Web3 Food Crash: Bored & Hungry Closes, Starbucks Odyssey Bites the Dust

From its initial success to its eventual closure, Bored & Hungry represented the surge of Web3-inspired ventures in the culinary realm. Despite enthusiasm during the NFT boom, several similar projects, including Starbucks' Odyssey loyalty program, celebrity chef collaborations, and ambitious DAOs, have faced setbacks or shut down. While businesses like Blackbird and Flyfish continue to adapt, major brands like Starbucks remain hesitant about further Web3 adoption. The future of Web3 in food remains uncertain, with some holding out for long-term viability while others acknowledge the need for patience and strategic pivots.

The Rise and Fall of Web3 Food: Bored & Hungry Closes, Starbucks Abandons Odyssey

In the ebullient aftermath of the 2021 NFT boom, the culinary industry embraced the transformative potential of Web3, seeking to bridge the digital and physical realms of dining. However, two years later, the landscape has shifted dramatically.

Bored & Hungry's Demise

In March 2022, amidst the hype surrounding Bored Ape NFTs, investor Andy Nguyen opened Bored & Hungry, a burger joint inspired by the iconic digital collectibles. The restaurant's initial success was undeniable, with lines stretching around the block.

But the euphoria proved short-lived. Last week, Nguyen announced the closure of the original Bored & Hungry location in Long Beach, California. The restaurant has sold its concept to HUNGRY Dao, a branding and franchising company from Asia.

A Trend in Retreat

Bored & Hungry was not alone in its foray into the Web3 space. Numerous restaurants, chefs, and corporations launched initiatives to connect their food businesses with digital assets. However, most of these ventures have since shut down or scaled back.

Starbucks Odyssey Fails

Starbucks, one of the most prominent names in the industry, recently announced the closure of its Web3 loyalty program, Odyssey. The program, launched with great fanfare, aimed to reward customers with digital experiences and rewards. However, Starbucks has decided to abandon the project, signaling a shift in the company's priorities.

Other Failed Projects

Similar stories have played out across the industry. Tom Colicchio and Spike Mendelsohn's CHFTY Pizza NFT project, promising exclusive perks and events, has become inactive. Old-school home appliance brand Crockpot's commemorative NFT has failed to attract any offers. And even group projects like FriesDAO, which raised $5 million, have been thwarted by devastating hacks.

Signs of Hope

Despite the string of failures, not all Web3 food ventures have faltered. The coffee subscription site Bored Breakfast Club remains operational. Flyfish, an NFT membership dining club, is set to open this summer, although it will also offer a non-NFT membership option. And Eater and Resy founder Ben Leventhal's Blackbird NFT loyalty program has experienced early success.

The Future of Web3 and Food

With the dust of the first Web3 wave now settling, it remains unclear whether the enthusiasm for digital assets and blockchain in the food industry was more hype than substance. Some experts believe that the ventures that have succeeded have done so by enhancing consumer benefits without demanding significant behavior changes. Others, like Flyfish, have demonstrated the ability to pivot and adapt to changing market conditions.

Big brands like Starbucks, however, may be more hesitant to reinvest in Web3 initiatives. The company's decision to abandon Odyssey is a clear indication that it does not believe digital assets are essential for unlocking significant consumer value.

A Long-Term Game

Despite the recent setbacks, some companies remain optimistic about the long-term potential of Web3 and food. Geoff Alexander, CEO of Wow Bao, believes that adoption of new technologies takes time. If he is right, companies that stick it out for the long haul may eventually reap the rewards.

However, it is important to acknowledge that the future of Web3 and food remains uncertain. The industry is still evolving, and it is too early to tell whether digital assets will ultimately play a significant role in the culinary experience.