Collision 18: Share Drinks With Friends, Regardless Of Your Location
Over the last decade we’ve seen a handful of good ideas that bridge the tech world with alcohol, and we’re not just talking about startup offices with a Kegerator in the back. We’ve seen startups that help people earn free cocktails. Last year at Collision we saw a startup that aimed to give away alcohol for brands. We’ve even seen startups that allow people to buy other people drinks from anywhere with an internet connection. But they’ve all seemed to come up short.
Eager entrepreneurs hope to get into the alcohol space because it immediately resonates with their target audience. What most of them find out though, is that the alcohol space is heavily (and we mean heavily) regulated when it comes to promotions and what you can and can’t say. The other part of the liquor mantra that entrepreneurs have to tackle is building scale. Bars compete to keep people in their establishment and paying for drinks. If there are no people or people aren’t paying for drinks, bars don’t make any money. As to scale, consider Austin Texas where South By Southwest is being held this week. Downtown Austin has the highest amount of bars per capita in a four block radius with 88. That’s a bar for every 76 people based on population.
Until a startup realizes that they must, play by the rules and they have to keep patrons in the bar and drinking, they’ll fail at the alcohol/liquor game. “When it comes to the liquor license there’s no grey area, period” an executive with a nationwide bar chain told us. The liquor license is what keeps the money flowing. Bars run razor thin margins as it is and even a two day shutdown during an ABC investigation, in most states, can effect the bars bottom line for a month.
These are the reasons that social/liquor startups are the fastest to shut down, according to data from Crunchbase. But there’s hope, and that hope is in DrinkCoin.
DrinkCoin is a startup built on blockchain and crypto principals and following the pay it forward idea that so many of us have experienced. You know when you’ve gone to Starbucks on the way to work, to get to the window and find out that your drink has been paid for by the guest in front of you. Nobody wants to be the douchebag that breaks the chain so you just keep paying for the person behind you. But inevitably, someone does break the chain. As people pay, or in DrinkCoin’s case, pour it forward, they earn DrinkCoin for the next round. The company says that if you go to a bar or bar hopping, with a group of friends on the platform, you may pay for the first round and then drink free the rest of the night. Their system is keeping track of all the transactions.
The fun isn’t relegated to the local bar though. Say you’ve got an old college buddy celebrating their 30th birthday. Sure all of their local friends are going out together but the remote friends can participate in the same party via DrinkCoin. Buy a round of shots for all the friends in the birthday party DrinkCoin group regardless of where they are physically drinking and you’ll get yours back ten fold with every round.
DrinkCoin is also part social network as who doesn’t want to show off having fun and drinking.
DrinkCoin is keeping patrons in the bar drinking longer because each of the patrons in the specific DrinkCoin circle are basically paying for just one round each and they’re all drinking all night. The establishment is getting their full value for every drink being consumed. Happy bar happy guests.
Establishments are also getting referral customers that can be thousands of miles away. They’re also streamlining their promo process (where they can use their own approved and compliant promos), checkout processes even food sales.
You need to pay attention to DrinkCoin because they’ve set themselves up to be the one social alcohol startup that actually survives.
See it for yourself at The Collision Conference in New Orleans, April 30-May 3 and bookmark drinkcoin.tech to stay updated with their progress.