Following the first craze for non-fungible tokens (NFTs) during the cryptocurrency bull market of August 16–28, 2022–2021, businesses in the food industry are starting to investigate the opportunities given by blockchain technology.
Food first examines the expanding use of food NFTs, financial security comprised of digital data recorded on a blockchain, a kind of distributed ledger, and how they are being utilized in the global food sector at the present time. Offering one-off deals to clients is a novel use of NFTs. For instance, businesses may utilize marketing to help grow the current metaverse of online simulated worlds.
Considering the one-of-a-kind nature of food NFTs, they are not transferable. To prove their individuality, NFTs have their own information stored on a distributed ledger alongside the NFT itself. Since it costs less to create them initially on the blockchain, non-fungible tokens are often still pictures, but they may also be GIFs or movies.
Caffeine and Internet Connection: Starbucks on Web3
Howard Schultz, the interim CEO of Starbucks, announced plans to accept Starbucks food NFT collectibles in the company’s rewards programs beginning in September during the earnings call for the third quarter of the Fiscal Year 2022.
With its compelling spend-to-earn stars strategy, we think this new digital Web3-enabled project will enable us to build upon the Starbucks Rewards engagement model now in use and offer fresh ways to emotionally connect with customers. incorporates the addition of Starbucks-branded digital collectibles as an incentive and aspect of community building, strengthening our online community for third locations.
Web3 is an umbrella phrase for ideas like decentralization, blockchain technology, and token-based economy, according to the coffee shop company. Many individuals see NFTs as a novel way to acquire and sell digital works of art, with transactions often including high levels of speculation. While this may have been the case in the industry’s infancy, the business is “thrilled” that How NFTs “enable users to possess a programmable, brandable digital asset that also functions as an Access Pass.”
The company emphasizes that “we think food NFTs have huge potential to establish an extended, shared-ownership model for loyalty, giving new experiences, fostering community, storytelling, and consumer engagement.” Starbucks has come clean about its lack of commitment to any one of the numerous existing blockchains. However, it demonstrated the significance of sustainability, which would include giving up proof-of-work tokens and not spending energy to “mine” new coins (outlawed by bitcoin).
We want to implement a phased strategy, with an emphasis on rapid iteration, experimentation, knowledge gain, and teamwork. Later this year, the company hopes to launch its first NFT collection, membership, and community dedicated to coffee art and narrative, it underlines.
Exploring the Space with Wendy
The virtual fast food restaurant chain is called its home in the “horizon world” of Meta, the firm that owns Facebook, the “Vendiverse.” Initially, the business debuted a rather mundane digital restaurant in the area in April, minus the indoor basketball court, and granted access to VR users who accomplished a few easy tasks.
In June, sales increased by 100 percent because of a marketing campaign that urged customers to construct Wendy’s Castle in the Metaverse so that they could “reach the pinnacle of Wendy’s morning castle while Wendy’s famous Bacon Bridge and Flying Biscuit waited.” The fast food restaurant gave out free breakfast sandwiches to Virtual Reality clients as an incentive to eat there. As an example, for Halloween of 2017, Chipotle gave out 30,000 burritos to players of Roblox, a virtual version of the online game.
Wendy’s has also trademarked a variety of digital goods, such as tokens, collectibles (including NFTs), digital artwork, and digital cards. McDonald’s, KFC, Taco Bell, Panera Bread, and Panda Express are just some of the many fast food restaurants that have submitted trademark applications similar to the ones described above.
An Early Adopter: Taco Bell
Five new food NFTs were introduced by Taco Bell in March 2021, and the fast food chain is now offering them for sale individually or in packs of five as collections (NFTs are unique, but some have multiple copies). The Taco Bell Foundation received all corporate proceeds to “empower youngsters to select and follow their own career and educational pathways,” as the company puts it.
The company’s tokens were sold in 30 minutes on the NFT exchange Rarible. Each NFT was sold by Taco Bell for less than $2 USD, yet the chain nonetheless made money off of the token sale since Taco Bell kept a tenth of one percent of the earnings whenever an NFT was traded.
Verified on the public ledger, the largest of these transactions totaled less than $20,000 USD. It “could miss a second,” as Taco Bell put it. [collection of non-finite texts] However, over a year has gone and the company has not developed to the point where food NFTs are useful.
The Big Three Fast Food Restaurant Chains, McDonald’s, Burger King, and Pizza Hut Follow
McDonald’s, Burger King, and Pizza Hut all released NFTs in 2021 when the trend was at its height. McDonald’s has not made much progress in NFTs since their first release, however certain local branches, such as McDonald’s Italy, have launched sets of NFTs in collaboration with digital artists.
Burger King used a reward-based NFT approach, wherein patrons scanned QR codes in their lunch boxes to get digital collectibles; when collecting four such items, they were awarded an NFT tied to value prizes such as a free meal. Canada’s Pizza Hut came up with its own NFT, complete with a pizza recipe. Pizza Hut has released a new set of NFTs this year that provides its holders early access to comic books that include augmented reality technology.
NFTs also tend to be unusual in other ways. Los Angeles’ Yes Plz, for instance, accepts NFTs for their coffee subscription service; for each NFT, users periodically get a bag of Yes Plz coffee. There has been a rise in the popularity of food NFTs encoded with culinary recipes, as chefs have appeared on many platforms based on different crypto tokens in order to make royalties from the resale of their creations.
Coca-Cola has announced that they would release “the first Coca-Cola flavor born in the Metaverse in April,” further linking the Metaverse to the gaming culture. The company offers its own augmented reality minigame and a collection of non-game items (NFTs), in addition to hosting a variety of immersive experiences in the popular video game Fortnite.