How Brands Use NFTs: The Food & Beverage Industry | Ingram Yuzek Gainen Carroll & Bertolotti, LLP

NFTs have become perhaps one of the most talked about digital investments. Although NFTs have been around since 2014, the last year was the first year NFTs really went mainstream. Over the past few months, NFTs have evolved rapidly, and recently, restaurant and restaurant experiences have begun to use NFTs and web3 to engage with their customer base in more meaningful ways than web2 platforms.

Last month I attended “SimulATE: The Food Metaverse & NFT Mini-Summit”, the first-ever food-meets-metaverse-meets-NFT-meets-web3 event where chefs, entrepreneurs, restaurateurs, hospitality brands , food and beverage brands, and others from the food tech industry met virtually to discuss the intersection of food with the metaverse and Web 3. The event was sponsored by The Spoon, an organization that provides daily analysis and reporting on the food tech revolution. Virtualized worlds, mixed reality, the metaverse and NFTs are shaping the future of food and how new developments in food technology are leveraged by food companies and the consumers they serve. digital art that gets minted and sold, like when Mike Winkelmann, aka Beeple, sold his NFT Everydays: The First 5,000 Days for $69 million at Christie’s. emphasizing the community aspect that comes with web3 and finding specific utility for the NFT token holder. This article discusses how some companies in the food tech world are thinking outside the box and successfully using NFTs and using web3 to promote their services and products to consumers.

As we reported earlier this year, Flyfish Club is the world’s first private dining club, where membership is purchased on the blockchain as NFT. Using NFTs, the creators of Flyfish Club, VCR Group, have developed a system that converts a regular membership into an asset that the NFT token holder can redeem. Unlike other membership programs, Flyfish Club members own their membership and can do whatever they want – enjoy it, sell it or rent it out. Unlike other NFT projects, Flyfish Club is a utility-based project. This is a project where the NFT token holder receives something tangible instead of just having a digital artwork stored in their crypto wallet or displayed as an avatar on social media platforms. In addition to receiving a fish- or sushi-themed NFT, token holders are also members of the Flyfish Club restaurant located in New York City and have access to real-life pop-up events such as Super Bowl parties and car rentals. a yacht in Miami. The focus is on building a community of people who love food and enjoy exclusive dining experiences.

The Flyfish Club NFT drop was also revolutionary. The VCR Group has developed a hugely successful financial model – they generated over $14 million on initial strike, with continued sales reaching an impressive $21 million. The company has no debt and no investors. By offering membership as an NFT, Flyfish Club directly returns equity to the token holder, and the token holder can capitalize on their asset by selling or renting their membership if they wish. VCR Group emphasized that it does not intend to create a stream of financial passive income from token holders leasing their membership, quite the contrary. Their intent is heavily focused on the community and provides as much value as possible to the token holder. The rental concept was designed so that if Flyfish Club members are away for a few weeks, the restaurant remains full of customers, and people who are not token holders can benefit from the Flyfish Club experience and perhaps be become a token. holder in the future. The opening of the Flyfish Club is scheduled for the first half of 2023.

Another exciting utility-based NFT project is BurgerDAO. If you missed it, we talked about DAOs (Decentralized Autonomous Organizations) in our article about Snoop Dogg’s very first NFT. DAOs are quickly becoming another buzzword in the NFT community, and BurgerDAO is a food brand that uses DAOs to make decisions as a community about the brand. Inspired by MrBeast Burger (a virtual restaurant brand that delivers burgers and fries across the United States), BurgerDAO has no physical location and instead uses cloud kitchens (see REEF Kitchens, Virtual Dining Concepts, Nextbite), restaurants that create food on behalf of digital brands. BurgerDAO offers burger-themed NFTs that provide the token holder with several tangible benefits, including the ability to collaborate with other community members to create and vote on proposals that directly impact the brand, rights denomination for franchises, a monthly code for free burgers, and access to members-only Discord channels. This is just another example of how food brands are coming up with creative ways to sell NFTs and also provide a physical component that delivers tangible value to the consumer.

The Bored Breakfast Club is a web3 NFT cafe subscription company. In addition to providing the token holder with digital artwork that depicts unique breakfast scenes, the company also provides utility as the NFT unlocks a tangible item – a coffee subscription. The Bored Breakfast Club partners with an existing coffee roaster and regularly ships coffee to its members. Like Flyfish Club and BurgerDAO, Bored Breakfast Club was designed to give back to the community. The founders created a concept called Community Coffee Wallet, which is funded by a royalty on secondary market sales and a percentage of profits from coffee and merchandise sales. Once the Community Wallet reaches a certain threshold, the Bored Breakfast Club distributes a new coffee blend to Bored Breakfast Club members. Funds pay for packaging, roasting, fulfillment, and free worldwide shipping to token holders. The story behind the creation of the Bored Breakfast Club is also unique. The founders of the Bored Breakfast Club are also members of the Bored Ape Yacht Club (BAYC). As another organization that provides utility to the NFT token holder, the BAYC allows the individual token holder to have the commercial right to use their specific NFT in any way they wish. The founders of the Bored Breakfast Club decided to use their monkeys by featuring them on Bored Breakfast Club packaging. The Bored Breakfast Club NFT artwork is essentially BAYC derivative work, where the digital art depicts breakfast scenes of a monkey sitting down for breakfast. Although the Bored Breakfast Club founders own BAYC, the Bored Breakfast Club project is not affiliated with BAYC or Yuga Labs.

This article has highlighted a few notable projects in the world of food tech. Yet, as you can see, there are many exciting innovations related to NFTs, with new projects being released all the time.

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