QSR February 2023

DEPARTMENT INNOVATION

TheWonders ofWeb3 The always-innovative Wow Bao has another customer engagement tool on deck. B Y I S A B E L L A S H E R K

experience labeled “Starbucks Odyssey.” The coffee giant already has a hugely successful loyalty base through its mobile offering—it was downloaded 1.4 million times in Novem ber alone—and plans to allow users to collect “stamps” ( NFT s ) after completing interactive experiences, or “ journeys,” through Star bucks Odyssey. Wow Bao—known for its quick Asian street food and over 700 dark kitchen foot print nationwide—has also played into that traditional loyalty, launching its initial rewards program in May 2022 through Paytronix. That program is for customers who order third-party delivery through the brand’s web site. For every dollar spent, the customer gets a point. Once the user earns 100, $7 in “Bao Bucks” are added to their account, which then can be used as money off their order. Because the program directs users to Wow Bao’s website in order to access the rewards program, the brand is able to own its customer data, Geoff Alexander, CEO of Wow Bao, says. “Wowbao.com is powered by DoorDash storefront, which is still marketplace ordering,” he says. “But because the orders come through

“Bao Bucks” are helping the brand redefine loyalty in a changing era.

H ave you ever ordered an NFT with your takeout? Well, Wow Bao may just let you do that—kind of. The brand, which mainly spreads through “dark kitchens” and third-party delivery services, plans to connect its rewards program to Web3, which is the third iteration of the world wide web. Web3 is differ ent from past versions of the internet; information is decentralized on Web3, and its applications run on blockchains or decentral ized “peer-to-peer networks,” according to Investopedia. Buying NFTs, or non-fungible tokens, fromWow Bao allows users to buy into the brand, which can redef ine what “loyalty” means, espe cially in the digital arena. Rewards and loyalty programs have been a necessary part of the quick-service industry for a long time. Most recently, mobile apps that house these platform (versus the punch cards of old ) have been the common iteration, and for good reason. In November, the top 10 quick-service restaurant apps were downloaded 11.4 million times. Year-over-year in November, downloads of the top 36 apps were up 18.6 percent. In Decem ber, Starbucks launched a beta version of its own NFT rewards

our website, we are able to own the customer data as opposed to the third-party delivery platforms, owning the customer data so we can have better demographic information.” In order to join in on the Web3 extension of the Bao Bucks pro gram when it launches, users will purchase an NFT-based access pass. There will be three tiers of passes that unlock increasing lev els of different rewards for the customer. Unlike some other NFTs, where a crypto wallet is needed for purchase, customers can purchase one fromWow Bao with a credit card. Alexander says people have shown interest in the program. “Our hope is that early Q1 to start minting—and to be building that community,” he says. Alexander says the goal in adding NFTs and Web3 into the Bao Bucks setup is to transform it from a rewards to a loyalty program. Because most of the brand’s locations are “dark kitchens,” he says the loyalty aspect can get lost. “I don’t call it a loyalty program because loyalty is really where you know the people where you’re going and they know you,” he says. “With third party delivery you don’t really WOW BAO CONTINUED ON PAGE 55

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FEBRUARY 2023 | QSR | www.qsrmagazine.com