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There’s no such thing as a free lunch, the adage goes. So, I set out to find out if there’s a such thing as a 99.95%-free lunch.
Chipotle announced its latest promotion on Tuesday, apparently inspired by one of the worst puns in crypto. In honor of Ethereum’s merge, which saw the blockchain move from a proof-of-work consensus mechanism to proof of stake, Chipotle said it would be offering a steep 99.95% discount—the estimated reduction of Ethereum’s energy consumption—if customers paid in ether. The name of the deal, of course, was “proof of steak.”
The strange corner of Twitter populated by crossover crypto enthusiasts and office-friendly burrito fans rejoiced, with one user—Dick Pic NFT collector—posting just a few hours after Chipotle’s announcement that they had secured their bowl. (Others warned of the consequences of consuming said bowl.)
Putting my stomach on the line, I decided to put my (Fortune’s) money where my mouth is.
The obstacle to using cryptocurrency as actual currency is making it user friendly, which has proved a challenge. To facilitate ETH-powered transactions, Chipotle partnered with the digital payments company Flexa, the maker of an Android and iPhone app called SPEDN.
Unlike other crypto wallets, SPEDN doesn’t allow users to buy crypto using a bank account—the only way to deposit ETH is to transfer it from another wallet. So, I opened my Coinbase app and copied in the address, sending $1.50 in ETH over to SPEDN (with an additional network fee of 45 cents, or about 30%).
Fearful of holding up the line, a ravenous lunch mob snarling behind me, I began making the transfer before heading out—some 15 minutes later, still safely sitting in the Fortune office, the $1.50 popped up in my SPEDN account. Thankfully, I didn’t wait.
There are two Chipotles near our New York headquarters, so I had two shots to pull this off. The first was closed for private catering—what happened to the blockchain not having business hours?—but the second, luckily, was open, and still quiet ahead of the lunch rush. I spotted a few suited men at tables hunched over their burritos.
Chipotle, for those not familiar with the fast-casual burrito factory, functions as a kind of assembly line—you place your order and choose your toppings as you move down the queue, not reaching the cashier until the end. There was no opportunity to confirm I could pay in ether before having to try, but I rolled the dice, assuming my order would be 99.95% off and opting for the fancy new guajillo steak ($2 extra) and guacamole ($3 extra).
When the fateful moment arrived and I asked if I could pay in ETH, the cashier, as expected, answered blankly that she had no idea what the hell I was talking about. With mounting embarrassment, I showed her Chipotle’s tweet thread as the line behind me stacked up. She called over her manager, who also hadn’t heard of the promotion, but who did have the foresight to realize there was probably a QR code within the SPEDN app. We pulled it up and scanned it with Chipotle’s POS system.
“The card number entered does not match any card type configured on the system,” the screen read.
I pulled out my credit card, but the bemused cashier told me to just take the burrito bowl and leave, despite my protestations. I shuffled on, clutching my brown paper bag.
The fact that big brands like Chipotle are touting ether as a form of payment and highlighting the technical feat that is the Ethereum merge demonstrates how much cryptocurrency has gone mainstream—or at least attempted to. Chipotle is not alone, either. Just after the successful merge in mid-September, Budweiser tweeted “This Bud’s for the Merge,” showing a customized can emblazoned “Beer.eth.”
The gap between the PR efforts and reality is just as telling. Brands try to capitalize on the virality around cryptocurrency, but they hit the same stumbling blocks as everyone else—bad execution and hype that trumps practicality.
Chipotle said it would honor the ETH deal for the first $20,000 spent. As one user on Twitter pointed out, this promotion was likely just a $20,000 marketing campaign by the little-known Flexa. And in my case, the technology didn’t even work. And it cost this one restaurant about $18.
I strolled back to the office. On Wednesdays, Fortune staffers are very generously provided with free lunch. On today’s menu? Chipotle.
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