When people talk about the future of non-fungible tokens (NFTs), they often talk about the potential of NFT utility. For those who are not familiar with that facet of NFTs, you can think of utility as the perks that come with ownership.
NFTs, like cryptocurrency tokens, have face value that dictates what they are sold for on NFT marketplaces. But they can also offer NFT utility, which is the term used to describe an added value that is gained by the token holder. For example, many NFTs give their owners voting power that allows them to be a part of decisions made by the organization that issues the token. That voting power is considered a utility that comes with the token.
Chick’nCone, an innovative restaurant chain with dozens of locations around the world, has just dropped an NFT that provides an excellent example of why investors are so excited about the utility component of NFTs. The token is called the Chick’nCoin and it gives owners the opportunity to earn money when new Chick’nCone locations are opened. With the current rates charged for Chick’nCone franchises, that utility can result in Chick’nCoin holders earning tens of thousands of dollars.
As explained on the Chick’nCoin website, each Chick’nCoin represents a unique geographical area. From the looks of the Chick’nCoins that are available on OpenSea, that area is often a county or a collection of counties in the US. With the purchase of the token, the owner is given the right to receive 50 percent of the initial franchise fee of every Chick’nCone restaurant that is opened in that geographical area, as well as 2 percent of the sales within that area, over the next six years.
Presently, the initial franchise fee for a Chick’nCone restaurant is $45,000. Chick’nCone says most of the areas have the potential for three to five restaurants. If the area secured by the NFT already has operating restaurants, the owner begins earning 2 percent of sales, which is paid monthly, immediately. The cost of minting a Chick’nCoin is 3.5 ETH, which provides the buyer with a random geographic region. The cost is $19,500 for those who want to choose the region with which their token is associated.
Chick’nCone has received a lot of attention and awards as a restaurant chain. It has appeared on The Food Network’s The Best Thing I Ever Ate and Carnival Eats and been featured on LADBible, The Weather Channel, Buzzfeed, and Fox News, among others. Most recently it was included on the QSR 40/40 List for 2022, which recognizes brands with less than 40 locations that the magazine believes are poised to be “the next big thing.”
Chick’nCone Co-Founder Jonathan Almanzar says his brand’s mission is to provide a hashtag worthy experience to every guest. One review called the restaurant’s fare “instagrammable and affordable.” But deeper than that is the goal of becoming a tech company that sells chicken. With that goal, entering the world of NFTs was a natural next step.
“We couldn’t help but notice all of the buzz and excitement surrounding the NFT space right now,” says Jonathan. “A forward-thinking spirit is what has really propelled our brand thus far and we were confident that if we established an NFT program of our own, it would successfully take off. We are extremely excited to go down the direction we are headed and can’t wait to hear what people have to say about the opportunities that our new Chick’nCoin has to offer.”
While Chick’nCone’s menu is unique — crispy chicken tossed with sauce and served in a hand rolled waffle cone — Jonathan believes he has a lot of competition.
“Honestly, we are in competition with every single franchise concept on the planet,” he says. “What differentiates us from them is that we are willing to take risks and embrace technology and innovation.”
During the COVID-19 pandemic, Chick’nCone opened 26 new locations. Those who have already purchased some of the 826 Chick’nCoin NFTs that dropped in February are betting that the brand’s recent growth is just the beginning.
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