The companies are using the SCVNGR application to attract consumers to their restaurants with challenges that let them earn points and unlock rewards. Boston and Philadelphia businesses are also working with SCVNGR to roll out rewards.

“People play SCVNGR by going places, doing challenges and earning points,” said Seth Priebatsch, CEO of SCVNGR, Boston. “They share where they are and what they’re up to at those places with their friends on Facebook, Twitter and SCVNGR.

“Sometimes, they’ll visit places that have rewards and then, when they earn enough points, they can unlock those awesome rewards,” he said. “Rewards can be anything from merchandise and discounts at national brands and retailers or, like free coffee and discounts on restaurant bills.”

The SCVNGR application is available for iPhone and Android platforms. It can be downloaded for free in Apple’s App Store and Android Market.

SCVNGR hunt
San Francisco small business owners have installed rewards into their geo-location data across the city and are using SCVNGR signage and swag so consumers are aware of the rewards and discounts.

Nick’s Crispy Tacos is challenging its customers.

The company is asking participants to tell their Facebook friends about Nick’s Story Challenge and get a free taco.

Here is a screen grab of Nick’s Crispy Tacos challenge:

Users can check in to the location, comment, snap a picture or read Nick’s Story to earn rewards.

Here is another screen grab of Nick’s Crispy Tacos challenge:

Here is a screen grab of Nick’s Crispy Tacos rewards details:

“On the business side, small and local business owners are eager to engage consumers at their locations with fun, loyalty-producing custom challenges on SCVNGR,” Mr. Priebatsch said. “A great way to pull in new traffic and keep consumers coming back is with rewards.

“Rewards move consumers up the value chain, turning passersby into customers, customers into regulars and regulars into vocal and social advocates,” he said.

Mobile challenges
In addition to Nick’s Crispy Tacos, Pizzelle di North Beach is challenging customers with its Stretch for Your Pizza Challenge to earn rewards.

There are 50 local businesses that are going live with SCVNGR Rewards in San Francisco, including, Pete’s Tavern, The Blue Light, Spikes Coffee and Tea, Bar None, Lookout and The Creamery.

“Mobile has the beauty of being ubiquitous and familiar,” Mr. Priebatsch said. “It’s everywhere, with you all the time, but it’s also something that you’re very familiar with.

“This means that we can take a device that you already know and love, and create an app for it that’ll make your life more fun, social and rewarding,” he said. “It’s a great distribution environment, business-wise.

“And anything location-based is inherently well suited to take advantage of the mobility provided by these nice computers we carry in our pockets all the time.”

Final Take
Rimma Kats, editorial assistant at Mobile Commerce Daily, New York