focus on being more hospitable and less transactional with our members.”
Of course, there’s also a cutting-edge, cool factor that attracts both diners and restaurateurs to these digestible NFTs. “Apart from the exclusivity and uniqueness that NFTs bring to the restaurant industry, we think it's a great opportunity to create something that inspires customers,” Zdesar said. “The possibilities in this market are endless, and NFTs give us the opportunity to express our creativity and curate an eclectic, elevated dining experience in the restaurant scene.”
