Web3 has hit the burger joint.
A new community called BurgerDAO wants to create a decentralized burger franchise. According to the announcement, the group is looking to start a ghost cooking burger chain with funding from the token sale for the organization through Juicebox.
BurgerDAO token owners would have a say in the operational structure as well as things like menu creation at a high level, but the group also plans to use the funding from token sales to potentially hire operational staff. (and probably pay a ghost cooking company service charge). According to the group, the profits from the operation would flow into the treasury, which would translate into an appreciation in the value of the tokens.
The group sets three global milestones for their Web3 hamburger franchise, the first being the launch of the first virtual restaurant BurgerDAO. The group estimates the cost to reach this milestone at more than a million dollars and details four specific deliverables to reach this first step: the search for a ghost kitchen partner, the integration of delivery applications, the image branding and menu creation, and the launch of an NFT for BurgerDAO Contributors.
If you think a million dollars seems like a lot to start a virtual restaurant, you’re right, but the group explains that they might not need everything:
Will it really cost $ 1 million? Probably not. But we know that opening a restaurant is difficult (see above) even with the advent of cloud kitchens. While the DAO will help us make decisions, we’ll be the ones to work with the cloud kitchen, test ingredients, pay for marketing testing, and other administrative expenses. Opening a basic grocery store or pizzeria (brick and mortar location) costs between $ 200,000 and $ 500,000 depending on the location, just to give you a frame of reference.
From there, the group is making plans for a further expansion of its decentralized Ghost Kitchen hamburger franchise, which includes the eventual opening of a brick-and-mortar location in a specific city and the hiring of a full time staff.
On the one hand, the idea of ââa decentralized burger franchise is interesting, but I suspect it won’t be easy to achieve. In explaining the motivation for the concept, the group points to inspiration from MrBeast Burger and companies like Virtual Dining Concepts (the virtual restaurant startup that operationalizes MrBeast) but then asks why an MrBeast or VDC should bring in all the profits? The group goes on to explain that much of its upfront costs will be finding and working with a kitchen operator (this type of work is what VDC does for the MrBeast Burger franchise and its other virtual restaurant concepts).
In other words, BurgerDAO is against the idea of ââcentralized management and gatekeepers, but will likely have to find a group that has relationships with kitchen operators or establish a relationship with and pay a ghost kitchen operator for purpose. lucrative itself.
Nor have they responded to the biggest challenge of virtual restaurants: branding. Top performing virtual restaurants have been able to leverage an influencer reach, or they have already tapped into existing successful restaurant brand like Wowbao. While companies like NextBite have been able to create whole new virtual brands and have a broad reach in multiple markets, they have had a lot of venture capital to fund branding for their concepts.
That said, while the group has a big hill to climb, I’m interested to see if they can make their web3 burger concept come true. BurgerDAO is part of a larger movement in the restaurant and food industry that moves away from traditional operating models, which includes the move towards centralized food production fueled by automation, abandonment from the physical dinner in front of the house and now the adoption of digital concepts based on the web3 and the metaverse.
If you’d like to learn more, attend The Spoon’s Metaverse / NFT virtual mini-event on February 1 (Hurry, the first 400 tickets are free!).