Some of you may be aware of this, but I was researching restaurants recently and came across this bit of news. Unlike Atari, Long Island Iced Tea Corp and Kodak, I think the Hooter cryptocurrency rewards program could work, though, the surge in value in the company was silly, to say the least.
To be clear, Hooters themselves are not the ones behind this rewards program. It is a particular franchisee of Hooters based in Charlotte named Chanticleer Holdings Inc. After announcing the program, shares of Chanticleer rose 41%. The company owns burger restaurants, in addition to Hooter franchises.
Apparently, Chanticleer’s rewards program will be a joint effort with Mobivity Holdings Corp. The blockchain loyalty program will dish out “Mobivity Merit” tokens.
This particular case may be more evidence of a disturbing trend among dying companies using “blockchain” and “cryptocurrency” to make quick gains. The article (link below) states that Chanticleer’s stock has been down more than 75% over the past three years.
Now, there could be an argument that the buzz and hype is somewhat helpful given hype could lead to demand and more usage of cryptocurrency. However, what I find more interesting is the potential of cryptocurrency being integrated into reward/loyalty programs.
Specifically regarding Hooters, a loyalty program is important to the chain – or master franchisees - due to innate obstacles. In the US, the restaurant is known as a “breastaurant” since food is served by women in skimpy outfits. Currently, the way around this is delivery and takeout. The company is also testing a fully-clothed concept in Cicero, IL called Hoots. A loyalty program is a great way to ensure future business, even if customers are embarrassed to visit the restaurant.
Several companies in the travel and tourism industry accept bitcoin or other cryptocurrencies for payment. Trippki is a 2018 ICO that is hoping to resolve issues around rewards programs with their own cryptocurrency.
While I am a strong believer in using cryptocurrencies in rewards programs, usage of them faces the same major challenge as cryptocurrency: distribution. Rewards programs in isolation have limited appeal. Consumers often forget reward program IDs, passwords and cards. However, if a company like Bloomin’ Brands, which owns Outback, Bonefish Grill, Carrabba’s and Flemings were to adopt cryptocurrency, the appeal would be greater. A network of rewards could be game changing.
So, what companies do you know that are using cryptocurrencies in their rewards programs? Would you be more likely to frequent a chain using its own cryptocurrency for its reward programs? What do you feel about the overall potential for cryptocurrencies in rewards programs?
