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Pair pioneers virtual currency, blockchain tech model for restaurants

The new "FudiToken" gives QSR customers a convenient way to pay for orders, while giving operators a new approach to menu item promotion.

Photo courtesy of iStock.

March 16, 2018 by Elliot Maras — Editor, Kiosk Marketplace & Vending Times

The new Fudi app for iOS and Android not only helps QSR operators give customers a quick palm-of-the-hand tool to access brands' menus and promotions, but also offers a versatile virtual currency token to make transactions happen conveniently and quickly. The app is the creation of South Florida tech entrepreneur Nizar Lavji and is now up and running for both iOS and Android with several restaurant brands. 

Nizar Lavji plans to offer virtual currency for foodservice and a blockchain based food supply chain

The app's so-called "FudiToken" is a convenient, virtual way to pay and the result of nearly three years work on the part of Lavji, with the support of co-founder Alex Barenboim. The two could ultimately be among the first innovators to bring virtual currency and blockchain technology to foodservice.

A food-centered virtual currency moves ahead

Virtual currency is not completely unknown in the foodservice industry. A handful of food trucks and trailers accept bitcoin, the leading virtual currency, as do many restaurants.

Lavji's concept, however, is to create a virtual token that foodservice providers will use as an alternative payment form that capitalizes on convenience and offers a nice perk of critical customer data. For customers paying for their orders or any portion of them with FudiTokens, the virtual currency can then be used to take advantage of restaurant promotional discounts.

Lavji said customers will pay a fee for transactions, though the exact amount is still undetermined. Likewise, if customers using FudiTokens attempt to do so with operators who don't accept them, the new app can convert that token's value into regular currency.  

One of the over-arching ideas behind this approach is that as use of FudiTokens grows, the Fudi ecosystem will expand to include food purveyors in addition to restaurant brands. Restaurant operators can then use the tokens to purchase their own food and restaurant supplies. 

Virtual tokens with a long-term supply chain focus 

Fudi will start offering virtual tokens to the public on its website in June, Lavji said. Tokens can be purchased with traditional currency or via these four top cryptocurrencies: bitcoin, Ethereum, Litecoin and Bitcoin Cash. The exact cost of each FudiToken is still be determined. But, the tokens will become more valuable if Lavji's plan for a blockchain-based food supply chain comes to fruition. 

"Since the token will have a value out there in the marketplace, they can trade it for any other services they need."

Blockchain technology —in addition to providing the infrastructure for virtual currencies — also brings new efficiencies and transparency to numerous industry supply chains. In this respect, Lavji is not the first entrepreneur attempting to create a blockchain based food supply chain. 

The advantage of the blockchain behind the system is, among other things, that by digitally recording the identity of goods, a blockchain can provide a permanent, immutable record for every food ingredient as it travels from farm to table. This transparency gives processors, wholesalers, distributors, restaurateurs, food trucks and consumers information about where their food comes from, how it was processed and a full accounting of its movement along the supply chain.

In an industry rife with both food safety threats and an ever-increasing demand for business data, that's a commodity with its own real value. Likewise, once a food supply chain is established on a blockchain, it will be easy to use virtual tokens to pay for things within that supply chain.

"Since the token will have a value out there in the marketplace, they can trade it for any other services they need," Lavji said. "The idea is to make it (the FudiToken) ubiquitous." 

Ultimately though, FudiToken's success depends largely on the number of people and businesses accepting the currency. That requires a strong, innovative market effort. 

One step at a time though ... 

But, Lavji's first order of business is establishing use of the Fudi app with food trucks. In this respect, Lavji said venues that move or have other ongoing operational shifts are especially well suited since these "rolling businesses" constantly need to keep customers updated on their whereabouts. That's something the Fudi app is especially adept at accomplishing. 

"It's like an Uber for food trucks," Lavji said. 

The app also provides useful data to foodservice providers since Lavji — who has an extensive software background —is developing reports from data on subjects like the types of foods popular in a specific area and traffic patterns at specific restaurant locations. 

At the time of this report, Lavji said there are about two dozen foodservice providers using the app in South Florida, as well as a few in Chicago.

Though Lavji did not disclose the level of his investment in Fudi, he did credit his tech, marketing and event planning teams with helping make the app a viable tool. Only time will tell whether the app gets widespread pick-up, but the tool and the currency ideas behind it certainly offer a new efficient, data-rich way to pay for the food QSRs and other restaurants bring to the table. 

A version of this story originally appeared on sister site, Food Truck Operator.  

About Elliot Maras

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Elliot Maras is the editor of Kiosk Marketplace and Vending Times. He brings three decades covering unattended retail and commercial foodservice.