How this M’sian steakhouse’s ‘dinner to win’ NFT concept aims to build customer loyalty

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Businesses typically use loyalty programs as discount programs or re-engagement tools. These usually come in the form of apps or membership cards, but a Malaysian restaurant brand has decided to take advantage of the rise of NFTs and their usefulness instead.

Called AD Butcher & Steak, it is a family owned steakhouse in Bukit Jelutong, Shah Alam which was established in 2020.

The initials “AD” represent the founding family of the company: Adni (the family name of the founder), Adnan (the founder) and Adam (the son of the founder).

Adnan, who is also the company’s general manager, started his journey in 2013 selling homemade burgers from a small kiosk.

Then he decided to take a road less traveled in Malaysia by investing in halal steaks, especially dry-aged steaks, which have a more beefy flavor and a more tender, buttery texture.

The founder of the steakhouse / Image credit: AD Butcher & Steak

Transition to an NFT Restaurant

It wasn’t until 2020 that the company’s founders decided to explore the digital realm. To do this, they recognized the need for a specialist in establishing an online presence.

A marketing manager, Omar, was hired to create the brand’s website to facilitate the reservation process, provide menu views and deliver steak-related blog content.

“During MCO, we created our own online store to facilitate pickups and delivery services without having to rely on food apps,” the distributor said. “We started our digital marketing journey using Facebook/IG Ads and Google Ads to drive traffic to our platforms and eventually acquire new customers.”

When the concept of the metaverse became popular two years later, Omar observed a significant gap between the physical and digital worlds. Being an NFT enthusiast himself, he realized he could connect NFTs to both worlds. “Even the biggest Malaysian NFT projects lack connections to the real world,” he said.

Omar convinced the management team that NFTs could help Ad Butcher & Steak gain more traction and retain existing customers through a loyalty program, and he started working on the project.

Partnership with local artists

The F&B outlet has teamed up with local NFT artists from the Malaysian NFT marketplace, Pentas.io. Artists’ custom works are framed and hung on walls for aesthetic and promotional purposes.

The interiors of the restaurant / Image credit: Ad Butcher & Steak

To date, AD Butcher currently has seven partners. Some of the best known artists are Roach Punks, Catverses and Rich Cats Nation.

The NFT artists present at the launch / Image credit: AD Butcher & Steak

The brand uses a “dinner to win” concept and NFTs work as a rewards system. When customers dine, they receive an NFT. This specific collection cannot be purchased directly from AD Butcher & Steak.

Once they own the NFT, they can either keep it and keep collecting more NFTs each time they dine until they can redeem the final reward on their 8th visit, or choose to sell it to another user on Pentas for a profit.

When dining at the restaurant, NFT holders are entitled to a 15% discount on the total menu price. To verify ownership of the digital artwork, the F&B outlet uses QR codes through a third-party tool, Summerwatch Technology.

Reward loyal customers

To claim AD Butcher & Steak’s free NFT, customers must dine, create a wallet through MetaMask, scan the QR code, and paste the wallet address into the submission form. The marketing manager will then personally deliver a random NFT artwork to the user within 24 hours.

Customers scanning the QR code to claim the free NFTs / Image credit: AD Butcher & Steak

“We created our NFTs to look like our food menu,” Omar explained. “The first batch is 500 NFT Steak Platters. Each NFT bears our brand logo, the type of meat we use (Grain Fed, Angus, Wagyu) and the different cooking styles we have (Rare, Medium, Medium Well and Well Done).”

According to Omar, their most popular NFTs fit the popular steak classifications: Wagyu, Golden, and Medium Rare/Cooked. At the other end of the spectrum are well-done, grain-fed steaks, which are the least expensive types of steak.

The brand’s NFT compared to its signature dish / Image credit: AD Butcher & Steak

On the first visit, diners will receive their first NFT. As one moves up the loyalty ladder, more perks will be granted.

For the second and third visits, customers can claim a free side dish and beef burger respectively, in addition to an NFT at each level. Based on the program, loyal customers can redeem their final reward on their eighth visit: a barbecue rib dish worth RM139.

The reward system / Image credit: AD Butcher & Steak

Alternatively, instead of eating each time, individuals can simply purchase seven NFTs from other customers on Pentas to achieve desired levels and redeem their rewards.

The AD Butcher & Steak team felt that depending on the price of NFTs sold by other customers, it may be a cheaper option than eating every time to move up the loyalty ladder.

Due to high gas costs to mint digital tokens, the company is currently not profiting from its NFT project. Instead, the founders intend to profit from secondary market sales once their NFTs have been distributed by NFT owners.

AD Butcher & Steak also intends to generate revenue by auctioning off its NFT partners’ custom artwork (in a separate collection from the up for grabs restaurants), and the NFT issuer would receive royalties on each sale.

The different versions of NFTs on Pentas.io

For the long term

We asked the marketing manager if the NFT project is a temporary addition to the restaurant, as some business owners implement new trends seasonally. “We are here to stay,” he told Vulcan Post.

The founders are also interested in establishing a second outlet somewhere in Kuala Lumpur, although they did not reveal the exact location.

It’s likely that the new outlet will also implement this dine-in-to-win concept, and it’s one way AD Butcher & Steak stands out among the other ways companies have jumped on the usefulness of NFTs.

In the F&B space, another business we recently featured using NFTs in its own loyalty program is MyeongDong Topokki’s NFT Restaurant in Genting Highlands. Instead of a dinner-to-win concept, customers can simply purchase the NFTs directly and then enjoy the benefits at the Genting outlet exclusively.

These are just two of many applications of the utility of NFTs across industries, and with Miss Universe Malaysia recently revealing her own collection of NFTs to use as a voting mechanism, it would be interesting to see how NFTs can continue to be used. In the coming months.

  • Learn more about AD Butcher & Steak here.
  • Learn more about our NFT content here.

Featured Image Credit: AD Butcher & Steak

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