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. 

Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.

Multimedia

Exclusive Content

Financing

Restaurants are worried about the Sysco-Restaurant Depot deal. Should they be?

Independent operators were shaken when the broadline distributor announced a $29 billion acquisition of the cash-and-carry operation. But some say the deal could have some real benefits.

Financing

How will McDonald’s affect the beverage market?

The Bottom Line: The fast-food giant begins its big push into the fast-growing drinks business starting next month. The impact may not be what you think it will be.

Marketing

Chili’s tries to catch lightning in a bottle again with chicken sandwich campaign

Marketing Bites: Like it did with its Big QP burger launch last year, the casual-dining chain is once again going after fast food’s value perception.

Trending

More from our partners