Dragonfly will launch a new twist on NFT as a loyalty club

The founder of a multi-concept restaurant in New Jersey launches an NFT project that innovatively revisits the loyalty club trend.

Dragonfly Brands, based in Linden, NJ, has been operating the Asian casual dining concept Dragonfly for about a decade with two units — until the pandemic forced the restaurants to close and the company to redesign the model.

“It was our chance to say, okay, we’re on the verge of failure. But now it’s time to experiment,” said founder Ching Ho.

And the experience they had.

First, the company has completely reworked the concept of sit-down service, layering six to eight additional menus that can be ordered both at the restaurant but also exist as standalone virtual brands for delivery from the same kitchen.

New brands include Hibachi Express, Voodoo Burger, Poke Express, Monster Mac Factory (mac and cheese) and others, including taco and barbecue offerings.

But, since operating up to eight brands under one roof is a complex operation, the next step was to streamline and reduce labor costs, Ho said.

Dragonfly Brands has turned to automation on a number of fronts, bringing cute cat-themed robots into dining rooms to help with lodging, food management, public transit and other tasks. In the kitchen, robotics help with frying, for example.

These measures allowed restaurants to roughly double their sales, Ho said. Dragonfly and sister concept Dragonfly Kitchen in Woodbridge, New Jersey, each made about $2 million to $2.5 million before the pandemic. Now they together make $10-11 million in volume, he said, and the company is looking to expand to more places.

Next up is the Dragonfly NFT project, which is currently on presale as the company prepares for a public launch.

The company’s 250 Dragonfly tokens, currently available for 1 Ethereum (which was worth around $1,945 on Wednesday), offer entry into a sort of loyalty club where members receive $100 in monthly credits for restaurants and virtual brands. of the society. A top-tier Supper Club token also grants special access to exclusive real-life events, in addition to the monthly credit.

The model is similar to the private dining club membership offered by Flyfish Club, a New York City venue slated to open next year. “But you can use it today, rather than a Flyfish Club that wasn’t built,” Ho noted.

A consumer purchasing the Dragonfly token will likely break even in about two years, assuming they use their monthly $100 credit – which wouldn’t be difficult with 14 brands available for delivery and two physical locations.

“You build a very loyal customer who will come back more than once a month,” Ho said.

Selling NFTs also generates revenue for restaurants, of course, adding another layer of revenue. And an NFT holder can resell the token, which also generates royalty income.

After testing with their own brands, Dragonfly plans to reach out to other catering companies to see if they want to participate, giving Dragonfly NFT holders access to more brands beyond the 14 within the group.

“If we add 10 more restaurants, or even add a grocery store, the value of the token will increase,” Ho said.

Dragonfly also plans to build on the community aspect of NFTs, with a Discord community allowing token holders to interact on this platform.

The past few weeks have been a volatile time for cryptocurrency holders, with Ethereum losing about half of its value.

Ho sees it as a bubble about to burst, which will “drive out bad operators and scammers”, leaving those who “try to use the technology as intended”.

In the restaurant world, he predicts that more companies will move towards more utilitarian NFT offerings, like this one. “It’s not vaporware,” he said. “Most NFTs are pretty scam out there.”

Contact Lisa Jennings at [email protected]

Follow her on Twitter: @livetodineout

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