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Kellogg plans a cereal cafe to revamp image, boost sales

froot loops cereal bowl

In an effort to rebrand cereal amid slumping sales, CPG giant Kellogg is opening a brick-and-mortar cafe in New York City, according to the Associated Press.

Bowls will cost between $6.50 and $7.50, and will feature options that go beyond the average boxes in the cereal aisle, combining varieties like Special K and Frosted Flakes with add-ons such as pistachios and lemon zest, the AP says. In addition, the cafe will serve ice cream, juice and coffee.

Kellogg also revealed plans to offer delivery service later this year.

The concept is a response to declining cereal sales as alternative breakfast items grow in popularity with consumers. It may also address a factor that has reportedly squelched cereal sales among millennials: the “hassle” of cleaning the bowl post-meal.

Kellogg is not the only CPG mainstay thinking outside the box when it comes to product marketingPepsi is planning a restaurant venture with its “experiential lounge” called Kola House, featuring an artisanal menu and curated cocktails. Brands including Nestle and Chobani have also opened brick-and-mortar spots in recent years.

The Kellogg cafe is set to open on July 4. 

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