Local Search Reinvented: LuckyDiem Gamifies the Restaurant Business
What happens when you combine local search, slot-machine psychology, and a cause bigger than yourself? LuckyDiem tried exactly that — turning restaurant discovery into a game where everyone wins.
This guest post, originally published on the LuckyDiem blog, examines how gamification principles can transform how people find and support local businesses.
Table of Contents
- About Yu-kai Chou
- Supporting Local Businesses and Fighting Cancer
- How LuckyDiem Works
- Win Discounts Through Engagement
- Win Prizes From Every Business
- Win Mega Jackpots
- Mobile Payments Without the Hassle
- Not All Leaderboards Are Created Equal
- Sharing Really Is Caring
- Octalysis Analysis: Why LuckyDiem’s Design Works
- About Andrew Landis
Author Credibility: Yu-kai Chou
Yu-kai Chou created the Octalysis Framework after studying gamification since 2003 — years before the term entered mainstream vocabulary. As a Human-Systems Architect & Behavioral Designer, his framework has been applied by LEGO, Microsoft, Porsche, Coca-Cola, Salesforce, and MrBeast, impacting over 1.5 Billion Users.
Chou has taught the Octalysis methodology at Harvard, Stanford, Yale, Tesla, Google, BCG, and IDEO.
His work has been cited by Harvard, Stanford, MIT, Forbes, Wall Street Journal, Wired, US Department of Energy, NIST, NSF, NCBI, US Department of Education, ClinicalTrials.gov, and Google Scholar — with 3,700+ more academic publications. Explore his books here.
Supporting Local Businesses and Fighting Cancer
Imagine if Google or Yelp added unique discounts and prizes to every one of its business listings.
Imagine a simple way to not only support local businesses, but help support the fight against childhood cancer as well.
You might wonder how it’s possible to offer a service that helps save you money while helping so many others — that is absolutely free and fun to use. Welcome to LuckyDiem.
How LuckyDiem Works
There’s no need to download an app. Simply go to LuckyDiem.com and search for what you’re looking for by either category or by “What’s Nearby.”
Every business on LuckyDiem offers you a chance to win discounts and prizes. Take a spin on the business’s virtual slot machine to see if it’s your lucky day.
Win Discounts Through Engagement
Most businesses on LuckyDiem offer three levels of discounts — each one somewhat dependent upon your level of engagement.
The lowest level discount can be won simply off a spin of the slot machine. This discount can then be increased by answering a trivia question about the business.
The third and highest level of discount is awarded to users who share their good fortune with their friends on social media.
Sharing your reward is actually a three-way win on LuckyDiem because it: 1) enables you to earn the highest level of discount, 2) helps get the word out about the local business you like, and 3) supports the fight against childhood cancer.
Win Prizes From Every Business
With LuckyDiem, you have the chance to instantly win small prizes from all businesses — free drinks, gift cards — as well as entries into a business’s jackpot prize that is won by a user every three months.
Some businesses in their Manhattan launch market offered amazing prizes such as a free CoolSculpting session at SkinTheraP Medical Spa (valued at $750) or a $500 Gift Card for Invisalign services through Dr. Michelle Katz.
Win Mega Jackpots
LuckyDiem levels the playing field for local businesses to compete with national brands that can afford promotions with expensive prizes.
Even the smallest business on LuckyDiem can offer its customers chances to win VIP tickets to sporting events and concerts.
There’s no purchase necessary, but being a good customer that makes purchases and shares with friends will increase your chances of winning. Like business jackpots, the Mega Jackpots have winners every three months.
Mobile Payments Without the Hassle
Mobile payments are the wave of the future — super convenient for consumers, but expensive for small business owners to implement.
LuckyDiem introduced a mobile payment solution that allows users to pay with their phones at any participating business and immediately receive the discount they’ve earned from playing. The technology works without any new hardware or software, so business owners don’t have to change a thing.
Not All Leaderboards Are Created Equal
Many users loved Foursquare (now Swarm) for its leaderboards. The competition to become mayor of favorite spots created real engagement — that feeling of being recognized as a business’s “best customer.”
But then something strange started happening. Rather than being welcomed by management, Mayors were given the cold shoulder. Some were plainly asked to leave.
It turns out, not all Mayors are created equal. Many had acquired their badge simply by checking into a business without ever spending a dime — they had gamed the system.
This is a classic failure of Core Drive 2: Development & Accomplishment design. When the metric being tracked (check-ins) doesn’t align with the actual value being created (purchases), the entire system breaks down.
LuckyDiem addressed this by rewarding users based on their true value to a business — the purchases that you make and the ones your friends make because of your referrals.
Businesses can view their leaderboard and know exactly who their best customers are (Sharks and Whales in LuckyDiem’s world), with no confusion from lame duck mayors. The higher you are on a leaderboard, the more perks you receive — more spins to win prizes from businesses and from LuckyDiem itself.
Sharing Really Is Caring
LuckyDiem makes it easy for you to not only save money, but save lives. With every reward that is shared, LuckyDiem makes a contribution to Hope & Heroes, a nonprofit that funds life-saving work on childhood cancer and blood disorders at Columbia University Medical Center.
This connection to a larger cause transforms a simple discount-sharing action into something with Epic Meaning (Core Drive 1) — the feeling that you’re part of something bigger than yourself.
Octalysis Analysis: Why LuckyDiem’s Design Works
Analyzing LuckyDiem through the Octalysis Framework reveals a surprisingly well-rounded activation of multiple Core Drives:
- Core Drive 1 (Epic Meaning & Calling): Every shared reward supports childhood cancer research through Hope & Heroes. Users aren’t just saving money — they’re fighting cancer.
- Core Drive 2 (Development & Accomplishment): The three-tier discount system (spin → trivia → share) gives users clear progression milestones. Climbing the leaderboard to “Shark” or “Whale” status adds a meaningful achievement layer.
- Core Drive 4 (Ownership & Possession): Earned discounts feel like personal property. The leaderboard position at each business becomes “your” ranking to protect and grow.
- Core Drive 5 (Social Influence & Relatedness): Sharing rewards on social media benefits you, the business, AND charity — creating a positive-sum social dynamic. Your friends’ purchases boost your own standing.
- Core Drive 6 (Scarcity & Impatience): Jackpots are awarded every three months. Limited-time prize windows create urgency to play now rather than later.
- Core Drive 7 (Unpredictability & Curiosity): The virtual slot machine is pure variable reward — the same psychological mechanic that makes mystery boxes compelling. You never know what you’ll win.
What makes LuckyDiem’s approach notable is how it corrected Foursquare’s fatal design flaw: tying achievements to actual value creation rather than vanity metrics. When your leaderboard position reflects real economic contribution, both businesses and customers benefit.
Editor’s note (2026): LuckyDiem has since pivoted from a gamified local search platform to a card-linked offer advertising network. The gamification mechanics described above reflect its original design, which remains a valuable case study in applying behavioral design to local commerce.
About Andrew Landis
Andrew Landis is the founder and CEO of LuckyDiem. Between 1992–1998, Andrew was a Senior Analyst at Sony, responsible for identifying, incubating, and launching new businesses. He was a key advisor on many of Sony’s digital initiatives including the launch of Sony.com.
Related Reading
- The Octalysis Framework for Gamification & Behavioral Design
- What is Gamification?
- How to Design Effective Leaderboards
- Top 10 eCommerce Gamification Examples
- Is Google to Blame for the Decline of Small Business?
- Books by Yu-kai Chou