It’s no secret that guests are seeking unique experiences when they dine out. To meet this demand, bars and restaurants have offered memorable encounters through design, LTO offerings, games and activities, and special cocktail and food menus. But there’s one model that’s been growing—private membership clubs.
“I believe that after the confinement caused by the pandemic, people want to socialize and interact with each other in places that are different and have more to offer than traditional hospitality venues,” says Spiritus Law Founding Attorney & Team Manager - Alcohol Industry Group Robert Lewis. “Patrons are seeking the personal and exclusive experiences that private clubs offer their members.”
In private membership clubs, patrons must become members to gain access. These exclusive experiences provide the highest levels of service, opportunities for socialization, and access to special menus and events.
“Private clubs focus on exclusivity and cater to an image,” says Lewis. “Private clubs are attracting patrons that want more intimate settings away from crowds. Private clubs are usually highly themed and cater to a particular segment of the community so there are a variety of options.
“Service is typically more hands-on in a more relaxed setting while food and beverage options tend to focus on higher-end brands and crafted pairings. Private clubs are also known for hosting more special and themed events for members. Public clubs tend to cater to the masses with more generalized and mainstream offerings.”
Chubby Cattle
An example of the exclusive experiences private membership clubs offer is in Chubby Cattle’s model. Chubby Cattle started in 2014 with the intention to provide a luxury hot pot experience to mainstream markets. Their first location, Chubby Cattle Las Vegas, opened in 2014. They now have over 10 restaurants within the Chubby Cattle brand throughout the United States: The X Pot, Niku X, Wagyu House, Mikiya Shabu Wagyu House, and more.
Recently, Chubby Cattle became one of the first restaurant groups in the world to offer a digital dining membership that utilizes non-fungible tokens (NFTs) and blockchain technology. In layman’s terms, an NFT is a unique digital identifier that can be anything—artwork, music, etc. Thanks to the blockchain—a system of recording information in a way that makes it nearly impossible to change, hack, or cheat the system—an NFT is a great way certify ownership and authenticity because it can’t be copied, substituted, or subdivided.
Why NFTs? Chubby Cattle has always been interested in using technology to further its dining experiences. “Chubby Cattle is committed to incorporating innovative technology and high-quality ingredients at an affordable rate for everyone,” says David Zhao, founder & managing partner of Chubby Cattle. “We have always been dedicated to elevating traditional dining concepts from implementing robot servers to projection mapping to refrigerated conveyor belts. We have been fortunate enough to open several portfolio brands with varying types of experiences.”
According to the website, the Chubby Cattle NFT Collection offers, “a high level of utility for holders, ranging from unlimited access to exclusive delicacies through priority reservations, discounts, and private events.” The NFT program is available at all 10 existing Chubby Cattle locations and includes a silver and gold tier with increasing benefits. After a patron obtains one of these NFTs, they can buy into the limited black tier, which includes an unlimited tasting menu among other benefits. All tiers touts free food for life, and a member just has to show staff the NFT to unlock their benefits.
“We wanted to move to a web3 format so that our members could have a transferable membership product that works when visiting any of our locations and contains benefits for life,” says Zhao. “We are excited about offering real-world benefits in a digital format in a way that hasn’t been done before.”
It’s all very high tech, but at its heart, Chubby Cattle’s program is about providing its customers with an exclusive experience. “Rewarding our customers for their loyalty is incredibly important to us,” says Zhao. “We would only be doing this if we felt there was enough interest in our loyalty club NFT. Chubby Cattle started with a mission to innovate on traditional Asian cuisine. The Lifetime Chubby Cattle Membership rewards our most loyal fan base and also creates a stronger sense of community for our customers. As we grow, the community of loyal fans (Chubby Cattle NFT Holders) will grow alongside us.”
Setting Up a Private Membership Club
Spiritus Law’s Lewis says it’s possible for a traditional restaurant or bar to become a private club or to set up one (a la Chubby Cattle), but “there may be limitations as a result of the size and space of the traditional venue and its ability to offer unique services and customer experiences.”
Aside from possible space constraints, the licensing can differ as well. “Private clubs that have alcoholic beverage licenses are subject to the same laws and regulations as traditional bars and restaurants, but the licensing process can be different,” explains Lewis. “The type of use approvals required for private and public clubs vary between municipal jurisdictions. Private clubs also have to adhere to their membership rules, which can include payment of annual or monthly membership dues as opposed to cover charges. One area where there are usually significant differences is in the admission process as well as whether guests are allowed.”
And while NFTs are certainly not the only way to offer membership to a private club, Zhao believes they are expanding, “If other restaurants are interested in building a loyalty program, blockchain should be at the forefront of their strategy.”
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