A hot word in investor markets, getting associated with blockchain in any form can send companies stock soaring. So much so that companies are seeing rapid gains in the stock market even when just incorporating the word blockchain as their brand name. One such example is the Long Island Tea Company, which saw its stock price increasing tri-fold when it rebranded itself to Long Blockchain last month. On similar lines, Chanticleer Holdings, a major restaurant company in the United States, saw its stock value rise by 50% on Tuesday after it announced moving its reward program on the blockchain.
Chanticleer Holdings is the owner of several burger brands operating in the United States. It also operates hundreds of Hooters restaurants in the country and is also a minority stakeholder in Hooters of America. Hooters of America is the parent company of Hooters chain of restaurants.
“Eating a burger is now a way to mine for cryptocoins. Mobivity Merit is real cryptocurrency, leveraging the same infrastructure and principles of Bitcoin, Ethereum, Ripple, litecoin”.
The restaurant company has partnered with Mobivity for the blockchain venture. According to Dennis Becker, the CEO of Mobivity, this partnership would ensure that eating burgers would become a way to generate cryptocurrency. He further states that every meal consumed in Chanticleer’s restaurants would accrue value for the consumer which could be used for future meals or can even be traded with other consumers.
The blockchain based technology, named Mobilvity Merit, would leverage the same technology as that of Bitcoin and other cryptocurrencies, according to Chanticleer CEO Michael Pruitt. The technology would allow consumers to transfer their reward points among different restaurants. It would also help companies track consumer preferences as well as help them provide a higher degree of personalization.
This announcement led to the rise of Chanticleer’s stock value significantly. Prior to the announcement, the total market capitalization of the company was around $8 million. Post the blockchain announcement, the total market capitalization of the company touched a high of $12 million.
Chanticleer Holdings expects to roll out blockchain technology in all its restaurants before the end of this year.