Snap, Crackle, Pop Beyond Breakfast -- WSJ
December 13 2017 - 3:02AM
Dow Jones News
By Charles Passy
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (December 13, 2017).
For many Americans, the morning bowl of cereal is a simple
affair, perhaps topped with a sprinkle of sugar or fruit and
consumed quietly at the kitchen table.
But at Kellogg's NYC, a cereal "cafe" set to open Thursday in
Manhattan's Union Square neighborhood, that bowl is designed to be
a template for gourmet creativity.
At the 5,000-square-foot space, customers can enjoy their cereal
with toppings that range from candied kumquats to rum-roasted
bananas to peanut-butter chips. The seating speaks to a similar
break-the-mold approach, with options that include couches,
bean-bag chairs and even hammocks. And in case all that isn't
enough to capture a diner's attention, the cafe will offer
Nintendo, board games and free Wi-Fi.
The cafe is owned and operated by the Michigan-based Kellogg and
hospitality firm Co.create NYC. It replaces a 1,000-square-foot
store the partnership launched last year in the Times Square area
and ran until this past summer.
In developing the new space, Kellogg and Co.create NYC officials
say they sought to build on the strong response to the previous
cafe by offering more amenities and menu options such as Pop-Tart
ice cream sandwiches. The goal is to encourage customers to see
cereal in a dynamic light and as a food option well beyond
breakfast. The cafe will be open from 8 a.m. to 6 p.m. weekdays,
varying on weekends.
"It's a great place to read or do work," said Sandra Di Capua,
one of Co.create NYC's partners.
Behind the goal is a stark reality: Cereal consumption has been
on the decline for several years, as Americans turn to other foods
such as Greek-style yogurt, for their morning meal. In the past
year alone, Kellogg has seen quarterly sales in its "morning-foods"
segment, which includes popular cereal brands Froot Loops and Rice
Krispies, decline by 3% to $710 million.
Ultimately, the cafe is about pushing cereal "forward to the
modern age, " said Aleta Chase, a Kellogg marketing executive.
Kellogg and Co.create NYC officials declined to say how much the
new cafe cost to develop, or how much they are paying in rent.
Restaurant-industry insiders say the rent easily could top $1
million annually, which, in turn, could make turning a profit a
challenge.
That is especially true given the relatively low pricing of the
cafe's menu items -- a bowl of cereal runs $1.50-$7.50 -- and the
fact that patrons are encouraged to linger.
"It will attract people who spend their whole day on their
laptops and don't spend money," said Arlene Spiegel, a New
York-based restaurant consultant.
Adding to its challenges: Other cereal-themed establishments
have opened in the city in recent years. Among the latest is Milk
& Cream Cereal Bar, a Little Italy spot that offers blended
cereal and ice cream.
Still, the Kellogg's NYC team says they see a path to
profitability. They note the space could be used for events, from
birthday parties to bar mitzvahs.
"The revenue is not just cereal sales," Ms. Di Capua noted.
(END) Dow Jones Newswires
December 13, 2017 02:47 ET (07:47 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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