Haven’t these died a death?
The market for NFTs (non-fungible tokens) took a bit of beating alongside that of cryptocurrency earlier this year. The two markets are closely linked because - typically, at least - NFTs can’t be purchased with regular currency. But you knew that, right?
I’m still not quite clear what NFTs are...
Non-fungible more or less means unique - and has absolutely nothing to do with mushrooms. NFTs are best thought of as a voucher that grants access to something digital (they exist on a blockchain - the same tech that powers crypto - and therefore cannot be replicated). The digital ‘thing’ is usually something that could broadly be termed ‘content’ such as music or pictures. The technology caused a big stir in the art world a few years ago with people scrambling to buy rather questionable looking digital art works in the hope their value would increase exponentially.
And did they?
Some early adopters made big sums but in general NFTs have proven to be a poor investment - according to blockchain analytics platform Chainalysis the average price of an NFT sale decreased by 92% between May 2022 and July 2022. The graph it produced bore a striking resemblance to that of the pound following Liz Truss and Kwasi Kwarteng’s tax cuts announcement.
What has any of this got to do restaurants?
I’m glad you asked. Technology has revolutionised restaurants but - until someone invents that Replicator thing off Star Trek, at least - food and drink cannot be digitised. That hasn’t stopped restaurants exploring NFTs, though. Upscale Peruvian restaurant COYA - which operates two sites in London and a number of others overseas - is commissioning artists to design and create NFTs that represent each one of its sites in a move that, according to the press release, ‘successfully positions itself as one of the pioneering global brands venturing into the future and investing in the digital art sphere’.
So really this is just about flogging customers digital merch?
That’s what a number of places have opted to do, yes. But burger brand Patty & Bun has combined its sale of 4444 digital works depicting its Burgerman character with an exclusive loyalty programme. Those that purchase one will receive benefits including access to guest chef nights, brewery tours, butchery classes and ‘one-off’ in-restaurant offers. Each NFT is set to be sold for 0.07 ETH, which based on Ethereum’s current value is a little under £100.
I can see how blockchain tech would have applications for loyalty…
It most certainly does. NFTs are a clever way of giving customers access to certain perks. The technology is flexible too, with the creators of NFTs able to specify how long the tokens remain active for and whether or not they can be traded. In the US, some restaurants are already using NFTs to grant regulars access to exclusive menu items and Chotto Matte founder Kurt Zdesar recently launched a one-of-one NFT called ‘The Founder’ that gives the holder access to perks including invites to future restaurant openings, vineyard visits and private dinners cooked by the Nikkei restaurant’s executive chef. The price? $1m.
I think I’ll stick to my Caffe Nero stamp card
Dream big.