I'm not going to pretend that I have any idea what it feels like the morning after you drop a bar tab with four or five digits in front of the decimal point. I imagine it feels something like leaving your wallet on the bus and then watching that bus drive off the side of a cliff and explode into flames as it hits the ground. Plus a headache.
But for those in Chicago where bottle service, VIP tables, and four-course meals are a weekly occurrence, there is about to be an app that will reward your opulent lifestyle.
The Luxward app is a rewards program for Chicago's "social elite" that gives luxury rewards for spending big at some of Chicago's hottest nightclubs, bars and restaurants.
The more you spend, the more lavish the rewards can be, which range from designers shoes to a first class flight to Las Vegas to a ride in a private jet, according to founder Phil Castro. The Luxward website launched July 4 and the iOS version of the app will be available in late August, with the Android app following 2 or 3 weeks later.
Castro compared his company to an arcade store. You pay for tokens, play the games, win tickets, and trad them in for small prizes.
"Now we’re talking big boy money though," Castro said. "Those prizes aren’t bullshit prizes anymore. They’re not $4 teddy bears made in China. These are Gucci shoes coming to you. A first class trip to Vegas coming to you. This is meeting Jamie Foxx coming to you."
That assumes a couple things. 1) Jamie Foxx will meet you for a price, and 2) you've spent enough money at Chicago nightclubs to earn that reward. It works like this: You sign up for the free Luxward rewards program, linking your debit or credit card to your account. Then spend money at Luxward's select establishments and accrue points as you spend. To earn enough points for the flight to Las Vegas, for example, you would need to spend roughly $15,000, Castro said. Rewards can be redeemed as you choose, and range from $200 retail items up to the $27,000 private jet.
"Is anyone going get the private jet? I’m not sure," he said. "I hope so. But I’m putting it out there to let people know that the sky's the limit. It all depends on what the person is spending per year."
Castro has spent 10 years in the nightclub and restaurant business in Chicago, six of those years running his own promotions and events company. Luxward has already partnered with seven Chicago establishments and plans to add roughly 15 more by the iOS app launch. By August Castro hopes to have businesses like Siena Tavern, The Mid, Rockit Bar and Grill, The Underground, and Public House, among others.
"These are top-tier places. Trendy places," he said. "These are the places you read about in US magazine. This is about quality rather than quantity."
Castro makes roughly 10 percent commission from the transaction, part of which he sets aside for your rewards. If you spend $100 at dinner and $1,000 on bottle service at a nightclub, Luxward nets $110.
"If you spend $30,000 I’m going make $3,000 to 5,000 off of you, and I’m going to be giving you a $400 to $700 gift, depending on what you pick," he said.
Luxward's target market is pretty obvious: The 25-40 River North crowd that has some disposable income and loves to go out. Luxeward's business plan is the anti-coupon model. The company isn't targeting businesses interested in advertising discounts and it's not for customers who want to look cheap.
"Don’t get this confused with a loyalty program, because that's not what it is," he said. "This whole concept is really going against the Groupon market ... Forget saving 30 percent. Let's just spend the money we’re going to spend, and I'll even encourage you to spend even more, but I'll take some of your money and I’m going to start your own fund to fund your luxurious desires."
Luxward will also offer a users personal concierge who will answer any questions about nightlife in Chicago, recommendations on what establishments are popular on certain days, a texting feature for the user to communicate with nightclub staff, and a "clout feature" that informs the staff what kind of spender you've been in the past. This feature is particularly useful for finding a last minute VIP table reservation, Castro said. If the Luxward user has spent $47,000 throughout the year at partnering venues, the staff can see that on the app, resulting in that person being more likely to get the reservation than someone who's spending history isn't being tracked.
The app is also a potential money saver, believe it or not, as it comes with a feature that shows the cost of real-time table reservations, which often come down in price on slower nights.
If Luxward is successful in Chicago, Castro hopes to expand the business to other markets like New York, Los Angeles and Miami, where reward points would be transferable between cities. So far Castro has paid for Luxward on his own thanks to the success of his promotions business, but he said he may look into outside funding down the road.
"This industry is a good industry to be in. It's fast money if you know what you’re doing."
